After China now Japan exhibits Skepticism on Apple’s Suspicious Practices!

Following the European Commission’s move to compel Apple to permit third-party app stores on iOS within the EU, other nations scrutinise Apple for potential antitrust and monopolistic behaviour. Recently, reports emerged that Japan is considering a significant increase in fines for large corporations found guilty of monopolistic practices. Under current Japanese law, the penalty for such practices is 6% of sales. However, policymakers are proposing to raise this to 20%, with a subsequent failure to comply potentially resulting in a fine of 30% of sales.

Japan had hinted at forthcoming changes as early as December 2023 and cautioned Apple about broader revisions to its regulations concerning anti-competitive behaviour. Central to Japan’s concerns is Apple’s control over its App Store. Like the EU, Japan will likely require Apple to open its platform to third-party app stores and alternative payment systems. All subscriptions and paid apps necessitate payment through Apple’s system, which carries a processing fee of up to 30%. Should other countries worldwide follow this trend, Apple may find itself compelled to loosen its grip on its ecosystem, given the challenges of maintaining different versions for each market.

[Image Source: LiveMint]