Apple Protests Call for Third-Party App Stores and Lower Platform Fees in Japan

[MacRumors]

Apple today hit back at a report from the Japanese government indicating that the company could be hit with new regulation to ensure fair competition in the smartphone operating system market, The Japan Times reports.

The Japanese government's interim report expressed concern over Apple and Google's control of the smartphone operating system market, particularly with regards to pre-installed browser apps, and warned that their policies can damage app providers and businesses. It proposed the introduction of new rules to ban companies from limiting the ability of users to make decisions about how they want to use their devices, with the added benefit of enhancing competition in the market.

The report also took issue with the 15 to 30 percent commission that developers have to pay to Apple for apps and in-app purchases, and the fact that they can only distribute through Apple's own App Store. As a result, it called for OS providers to allow users to be able to utilize third-party app stores and for companies to disclose thorough information about their systems.

The proposed changes aim to "realize fair and equal competition," according to Chief Cabinet Secretary Hirokazu Matsuno. Apple said in a statement "We respectfully disagree with a number of conclusions" in the Japanese government's report, and that it is facing "intense competition in every segment." Apple added that it will continue to "engage constructively with the Japanese government."

Rick VanMeter, Executive Director of the Coalition for App Fairness, commented:

With this interim report, Japan joins the growing chorus of regulators and policymakers that are putting Big Tech gatekeepers on notice for their anticompetitive practices. The report makes it clear that developers and consumers thrive when there is competition in the app ecosystem. We strongly agree with these findings and look forward to engaging with Japanese regulators and policymakers as they work to bolster innovation and allow for a free and fair mobile app marketplace.

The Japanese government will reportedly gather opinions from the public and hold further discussions before compiling a final report on the matter. Even more invasive challenges to Apple's platforms and services are underway in the European Union, where the proposed Digital Markets Act looks to force major changes to the App Store, Messages, FaceTime, third-party browsers, and Siri.

Article Link: Apple Protests Call for Third-Party App Stores and Lower Platform Fees in Japan

 

[drumpat01]

Delay, delay, delay is the name of the game. They know as soon as it happens in one country it will happen in every country.

 

[exoticSpice]

Apple it's best to give choice to the user.

 

[Marbles1]

Yep. Time for apple to get ahead of this (if they're not already) and come up with an elegant way to support 3rd party app stores and payment options in way that suits the platform.

Sure they can still take a cut. Why not ensure the Apple App Store is a place of quality and actually _really_ vet applications; provide some value.

 

[4743913]

Japan is onboard now? Its only matter of time.

 

[Supermacguy]

Well what's next? XBox and Playstation have to "open their platforms" to be able to run games from other sources? Sony and MS don't also get a 30% cut for having the games on the platform?

 

[4743913]

Yep. Time for apple to get ahead of this (if they're not already) and come up with an elegant way to support 3rd party app stores and payment options in way that suits the platform.

no, that would enable them to further delay. They just need to put a sideload switch in the settings and let users toggle.

 

[aidler]

Japan will be the next to regulate Apple. I have no doubt that all of this will not hurt Apple in any substantial way, but in the decades to come experts will say that the biggest mistake Tim Cook made was not to approach the problem constructively and proactively, but to simply wait and see.

 

[CapitalIdea]

I am concerned about platform fees and lock-in with my Sony PlayStation 5. I wonder if Japan is interested in working on that at all.

 

[vipergts2207]

At this point it might make for a shorter list to note which countries aren’t looking to take action against Apple for their anti-competitive business practices.

 

[heinzdembowski]

I don't want third party app stores. I just want to install software I want without having to pay Apple 100€ per year.

 

[falkon-engine]

Apple will resist this to the very end and probably sue until a Supreme Court or equivalent rules on the matter. But changes are coming.

I support opening up the devices to allow alternative sources for apps, just like the Macintosh. M1 iPad Pro = locked down but m1 MacBook Air = not locked down. Doesn’t make any sense to me other than apple wanting to maximize profit and prohibit other potential app stores from making profit...particularly when some iPhone users desire sourcing their apps (on devices we bought) from alternative sources. Doesn’t seem fair to me.

