Japan has passed a new law requiring tech giants such as Google and Apple to provide access to third-party smartphone apps and payment systems on their platforms or face significant fines.
Similar to the European Union's Digital Markets Act, this legislation demands fair practices, ensuring operating systems, browsers, and search engines are accessible to all.
Companies found engaging in anti-competitive behavior will be fined 20 percent of their revenue for each violation in Japan, with fines increasing to 30 percent if the behavior continues.
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"The EU has already taken early steps and implemented new regulations," said a Japan Fair Trade Commission (JFTC) statement.
"For the digital markets of Japan, the United States and Europe to align their efforts and demand fair competition from digital platform operators, a new legal framework is needed in the Japanese market."
Parliament's upper house approved the law without amendments.
Prior to the lawmakers' vote, Shinji Morimoto, Chair of the Upper House Committee on Economy and Industry, stated that the bill "prohibits acts that may restrict competition related to specified software."
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He did not specifically mention tech companies such as Google or Apple, which are frequently referred to as a "duopoly" in the smartphone app industry.
In April, government spokesman, Yoshimasa Hayashi, stated that Japan would "improve the competitive environment" for software-like app stores to promote consumer choice while maintaining security.
The law is expected to take effect by the end of 2025.
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