According to Nihon Keizai Shimbun, the Japanese authorities are preparing a “Digital Antitrust Law”. This new law will require Apple, Google and other companies to open “application sideloading” and “third-party payment” in the Japanese market.” At the moment, Google already allows sideloading of apps on its Android system. Thus, the company may only have to deal with the third-party payment requirement in Japan. As for Apple, it does not allow sideloading of apps on its iOS system. Apple’s CEO, Tim Cook stated that allowing users to sideload apps means putting the iPhones at risk. This is because the source and intentions of sideloaded apps can not be verified by Apple.
Back in 2020, the Japanese authority began investigating “antitrust issues” of Apple, Google, Amazon, Meta and other brands. This year, relevant regulatory agencies claimed to have “completed the probe”. The Japanese authority eventually announced that “Apple and Google dominate the mobile app platform and the market has a monopoly”. This is one of the reasons why it is now working on the “Digital Antitrust Law”. The law will require any company doing business in the Japanese market to open its app store and third-party payment channels. If the relevant bill is approved, the Japan Fair Trade Commission has the power to impose fines on violating brands.
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Reasons, Benefits and Drawbacks of this Law
The major reason for this law is to break the monopoly in the Japanese mobile market. According to the Japanese authority, Apple, Google and a few other brands have a monopoly. The authority made this statement after they investigated the market.
One certain benefit of this law is that users will no longer have restrictions for any app they want to use. If Apple bans the app, they can install the app from any other source. If Apple asks for a fee and they don’t want to pay, they can look for a third-party source and get it.
However, a drawback is that there is no guarantee concerning security. The Play and App stores ensure that their apps are free from bugs that could steal users’ information. Users may not get the same assurance when using an app from a third-party source.
What is sideloading?
“Sideloading” refers to bypassing Apple’s official App Store and installing apps from third-party sources. The European Union has previously passed the “Digital Market Act” and “Anti-Monopoly Law”, requiring Apple to open iOS app sideloading to users in the European market. According to a report from 9to5Mac, in the iOS 17.2 version, Apple has introduced a common framework called “Managed App Distribution”. The associated API allows users to download apps from outside the App Store. This means that Apple has plans to comply with the EU Digital Market Act. However, Apple has not yet openly announced such a feature for the European market.
