The Japan Fair Trade Commission (JFTC) has officially designated specified software operators under the Act on Promotion of Competition for Specified Smartphone Software (Act No. 58 of 2024).
This designation, made on March 26, 2025, aims to regulate business practices of major technology firms providing essential smartphone software, including basic operating systems, application stores, browsers, and search engines.
Designation of Specified Software Operators
Under Article 3, Paragraph 1 of the Act, business operators providing specified software on a scale capable of controlling or excluding competition are subject to designation. The criteria for designation, as specified by Cabinet Order, include metrics such as the number of users or other business scale indicators.
The following entities have been designated as specified software operators:
- Apple Inc. – Designated for Basic Operating Software, Application Store, and Browser.
- iTunes K.K. (Corporate Number: 8011101043359) – Designated for Application Store.
- Google LLC (Corporate Number: 3700150072195) – Designated for Basic Operating Software, Application Store, Browser, and Search Engine.
Regulatory Obligations and Enforcement Timeline
Designated operators are required to adhere to compliance measures under the Act, including restrictions on anti-competitive conduct and submission of an annual report detailing compliance efforts. The provisions related to Prohibited Conducts and Compliance Requirements will take full effect no later than December 18, 2025, as specified by a Cabinet Order.
This legislative development marks a step in Japan’s regulatory oversight of digital markets, ensuring fair competition in the smartphone software sector.
