Following the passage of the Digital Markets Act antitrust law in the European Union, Apple is mandated to allow users in Europe to install iOS apps from sources other than the App Store by March 2024. Although Apple has not disclosed its approach to this requirement, global regulators are contemplating applying similar measures to the company, with Japan potentially being the next nation to do so.
Japanese regulators are in the process of drafting antitrust legislation that will compel major tech companies, including Apple and Google, to permit third-party app stores and alternative payment methods for all apps. Essentially, this legislation aims to enforce sideloading in iOS for Apple. The proposal is anticipated to be submitted to parliament next year and will focus on four key areas: app stores and payments, search, browsers, and operating systems.
If approved, the Japan Fair Trade Commission will be empowered to levy fines on companies violating the new legislation, with further details expected to be unveiled by spring 2024.
In 2020, the Japanese government initiated an antitrust investigation into Google, Apple, Amazon, and Facebook. During the same year, numerous Japanese developers expressed dissatisfaction with the App Store's business model. By 2023, the Japanese regulator completed its study, determining that Apple and Google dominate the mobile app market.
According to local authorities, the proposed legislation would enable Japanese companies to establish their own app stores on platforms like iOS and Android. Developers would also have the option to choose payment systems from local fintech companies with lower fees.
The new Japanese antitrust legislation bears resemblance to the European Union's Digital Markets Act, requiring Apple to allow developers to distribute iOS apps outside the App Store. Third-party apps would also be permitted to utilize external payment platforms for in-app transactions.
Numerous reports suggest that Apple has been working behind the scenes to facilitate sideloading in iOS in regions where it is compelled to do so. However, the company currently has no intentions of making sideloading universally available. Several months ago, Apple's vice president of software engineering, Craig Federighi, acknowledged the necessity for Apple to comply with European Union legislation.
Yet, on other occasions, Federighi and other Apple executives have voiced opposition to sideloading, asserting that distributing apps outside the App Store could pose risks to users.
Clearly there is a lot that remains to be seen from Apple and how they plan to deal with the new regulations. We will continue to follow the story.
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