A Critical Examination of Japan’s Mobile Software Competition Act (MSCA) and its Guidelines
Abstract
This article critically examines Japan’s Mobile Software Competition Act (MSCA), enacted in June 2024 and set for enforcement by the Japan Fair Trade Commission (JFTC) in December 2025. Aimed at Apple and Google, the Act imposes ex ante obligations including bans on selfpreferencing, mandatory interoperability, restrictions on app review and payment practices, and controls on pricing and fees, reinforced by detailed JFTC Guidelines issued in July 2025. The article argues that the MSCA departs from market-oriented principles by adopting categorical per se prohibitions rather than the case-by-case, effects-based approach of Japan’s Antimonopoly Act. Contrary to the MSCA’s premise of entrenched dominance, this article highlights existing rivalry between Apple’s integrated ecosystem and Google’s open Android model, alongside emerging competition driven by generative AI and device innovation. The analysis shows that rigid regulation risks eroding product differentiation, discouraging innovation, and reducing consumer welfare, while specific provisions-such as Article 6’s ban on self-preferencing, Article 7(2)’s mandate to open core OS functions, and Articles 7-8’s restrictions on app store, payment, and browser policies-raise additional concerns. These measures undermine intellectual property rights, compromise device security, and deteriorate user convenience, while fee controls distort markets. The MSCA also grants the JFTC broad discretion in highly technical matters, heightening risks of regulatory overreach and micromanagement. The article concludes that Japan’s competition concerns are better addressed within the flexible framework of the Antimonopoly Act, as illustrated by recent enforcement against Apple and Google. It recommends that the JFTC pursue a restrained, dialogue-based approach that balances competition, innovation, and consumer safety.
Read the full piece at SSRN.