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, whose services are integral to smartphone usage, from engaging in practices that could use their market position to unfairly disadvantage competitors or restrict consumer choice. In particular, 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. Furthermore, the designated business operators are prohibited from unfairly restricting individual application businesses regarding payment methods, related web pages, or browser engines unless necessary for cybersecurity. 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.
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