## The Fair Trade Commission's New Legislation to Promote Competition in Smartphone App Stores
The Fair Trade Commission (FTC) is taking a significant step towards promoting competition in the smartphone app market by proposing new legislation that would impose substantial fines on tech giants like Apple and Google. This legislation aims to address concerns about these companies' dominance in app distribution and payment systems.
The proposed law would prohibit Apple and Google from engaging in practices that stifle competition, such as barring competitors from offering alternative app stores or preventing app developers from using outside payment systems. This would allow for greater choice and potentially lower fees for consumers.
The FTC believes that the current Anti-Monopoly Law, which focuses on addressing anti-competitive practices after they occur, is insufficient to keep pace with the rapidly evolving digital market. The new legislation would introduce "ex-ante regulations" to prevent such practices proactively. This approach is similar to the European Union's Digital Markets Act, which allows for fines of up to 10% of a company's global annual turnover for violations.
Under the proposed legislation, companies found to be in violation would face hefty fines. For a first offense, the surcharge would be 20% of the company's related sales, and for repeated infringements, it would increase to 30%. This significant financial penalty is intended to serve as a strong deterrent against anti-competitive behavior.
The FTC's proposed legislation represents a major effort to level the playing field in the smartphone app market and ensure that consumers have access to a wider range of choices and competitive prices. This legislation is expected to be submitted to the current Diet session for consideration.