JP FTC releases guidelines for smartphone software competition

JP FTC releases guidelines for smartphone software competition

Title: JP FTC Releases Guidelines for Smartphone Software Competition

The Japan Fair Trade Commission (JFTC) has recently released a set of guidelines aimed at promoting competition in the smartphone software market. This move signals a shift in the agency's approach to antitrust enforcement, focusing on structural remedies such as divestitures rather than outright transaction blocks.

The JFTC's new guidelines, released on July 2, 2025, emphasize the importance of maintaining competition in the smartphone software sector. The guidelines outline the criteria for evaluating potential mergers and acquisitions, placing a particular emphasis on the preservation of competition in discrete markets. This approach aligns with the recent trend seen in the U.S., where the Federal Trade Commission (FTC) and the Department of Justice (DOJ) under the Trump administration have shown a willingness to approve divestiture remedies for potentially anticompetitive mergers [1].

One notable example of this shift is the FTC's approval of a consent agreement for Synopsys, Inc. and Ansys Inc., which would require the divestiture of specific assets to maintain competition in the markets for optical and photonic software tools. Similarly, the DOJ's requirement for Keysight Technologies to divest certain business units from Spirent Communications highlights the agency's commitment to structural remedies [1].

The JFTC's guidelines are a departure from the Biden administration's approach, which was generally skeptical of divestiture remedies. The new guidelines indicate that the JFTC is willing to consider structural remedies when they involve the sale of a standalone or discrete business. This change in policy is expected to provide clarity and predictability for prospective dealmakers, encouraging more mergers and acquisitions that could potentially benefit the economy [1].

The JFTC's move is part of a broader trend in antitrust enforcement, where agencies are increasingly recognizing the importance of structural remedies in maintaining competition. This shift is driven by a desire to balance the need for innovation with the preservation of competitive markets. By focusing on divestitures, the JFTC aims to address antitrust concerns without stifling potential synergies that could benefit consumers.

The release of these guidelines is a significant development for the smartphone software market. It provides a clear framework for evaluating mergers and acquisitions, promoting transparency and predictability in the regulatory process. As the market continues to evolve, the JFTC's guidelines will play a crucial role in shaping the competitive landscape and ensuring that consumers benefit from a diverse range of software offerings.

References:
[1] https://www.jenner.com/en/news-insights/publications/trump-administration-open-to-divestiture-remedies