Japan follows the EU and promotes application sideloading: ushering in a new era of competition in the digital market

Apple recently made an important decision to make major changes to its App Store by March 2024. The main content of this change is to allow third-party app stores to operate in the European market. This news attracted widespread attention and envy from users around the world. In addition to the EU, Japan has also begun considering similar measures to require Apple to open up its app ecosystem.

It is understood that Japan is actively planning a new antitrust legislation called the Fair Trade Commission. The goal of the legislation is to break the market dominance of Apple and Google in multiple areas, including app stores, payment systems, search engines, browsers and operating systems. The legislation could force Apple to make major changes, such as forcing iPhone and iPad users to use third-party app stores and sideload apps in Japan. In order to ensure the enforcement of the regulations, the regulations also include provisions for heavy fines on violators, which may be as high as 6% of the revenue from illegal activities. Currently, the Japan Fair Trade Commission is actively advancing legislative work and is expected to complete it in the spring.

According to my understanding, this measure taken by Japan was largely inspired by the EU’s Digital Market Act. Apple has previously expressed strong opposition to the bill. In the report submitted by Apple to relevant agencies, the company made it clear that if the influx of third-party app stores results in a reduction in the commissions it receives from the App Store, this will have a serious impact on the company's business, operating conditions, and financial health. Apple also emphasized that allowing the downloading and installation of third-party applications would not only bring security risks, but also shake its important source of revenue. People around the world are paying close attention to how this series of changes will reshape the future of the application market.

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