June 19, 2024
Japan Fair Trade Commission
(The Passage and Promulgation of the Act on Promotion of Competition for Specified Smartphone Software)
The Bill for the Act on Promotion of Competition for Specified Smartphone Software (the Act), submitted to the National Diet on April 26, 2024, was approved and passed at the plenary session of the House of Councillors last week on June 12 and promulgated today, June 19.
As smartphones become a foundation of daily life and economic activities, the Act aims to develop a competitive environment in which innovation by various entities is activated through competition and consumers can select and enjoy various services created by innovation, while ensuring security, etc. with respect to specified software essential for the use of smartphones, such as application stores. Specifically, the Act includes the following outline:
This Act shall come into force within 18 months from the date of its promulgation, in principle. Therefore, we plan to formulate cabinet orders, regulations, and guidelines in preparation for the implementation of the Act.
The JFTC expects that the Act will improve the competitive environment for application stores and similar services, leading to a reduction in fees paid by application developers to application stores and enabling the provision of a wider variety of services to consumers. At the same time, we expect that consumers will benefit from an expanded selection of services and more convenient new services available at lower prices.
Furthermore, we plan to effectively implement the Act by fundamentally strengthening the JFTC’s capabilities both in quality and quantity, including the recruitment of highly skilled digital experts. Through these measures, we aim to promote fair and free competition for specified software used in smartphones.
（Tentative translation）
The Bill for the Act on Promotion of Competition for Specified Smartphone Software (the Act), submitted to the National Diet on April 26, 2024, was approved and passed at the plenary session of the House of Councillors last week on June 12 and promulgated today, June 19.
As smartphones become a foundation of daily life and economic activities, the Act aims to develop a competitive environment in which innovation by various entities is activated through competition and consumers can select and enjoy various services created by innovation, while ensuring security, etc. with respect to specified software essential for the use of smartphones, such as application stores. Specifically, the Act includes the following outline:
1. Designating providers who offer the specified software such as application stores and conduct business exceeding a certain scale defined by a Cabinet Order.
2. Prohibiting designated providers from engaging certain activities that restrict competition, and obliging designated providers to take certain measures to promote competition.
This Act shall come into force within 18 months from the date of its promulgation, in principle. Therefore, we plan to formulate cabinet orders, regulations, and guidelines in preparation for the implementation of the Act.
The JFTC expects that the Act will improve the competitive environment for application stores and similar services, leading to a reduction in fees paid by application developers to application stores and enabling the provision of a wider variety of services to consumers. At the same time, we expect that consumers will benefit from an expanded selection of services and more convenient new services available at lower prices.
Furthermore, we plan to effectively implement the Act by fundamentally strengthening the JFTC’s capabilities both in quality and quantity, including the recruitment of highly skilled digital experts. Through these measures, we aim to promote fair and free competition for specified software used in smartphones.
（Tentative translation）
