Fair Trade Commission Proposes Hefty Fines for Tech Giants to Promote Competition in App Stores
The Fair Trade Commission (FTC) is taking a bold step to promote competition in the smartphone app market by proposing new legislation that would impose significant fines on tech giants like Apple and Google.
Under the proposed law, these companies could face fines of up to 20% of their related domestic sales if they continue to dominate the distribution of smartphone apps. This represents a substantial increase from the current 6% fine for similar violations of the Anti-Monopoly Law.
The FTC aims to level the playing field by prohibiting Apple and Google from engaging in practices that stifle competition in app stores and payment systems. This includes preventing them from blocking alternative app stores or forcing app developers to use their own payment systems.
By introducing "ex-ante regulations," the FTC hopes to proactively prevent anti-competitive practices instead of reacting after the fact. This approach is crucial in the rapidly evolving digital market, where swift action is necessary to maintain a fair and competitive landscape.
The proposed legislation also draws inspiration from the European Union's Digital Markets Act, which empowers authorities to fine violators up to 10% of their global annual sales. This demonstrates a growing international consensus on the need to regulate tech giants and ensure a healthy digital ecosystem.
The FTC's initiative is a significant step towards fostering a more competitive and consumer-friendly app market. By promoting competition and lowering service fees, this legislation has the potential to benefit both consumers and app developers.