AMN / WSEB DESK
The Japanese government has decided to prepare a bill that fines tech giants that obstruct other companies from competing in the market.
Firms such as Apple and Google hold dominant positions in areas such as smartphone operating software and app stores. There are concerns that this hinders new firms and raises the cost of companies that use the services.
According to NHK the Japanese government presented a draft bill in a meeting of the ruling Liberal Democratic Party on Tuesday, with the aim of strengthening restrictions against the major IT firms.
Based on the bill firms will face restrictions in the areas of smartphone operating software, app stores, internet browsers and search engines, and list prohibited acts.
The acts include preventing the use of app stores and payment systems run by other firms, and forcing unreasonable practices on other firms in business transactions.
Designated firms will be required to report on their compliance with the restrictions every fiscal year. Firms that don’t comply will be fined an amount equal to 20 percent of their sales in Japan. That’s more than three times the fine for obstructing another firm’s business under the current antitrust law. Firms that continue illegal practices face a fine equal to 30 percent of their sales.
The government plans to seek Cabinet approval for the draft bill next week, and submit it to the current Diet session.
Meanwhile Japan’s antitrust watchdog has launched a probe into Google’s alleged use of its dominance in online advertising.
The US IT giant is suspected of limiting the operations of rival firm LY Corporation, the operator of mobile messaging-service Line and search-engine Yahoo Japan.
Google has an overwhelming share in Japan’s market for what is known as “keyword-targeted” online advertising. This method involves the automatic display of ads based on keywords that users have typed into a search engine.