Japan Fully Enforces Law to Regulate Major IT Firms

Tokyo, Dec. 18 (Jiji Press)–Japan’s smartphone software competition promotion law came into full effect Thursday to regulate major information technology companies in the smartphone operating system market. The law prohibits Google LLC and Apple Inc. from blocking the use of other companies’ payment services and imposes penalties for violations. It allows app distributors to direct users to their own external payment services. Starting on the same day, Apple set the fee for using external payments at up to 15 pct, while Google set its fee at up to 20 pct. The new legislation is expected to ease the burden on app operators, as Apple and Google previously required such operators to use their payment services, charging fees of up to 30 pct of sales. Apple has reduced the fee for its own payment services to a maximum of 26 pct. If commissions decrease, app operators will have more financial capacity, which is expected to enhance technology development and lower service fees. On Thursday, Japan’s Fair Trade Commission launched a special website for business operators and consumers to report violations. “If any violation is found, necessary investigations will be conducted,” said FTC Secretary-General Hiroo Iwanari. END [Copyright The Jiji Press, Ltd.]