New Legislation Aims to Curb Tech Giants' Control Over App Stores and Payment Systems
The Fair Trade Commission (FTC) is proposing new legislation that would impose hefty fines on tech giants like Apple and Google if they continue to dominate the distribution of smartphone apps. The proposed law would allow the FTC to fine these companies up to 20% of their related domestic sales for violating the Anti-Monopoly Law.
This proposed legislation aims to promote fair competition in smartphone app stores and payment systems. It would prohibit Apple and Google from preventing competitors from offering alternative app stores or restricting app developers from using outside payment systems. The FTC hopes that this will lead to lower service fees and more options for consumers.
The new law would also introduce "ex-ante regulations," which would allow the FTC to prevent anti-competitive practices before they occur. This is in contrast to the current Anti-Monopoly Law, which focuses on addressing antitrust violations after they have already happened.
The FTC believes that this new legislation is necessary to keep up with the rapidly changing digital market. The European Union has already taken similar steps to regulate tech giants, and the FTC hopes that this new law will help Japan do the same.