Japan is getting tough on the tech giants that dominate the smartphone business, with new rules designed to ensure fair competition.

The new law enacted in the Diet is also intended to promote fresh entries to the market, as well as technological innovation.

Firms such as Apple and Google will be regulated in the four areas of operating systems, app stores, internet browsers and search engines.

The law spells out practices likely to attract censure. They include stopping people from using the services of competitors, and inappropriately restrictive practices.

Designated firms are required to submit a yearly compliance report. Violators face penalties worth 20 percent of their sales in Japan, rising to 30 percent for repeat offenders.

The government plans to put the new law fully into practice by the end of next year.

An expert says the new legislation is an important step forward and that it could benefit consumers in the long run.

Keio University Associate Professor Fuchikawa Kazuhiko says:" Fair competition means consumers will have access to more new technologies. It also means a greater number of options will be available to people. And if that happens, then the quality they receive will improve and prices will also likely be lower."

Fuchikawa also says issues with the dominant IT giants are not limited to just the smartphone business. He says it's important to keep an eye on developments around the world when considering how far regulations can be taken.