 

[mattoruu]

Why is the image for this article gift wrapping? I know the article is about Japan and I know the gift wrapping shown is specifically Japanese-style gift wrapping, but does the gift wrapping itself have any relevance to the article (other than it simply being Japanese)?

It’a a very (VERY!) minor thing, but there had to be a more relevant image to use for the article than the Apple logo in gift wrapping, right? Lol

 

[Sciomar]

My J-phone could not do what Docomo phones could, why is this any different...oh because it's a foreign company. It is amazing the lengths to which other countries will go to try and force open foreign tech they themselves were incapable of creating.

 

[hvfsl]

Well what's next? XBox and Playstation have to "open their platforms" to be able to run games from other sources? Sony and MS don't also get a 30% cut for having the games on the platform?

Well they are obviously not going to allow it to apply to gaming as it would negatively affected Sony too much. But for this kind of law to be fair, it needs to apply to all industries, not just phones.

 

[ksec]

Time to Pull out of Japan. Nearly 70% of Smartphone users in Japan are iPhone users. Without Apple's services such as iCloud, Siri, Maps ( ok may be not maps because Apple Map aren't any good in Japan ) and Apple Pay. iPhone user in Japan will be deeply frustrated, they could reelect a government that is more Apple friendly.

Seriously listen to the Wisdom on Macrumors, pull out of Japan.

 

[RadioHedgeFund]

Well what's next? XBox and Playstation have to "open their platforms" to be able to run games from other sources? Sony and MS don't also get a 30% cut for having the games on the platform?

The games industry is a different beast. There isn't one overall dominant platform like there was in the days of the NES. All the major consoles have the option of letting the customer buy games from new-and-used physical retail stores and digital codes from the likes of CDKeys. The PC is an open platform. Every major device offers the user choice in how they purchase their software.

 

[BootsWalking]

Turns out Apple did want 1984 to be like 1984, provided they get to be the autocrat projected on the screen.

 

[coachgq]

Apple it's best to give choice to the user.

But why does apple have to give up revenue on a platform they created? Why should all the other app stores benefit off the work of apple?

 

[aidler]

Time to Pull out of Japan. Nearly 70% of Smartphone users in Japan are iPhone users. Without Apple's services such as iCloud, Siri, Maps ( ok may be not maps because Apple Map aren't any good in Japan ) and Apple Pay. iPhone user in Japan will be deeply frustrated, they could reelect a government that is more Apple friendly.

Seriously listen to the Wisdom on Macrumors, pull out of Japan.

Pull out of Japan....
Pull out of the EU....
Pull out of <insert additional countries>
Don't pull out of China
...seriously

 

[BootsWalking]

Time to Pull out of Japan. Nearly 70% of Smartphone users in Japan are iPhone users. Without Apple's services such as iCloud, Siri, Maps ( ok may be not maps because Apple Map aren't any good in Japan ) and Apple Pay. iPhone user in Japan will be deeply frustrated, they could reelect a government that is more Apple friendly.

Seriously listen to the Wisdom on Macrumors, pull out of Japan.

You guys are running out of countries that you're calling for Apple to pull out of.

 

[gnipgnop]

At this point it might make for a shorter list to note which countries aren’t looking to take action against Apple for their anti-competitive business practices.

As always, countries using a market cap = no actual anti-competitive practices under current law. They will continue to allow companies under the cap to use the supposedly "anti-competitive" strategies.

 

[neuropsychguy]

Well what's next? XBox and Playstation have to "open their platforms" to be able to run games from other sources? Sony and MS don't also get a 30% cut for having the games on the platform?

While there are some similarities, you can run Xbox or Sony games from other sources. If you purchase a digital copy of a game, you need to activate it with Microsoft or Sony but you were not limited to buying it from their digital stores.

 

[jayducharme]

The sluice gates have opened. Nearly every country is now going to be targeting Apple and Google in the name of free markets and "choice".

 

[TheYayAreaLiving 🎗️]

Apple can’t seem to catch a break from all this.