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Japan to open up Apple- and Google-dominated phone apps to competition By Reuters

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© Reuters. FILE PHOTO: The Apple logo hangs above the entrance to the Apple Store on 5th Avenue in the Manhattan borough of New York City, July 21, 2015. REUTERS/Mike Segar/File Photo

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TOKYO (Reuters) – Japan plans to stoke competition in smartphone app payments, which are dominated by Apple (NASDAQ:) and Google, by banning operators of major app stores from forcing software developers to use the operators’ payment systems, a government panel said.

The panel’s final report, released on Friday, said major smartphone operating system (OS) vendors should be obligated to offer users alternative ways to obtain apps in a secure way other than their own app stores.

iOS and Android from Alphabet (NASDAQ:) Google roughly divided the mobile operating system market in Japan.

Apple only allows users to download iPhone apps through its App Store, while both Apple and Google require developers to use special payment systems that charge commissions of up to 30%.

The report said the necessary legislative measures would be considered in the future, while the Asahi Shimbun daily reported on Saturday that the government aims to submit a relevant bill to parliament as early as next year.

Among the members of the government committee are Industry Minister Yasutoshi Nishimura and Economy Minister Shigeyuki Goto.

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