The Japanese government is working on a new bill that will target tech giants Apple and Google for their alleged abuse of monopoly power in their digital app stores. According to the proposed bill, these companies could face fines of up to 20% of their total sales in Japan, with repeated violations potentially leading to fines of up to 30%.
This new measure represents a significant increase from the current maximum fine of 6% of sales. The Japanese Fair Trade Commission (FTC), which is working on these amendments, is specifically targeting Apple and Google, both of whom have faced criticism globally for their restrictions on third-party app stores within their ecosystems.
For Apple, which charges a 30% commission on sales in its App Store, and Google, which charges 15% initially and 30% after reaching a revenue threshold, these new sanctions could have a substantial impact on their financial performance. Both companies are also currently embroiled in antitrust investigations in the US and the EU.
In the US, Google has already paid $700 million to settle claims from multiple states and territories, while Apple is facing lawsuits from 15 states and the Department of Justice. In Europe, both companies are required to comply with the EU Digital Markets Act, which aims to limit their dominance in app distribution.
It remains to be seen whether these potential fines in Japan will prompt Apple and Google to reconsider their business practices. However, the Japanese government stands to benefit financially from these fines, which could help fund future antitrust actions if necessary.