'Japan To Crack Down On Apple And Google App Store Monopolies; Antitrust Curbs To Require Tech Giants To Allow Third-party App Platforms And Billing' - Nikkei Asia
Portfolio Pulse from Happy Mohamed
Japan is set to introduce regulations targeting tech giants Apple and Google, aiming to reduce their app store monopolies. The proposed legislation, expected to be presented to parliament in 2024, will mandate these companies to permit third-party app stores and payment systems on their mobile operating systems. The law will focus on four key areas: app stores and payments, search, browsers, and operating systems, to prevent the abuse of dominant market positions.

December 26, 2023 | 4:30 pm
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NEGATIVE IMPACT
Apple may face challenges in Japan with upcoming regulations requiring third-party app stores and payment systems, potentially affecting its revenue from the Japanese market.
Apple's revenue could be negatively impacted as the new regulations may reduce the control Apple has over its app store and payment systems, leading to increased competition and potentially lower margins.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Google is likely to be affected by Japan's proposed antitrust regulations, which could force changes to its app store and payment policies, impacting its dominance and revenue in the Japanese market.
Similar to Apple, Google could see a negative impact on its revenue as the regulations may lead to increased competition in app stores and payment processing, which are significant sources of income for the company.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The iShares MSCI Japan ETF (EWJ), which includes tech stocks, may experience indirect effects from Japan's new tech regulations, potentially influencing the performance of Japanese tech companies within the ETF.
While the ETF itself is not directly targeted by the regulations, the performance of Japanese tech companies included in EWJ could be influenced by the broader regulatory environment, leading to potential changes in the ETF's value.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 50