According to a new report by Japan’s Fair Trade Commission (FTC) disclosed by Nikkei, there is a possibility that the policies related to Apple App Store and Google Play Store violate Japan’s antitrust laws.
Japanese regulators believe that Apple and Google have a duopoly in the mobile operating system space, with Apple’s iOS having a 46.6 percent market share and Google’s Android having a 53.4 percent market share, and dominate the app market without sufficient “competitive pressure.
Japanese regulators want Apple and Google to allow users to choose third-party payment methods for apps and services, rather than forcing them to use the purchase options built into the App Store and Play Store.
Both companies are making adjustments in this area in 2022: Google is allowing apps to use third-party payment options, and Apple has passed legislation requiring alternative payments in very few countries.
The Japanese FTC believes both companies abused their dominant bargaining power by setting commission rates in the app store between 15 and 30 percent.
Apple responded that a commission-based model is the best way to encourage development, while Google said that most developers are paid 15 percent or less.
Both companies have also been accused of manipulating search rankings to give their own apps a leg up on competitors, a charge they deny.
