June 12, 2024
Japan Fair Trade Commission
As smartphones rapidly spread and become a foundation of lives and economic activities, the Bill for the Act on Promotion of Competition for Specified Smartphone Software, submitted to the National Diet on April 26, 2024 was approved and passed at the plenary session of the House of Councillors today. The bill 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 software particularly necessary for the use of smartphones (mobile operating systems (OS), application stores, browsers, and search engines, collectively referred to as "Specified Software").
1 Status of Diet Deliberations
213 th Session of the Diet
| May 15, 2024 | House of Representatives Committee on Economy and Industry | Bill overview |
| May 17, 2024 | House of Representatives Committee on Economy and Industry | Inquiries |
| May 22, 2024 | House of Representatives Committee on Economy and Industry | Inquiries, vote |
| May 23, 2024 | House of Representatives Plenary Session | Vote |
| June 4, 2024 | House of Councillors Committee on Economy and Industry | Bill overview |
| June 6, 2024 | House of Councillors Committee on Economy and Industry | Inquiries |
| June 11, 2024 | House of Councillors Committee on Economy and Industry | Inquiries, vote |
| June 12, 2024 | House of Councillors Plenary Session | Vote |
2 Outline of the Act
（See attachments for details）
(1) Designation of Specified Software Providers
The Japan Fair Trade Commission (JFTC) designates software service providers that conduct business exceeding a certain scale defined in a Cabinet Order for each type of Specified Software. (Providers that fall under Cabinet Order criteria will be referred to as “Designated Providers.”)
The act shall come into force on the date to be set forth by a Cabinet order within one and a half years after the date of the promulgation of this bill (excluding certain provisions).
(2) Prohibited conducts and compliance requirements
To address competition issues surrounding Specified Software, the Act stipulates certain activities in which Designated Providers are prohibited from engaging (“Prohibited Conducts”), and certain measures they are obliged to take (“Compliance Requirements”).(3) Measures to ensure regulatory effectiveness
The Act includes provisions obliging Designated Providers to submit compliance reports; enabling stakeholders to submit information; enabling relevant ministries and agencies to cooperate; granting the JFTC to investigate, issue cease-and-desist orders, surcharge payment orders (20% of relevant turnover), etc.3 Effective date
The act shall come into force on the date to be set forth by a Cabinet order within one and a half years after the date of the promulgation of this bill (excluding certain provisions).
