Apple's App Store "freedom" in Japan comes with strings attached, obviously

Daniel Sims

Posts: 2,412   +72
Staff
In a nutshell: Japan's government recently compelled Apple to introduce iOS App Store policies mirroring those in Europe, but the Cupertino firm has repeated its strategy of employing loopholes and new fees. Developers, including Epic Games, claim that Apple has essentially eliminated any benefit to stepping outside of its walled garden.

Apple has begun allowing iOS developers in Japan to distribute apps outside of the App Store and direct users toward alternative payment processors. However, the new policies come with various strings attached, drawing predictable condemnation from Epic Games CEO and frequent Apple opponent Tim Sweeney.

The new rules are Apple's response to a law Japan passed last year, which forced it to enable third-party app stores and payment processors. The legislation resembles rules that required the company to implement similar policies in the European Union.

However, Japanese developers must still pay Apple commission fees when distributing software or registering payments outside of the official App Store. Under the new system, apps on the store pay the company a 21% cut for in-app transactions, which falls to 10% after one year, with an additional 5% processing fee. For in-app transactions conducted outside the App Store, the commission shrinks to 15% for the first year, and apps distributed through third-party channels pay a 5% core technology fee.

Sweeney slammed the new charges as anti-competitive and criticized the requirement for all non-App Store developers to report their activity to Apple. Unsurprisingly, the iPhone-maker framed the new requirements around cybersecurity and child safety.

In a comment translated by Automaton West, Japanese game producer Ukyo indicated that Apple's new fees made expansion outside the App Store nonviable, echoing comments by Spotify following the tech giant's initial compliance with EU regulations. Mobile developers have long claimed that Apple's and Google's commission fees absorb significant portions of their revenue.

Earlier this year, a US court ruling forced Apple to enable third-party payments without so-called "Apple Taxes," and developers responded immediately. Amazon began allowing Kindle book purchases within its iOS app, and Fortnite returned to the platform after a nearly five-year absence. Congress has also made multiple unsuccessful attempts to pass legislation on third-party app stores in the US.

New Japanese regulations also impact web browsers on iOS. Apple now allows users to choose their default browser and no longer requires browsers to use Safari's WebKit engine. Shifting to alternative engines, such as Chromium or Gecko, could eventually enhance mobile website functionality and reduce the need for separate apps.

Permalink to story:

 
I still don't understand people defending this trillion dollar company, as if it cares even a little bit for them, their consumer. Even with all this blatantly bad-faith behaviour.

The only thing I'll give them credit for is that they're finding loopholes early for regulators to patch up...
 
I still don't understand people defending this trillion dollar company, as if it cares even a little bit for them, their consumer. Even with all this blatantly bad-faith behaviour.

The only thing I'll give them credit for is that they're finding loopholes early for regulators to patch up...
I too don’t get the fanboy defense. But I also don’t get the moral outrage framing either.

This is a trillion-dollar company behaving exactly how capitalism incentivizes companies to behave: protect revenue, exploit gray areas, and comply with the letter of the law while undermining its spirit. None of this is surprising, and none of it means Apple is evil. It just means regulators have to do a better job to force compliance.

The new fees make “leaving the App Store” basically theoretical. You can go outside the wall, but you still pay rent and report back to the landlord. That’s not competition so much as controlled permission.

Apple doesn’t deserve defending like it’s your buddy. But it also doesn’t deserve cinematic villain treatment. Finding loopholes is what corporate lawyers are paid to do.

This is just what companies do when regulatory enforcement is weak—and finding loopholes early is basically them beta-testing the law for regulators.
 
This is a trillion-dollar company behaving exactly how capitalism incentivizes companies to behave: protect revenue, exploit gray areas, and comply with the letter of the law while undermining its spirit. None of this is surprising, and none of it means Apple is evil. It just means regulators have to do a better job to force compliance.
Dont hate players, hate the game
 
Back