'Legislation Slated To Be Sent To Parliament In 2024 Would Restrict Platform Operators To Keep Users In Own Ecosystems And Shut Out Rivals; Plan Is To Allow The Japan Fair Trade Commission To Impose Fines For Violations' - Nikkei Asia
Portfolio Pulse from Happy Mohamed
Japan is planning to introduce legislation in 2024 aimed at preventing platform operators like Apple and Google from using their dominance to unfairly keep users within their ecosystems and exclude competitors. The proposed law would empower the Japan Fair Trade Commission to levy fines for any violations of these restrictions.
December 26, 2023 | 4:33 pm
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NEGATIVE IMPACT
Apple could face regulatory challenges in Japan with the new legislation that aims to curb its control over the app ecosystem, potentially affecting its market dominance and revenue.
Apple's business model relies significantly on its ecosystem, and restrictions in a major market like Japan could lead to reduced revenues and increased operational costs due to compliance or restructuring.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Google could be impacted by Japan's upcoming legislation that targets platform operators, potentially affecting its Play Store's profitability and competitive edge.
As with Apple, Google's Play Store is an integral part of its business model. The proposed Japanese legislation could lead to financial penalties and necessitate changes in how Google operates its store, impacting its bottom line.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The iShares MSCI Japan ETF (EWJ), which includes diverse Japanese equities, may see indirect effects from the proposed legislation on tech giants like Apple and Google.
While the ETF itself is not directly targeted by the legislation, the overall market sentiment and potential shifts in the tech sector within Japan could have a ripple effect on the ETF's performance.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30