Japan Targets Apple, Google With Legislation To Curb App Store Monopolies
Portfolio Pulse from Benzinga Neuro
Japan is drafting legislation to regulate Apple Inc. (AAPL) and Alphabet Inc. (GOOGL, GOOG) by targeting their app store monopolies. The law, expected to be submitted to parliament in 2024, will require tech giants to allow third-party app platforms and payment systems on their mobile operating systems. The Japan Fair Trade Commission will enforce fines for violations, potentially up to 6% of infringing revenue. This follows similar regulatory actions in the EU and the US, with Apple and Google adjusting their policies to comply with antitrust laws.
December 27, 2023 | 3:59 am
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Apple Inc. faces potential regulatory challenges in Japan with upcoming legislation aimed at breaking its app store monopoly, which could impact its revenue and market practices in the region.
The proposed Japanese legislation directly targets Apple's app store practices, which could lead to fines and require changes in their business model. This regulatory pressure is likely to have a negative impact on Apple's short-term stock performance as investors may be concerned about potential fines and the costs associated with adapting to new regulations.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Alphabet Inc.'s Google faces similar regulatory pressures as its Class A shares counterpart (GOOGL) in Japan, with potential implications for its revenue and app store operations.
The impact on GOOG is the same as on GOOGL since they represent different share classes of the same company, Alphabet Inc. The proposed Japanese legislation is likely to have a similar negative impact on GOOG's short-term stock performance due to the same regulatory challenges faced by GOOGL.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Alphabet Inc.'s Google may have to alter its app store and payment systems in Japan due to proposed legislation, potentially affecting its revenue and control over the Android ecosystem.
Google, like Apple, is targeted by the upcoming Japanese legislation, which could result in fines and necessitate changes to its app store and payment systems. This may negatively affect Google's revenue from the Play Store in Japan and could lead to a negative short-term impact on its stock as the market reacts to potential regulatory challenges.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90