The Japan Fair Trade Commission (JFTC) has achieved a major regulatory milestone by officially publishing the first set of compliance reports under the new Act on Promoting Competition for Specific Smartphone Software. This action signals the start of a more rigorous era of oversight for digital gatekeepers, forcing major platform providers to be explicit about how they are opening their ecosystems to foster fair competition. By making these internal assessments public, the JFTC is delivering on its commitment to transparency and ensuring that both app developers and consumers can operate within a more level playing field.
These documents offer an unprecedented, detailed look at how global tech giants are navigating the law’s specific mandates regarding third-party app stores and payment systems. These filings are far more than just administrative paperwork; they represent the first practical application of Japan’s strategic efforts to dismantle the “walled gardens” that have historically limited market entry for smaller innovators. For the JFTC, this reporting process serves as an essential diagnostic tool to identify whether existing corporate policies truly align with the spirit of the legislation or if further enforcement actions are necessary.
Google’s Commitment to Open Systems and Developer Support
In its compliance report, Google confirmed its adherence to the law across several designated software categories, including Android, Chrome, Google Play, and Google Search. One of the primary highlights of Google’s submission is the expansion of its User Choice Billing (UCB) program. This initiative now allows game developers in Japan to offer third-party payment systems alongside Google Play’s billing, providing more flexibility for both developers and users.
Google also emphasized that its Android Operating System remains fundamentally open-source via the Android Open Source Project (AOSP). This structure ensures that original equipment manufacturers (OEMs) can continue to utilize the OS without being subjected to restrictive conditions from Google. To further support the industry, Google’s Japanese subsidiary, Google G.K., has established a dedicated cross-functional team and a consultation desk—the Digital Platform Consultation Desk (DPCD)—to assist developers with compliance inquiries and provide a streamlined path for dispute resolution.+1
Apple’s Security-Focused Transition and Developer Resources
Apple’s submission centers on its core software offerings: iOS, the App Store, and Safari. The report acknowledges that the new legislation has necessitated fundamental changes to Apple’s long-standing app distribution methods. While Apple has taken measures to meet these legal requirements, the company used its report to express ongoing concerns that these mandates could introduce new privacy and security risks for Japanese users by opening the platform to less controlled distribution channels.
To mitigate these potential threats, Apple continues to prioritize its human-led app review process, which evaluates approximately 120,000 apps and updates every week to protect against fraud, malware, and other security breaches. Despite the regulatory changes, Apple highlighted its deep investment in the Japanese developer community, noting that it provides access to over 250,000 APIs and 40 software development kits (SDKs) to help local creators build and scale their applications for a global market.
The publication of these reports serves as a vital benchmark for the JFTC to evaluate whether the actions taken by these tech giants are sufficient to foster a truly competitive marketplace. The process effectively shifts the burden of proof to the platform providers, requiring them to prove they are fostering an environment where competition can thrive. As the JFTC continues its review, the outcomes of these reports will likely set the tone for future digital antitrust enforcement in Japan and could significantly influence how other nations draft their own platform regulations.