Japan Proposes Higher Fines for Abusive App Store Monopolies

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Japan Proposes Higher Fines for Abusive App Store Monopolies
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Apple, Google, and other Big Tech players could face fines of up to 30 percent of their sales in Japan if they violate new regulations on abusive app store monopolies. The proposed changes aim to address the resistance of Apple and Google in allowing third-party app stores into their smartphone ecosystems.

Apple , Google , and other Big Tech players could be fined 20 or even 30 percent of their sales in Japan if they break newly proposed regulations on abusive app store monopolies ., and if the proposed changes pass, today's current six percent fine for app store monopoly abuse will rise to 20 percent or more.

The legislation, which is being drafted by Japan's Fair Trade Commission , is seemingly targeted at Apple and Google, which have come under fire globally for resisting calls to allow third-party app stores into their smartphone ecosystems. While a six percent fine on Japanese sales may be manageable for tech titans like Apple and Google, 20 percent could do some serious damage, especially as these fines are based on revenue, not profit. Additionally, repeat offenders will be fined up to 30 percent, or five times the original six percent.

For reference, Apple generally takes a 30 percent cut from sales on its app store, equal to the repeat offender fine that Japan's FTC might impose. For developers that turn over less than $1 million a year, this Apple store fee drops to 15 percent.on the Google Play store, though it increases the cut to 30 percent when devs see revenue in excess of $1 million.

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