Tech Giants Like Apple Can Now Face Fines Upto 20% for Anti-Competitive Tech Practices in Japan

Japan’s Fair Trade Commission (FTC) is proposing a change in the country’s antitrust laws. The revisions target tech giants like Apple, which is accused of anti-competitive practices, which can then lead to much steeper fines. 

The proposed changes mostly aim at behaviors like unfairly restricting access to app stores. Companies found to be engaging in such practices could face fines reaching 20% of their relevant sales in Japan. This goes hand in hand with the growing global trend, with the European Union implementing similar regulations to promote a more competitive digital market in March this year. 

The proposed revisions can create a fairer playing field by preventing dominant tech companies from prioritizing their own services and products on their platforms. This could involve 

  • requiring companies like Apple and Google to allow alternative app stores and 
  • payment systems to operate alongside theirs. 

This can benefit smaller developers and app creators by lowering market entry barriers.

The proposed penalties are a big increase from current regulations, which have a maximum fine of 6% of sales. Companies found to be repeat offenders could face even bigger fines, reaching up to 30% of sales in the relevant areas of violation.

The FTC’s proposal might be submitted to lawmakers within the next few weeks. If passed, the new regulations can force tech giants to adapt their business practices to comply with stricter antitrust laws. The proposal could also prompt other countries to reassess their own approaches to regulating tech giants, just like the EU has influenced Japan.

More here.

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