New Smartphone Law Takes Effect: Ensure Benefits for Users by Creating More Competition

Editorial

17:05 JST, January 2, 2026

Can competition in the smartphone app market be invigorated to benefit users? It is necessary to continue closely monitoring the market.

The Mobile Software Competition Law came into full effect in December. The law strengthens regulations to counter the harmful effects of the oligopoly in the smartphone app market, which is dominated by Apple Inc. and Google LLC.

Apple and Google hold more than 90% of the domestic market share for smartphone operating systems.

Apple has its own services, including the Safari browser, an app store offering games and other apps, and payment services, be the default settings, effectively locking users into its ecosystem. Google employs a similar strategy, most notably with its Chrome browser.

Taking advantage of this lack of competition, the two companies have charged app developers fees of up to 30% on transactions.

Complaints from app developers that the fees are too high have been growing, along with criticism that these fees are being passed on to users in the form of higher prices.

It is crucial to correct the oligopoly created by the two tech giants and ensure users can choose from a variety of services.

The new law requires both companies to allow users to use third-party app stores and payment services.

When updating the operating systems, screens prompting users to select their preferred browsers and search engines are now displayed and these options appear when purchasing new smartphones. Many consumers have likely noticed this change.

Consumers are encouraged to leverage this increased freedom to wisely choose services that benefit them. This consumer behavior is expected to invigorate competition among app stores and payment services, leading to lower fees.

Apple and Google have announced measures in response to the new law’s implementation. Apple will reduce the commission rate, dubbed the “Apple tax,” from a maximum of 30% to 26%. This is one effect brought about by the new law.

However, Apple will impose a new fee of up to 15% and Google up to 20% on payments made on sites outside their apps. These measures should be constantly monitored to ensure they do not harm competition.

Meanwhile, the new law exempts certain measures, such as security safeguards against cyberattacks, from regulation. Apple and other companies have maintained smartphone security mainly through such practices as app screenings, which has earned them a certain level of approval from users.

The Japan Fair Trade Commission should implement the new law by striking a balance between ensuring safety and promoting competition.

(From The Yomiuri Shimbun, Dec. 31, 2025)