Japan’s Smartphone Act and the limits of dialogue-driven digital regulation

Japan’s Mobile Software Competition Act (the “Smartphone Act”) seeks to increase competition in the smartphone ecosystem through ex ante regulation. It is best understood as a safety-conscious, dialogue-based variant of ex ante digital regulation; yet precisely those defining features may ultimately constrain its ability to deliver meaningful competitive change. Although the Japan Fair Trade Commission possesses formidable enforcement powers on paper, their practical use is constrained by institutional traditions favouring cooperative enforcement and by geopolitical considerations, specifically the need to avoid antagonising the United States. Early evidence suggests that a regime built around flexibility and cooperation may struggle to change the behaviour of global technology firms. More fundamentally, Japan’s experience raises broader questions about whether ex ante digital regulation can succeed without a credible prospect of escalation to formal enforcement measures.