## New Legislation Aims to Fine Tech Giants for Stifling Competition in App Stores
The Fair Trade Commission (FTC) is preparing new legislation that would impose hefty fines on tech giants like Apple and Google for stifling competition in smartphone app stores and payment systems. The proposed legislation, known as the "smartphone software competition promotion law," would empower the FTC to levy fines of up to 20% of a company's related domestic sales for a first offense and 30% for repeated infringements. This represents a significant increase from the current 6% surcharge for similar violations under the Anti-Monopoly Law.
The FTC's motivation for this new legislation stems from the recognition that the current Anti-Monopoly Law, which focuses on addressing anti-competitive practices after they occur, is insufficient in the rapidly evolving digital market. The new legislation aims to prevent such practices proactively through "ex-ante regulations," ensuring a more competitive and consumer-friendly environment in app stores and payment systems.
The proposed legislation specifically targets the dominant positions of Apple and Google in the smartphone operating system market, where their respective app stores, App Store and Google Play, hold a near-monopoly. The legislation would prohibit these companies from barring competitors from offering alternative app stores or preventing app developers from using outside payment systems. This would introduce competition and potentially lead to lower service fees and more options for consumers.
The FTC's initiative aligns with the European Union's recent efforts to regulate tech giants through the Digital Markets Act, which allows for fines of up to 10% of a company's annual global sales for violations. This demonstrates a growing global trend towards stricter regulations on tech companies to ensure fair competition and protect consumer interests in the digital landscape.