Japan drafts antitrust laws challenging Apple's App Store monopoly, advocating sideloading

Japan is reportedly working on antitrust laws targeting tech giants Apple and Google, with a focus on their control over app stores, payments, search engines, browsers, and operating systems. The legislation includes a provision to force Apple to allow app sideloading on iPhones and iPads in Japan, meaning that apps from the Apple App Store would not be the only official way to obtain apps within the OS. The law also requires alternative payment methods for in-app purchases on Apple devices, hinting at the possibility of Japanese users using non-Apple approved payment methods for app transactions.

Expected changes may require Apple to allow users to access alternative app stores, which is especially useful for other app store initiatives, such as the already known Xbox-branded mobile game store from Microsoft, whose launch date is yet to be announced.

Non-compliance with the new rules could lead to fines, equivalent to about six percent of the revenue from the non-compliant activities. The Japanese Fair Trade Commission is finalizing the legislation, which is expected to be ready by spring, but it must be ratified by the Japanese parliament in 2024 before it becomes effective.