Japan: Adopted Bill on Promoting Competition Regarding Specific Software Used in Smartphones including measures regulating use of non-public data

On 12 June 2024, the Bill on Promoting Competition Regarding Specific Software Used in Smartphones was adopted by the House of Councillors. The Bill prohibits designated business operators from using non-public data obtained through basic operating software, app stores, or browsers in order to obtain a competitive advantage against other individual application businesses. Furthermore, the Bill outlines requirements for the handling and protection of user data by designated business operators, aiming to safeguard consumer privacy and prevent misuse of personal information. It mandates transparency in data acquisition, ensures users' rights to data portability, and imposes obligations on businesses to disclose data management practices. Finally, the Bill states that designated businesses are prohibited from engaging in unreasonable discrimination against individual application businesses in the use of basic operating software or app stores and prioritising their products or services over others without a justifiable reason. The Bill now goes to the Cabinet and Emperor for the signing into law. The Bill’s implementation date will be established by government ordinance.