How do the approaches to regulating mobile ecosystems differ between Japan, the US and EU, and what drives these differences?

Reiko Aoki, Commissioner, JFTC

Tokyo, November 2024

Reiko Aoki addressed the distinct approaches to regulating mobile ecosystems in Japan, the US, and the EU by emphasizing how technological advancements influence these regulatory frameworks. She highlighted the importance of mobile devices as a central interface for consumers accessing digital services and ecosystems, including games, social networks, cloud services, and more. The dominance of mobile platforms has grown with the integration of complementary technologies such as voice recognition, which has enhanced their role as gateways to the broader digital ecosystem.

Aoki noted the challenge of gatekeeper companies that control critical aspects of the mobile ecosystem, often building upon existing technologies to strengthen their positions. This dynamic has implications for competition, as new technologies like voice recognition and other emerging interfaces risk being subsumed into the existing ecosystem instead of fostering greater competition. She underscored the pivotal role of regulators in ensuring these innovations are allowed to develop independently, potentially breaking into the market as transformative interfaces rather than merely reinforcing the power of current gatekeepers.

Reflecting on recent developments, Aoki remarked that while some viewed technologies like AI as potential disruptors capable of transforming the mobile ecosystem, they have yet to fulfill that promise. As such, competition authorities must remain vigilant, encouraging environments where emerging technologies can challenge incumbents rather than being co-opted as supplementary tools. This proactive stance aims to preserve competition and innovation in the evolving digital landscape.