On Thursday, the Japan Fair Trade Commission said that, Apple and Alphabet Inc’s Google have been accused by Japanese antitrust law with their handling of mobile apps, arguing for further regulation to prevent anti-competitive behavior by tech platforms.
According to a report released by the antitrust regulator, the two tech giants have been found to hold a duopoly in mobile operating systems here, with the market share of Apple’s iOS at 46.6% and Google’s Android at 53.4%, said FTC. They also dominate the app store market, where the FTC said there is “not enough competitive pressure”.
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The report directed the two giants to allow users to select third-party payment methods instead of forcing users to go through their own services, addressing an issue often cited by antitrust regulators elsewhere in the world.
It also targeted to their app store commission rates of 15% to 30%, which have often worried developers. The FTC said that unilateral setting of excessive fees could comprise abuse of a dominant bargaining position under Japanese antitrust law.
In answers to questions sought from the regulator, Apple said it considered a commission-based model to be the best way to promote app development. Google professed that most developers that pay the fees are charged rates of 15% or less.
Countering this, the FTC said that Google and Apple could favor their own apps over competitors by influencing search rankings, for instance, and said such practices would have antitrust consequences. Both companies denied engaging in such behaviour. It asked them to ensure a level playing field.
Moreover, the iPhone 14 Pro outperforms the Samsung Galaxy S23 Ultra in benchmarks for single-core performance by 21.02%.
According to the FTC report, the current antitrust laws are insufficient to address the rapidly evolving digital sector, and new laws are needed to prevent anti-competitive behaviour.
It’s essential to remember that the App Store has a 100% market share on iOS devices, whereas Google Play is thought to have a market share in the high 90% range for Android devices.
Preventive regulation is a topic being discussed by the Japanese government’s council on digital competition, and the FTC intends to assimilate closely with the government and participate in any future rule-making discussions.
Scheduled to take effect in 2023, The Digital Markets Act, demonstrates that the European Union is approaching regulation with caution.
The law states that tech giants are prohibited from using their platforms to harm rivals or persuade users into using only their own payment services.
