Apple in Japan: New payment rules draw criticism

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Apple is once again facing significant criticism from the tech industry in Japan. More than 600 companies and organizations accuse the corporation of failing to provide a genuine alternative for developers with its recently adjusted payment rules in the App Store. Despite the formal opening of the system, they argue that viable options are lacking from an economic perspective. The debate is gaining momentum as the associations are now demanding further regulatory measures.

In December, Apple announced several changes to its App Store rules in Japan. These changes were made to comply with Japan's Mobile Software Competition Act (MSCA). The new rules affect app distribution, permitted payment methods, and the terms and conditions for developers.

Many of these changes are similar to measures Apple has already implemented in other regions. There, too, the company responded to new competition laws and increasing regulatory pressure. Apple itself assessed the MSCA positively, stating that it strikes a better balance between openness for developers and ecosystem security than, for example, the Digital Markets Act in Europe.

New freedoms with new fees

The core of the changes is that developers in Japan are now allowed to direct users to offers outside the app. Additionally, alternative payment methods can be offered within apps. However, these new freedoms come with additional fees.

Apple charges commissions of up to 15 percent on web-based transactions that take place outside the App Store. Additional fees apply if apps are not distributed through the official App Store. This ensures that Apple retains a financial stake even with external payment methods.

"Not a viable option" from the industry's point of view

This very fee structure is drawing sharp criticism. Seven IT industry associations in Japan, representing more than 600 companies and organizations, consider the new rules inadequate. Their members include large IT companies, game publishers, and software developers.

According to a report by The Japan News, the associations stated that the new guidelines offered "no viable option". They argued that there was no economic incentive to use the newly permitted payment methods, as the additional commissions would largely negate any potential benefit for developers.

The associations are instead calling for a market in which a genuine variety of payment methods are available and can be used freely. The goal is real competition, not just a formal expansion of options under continued restrictive conditions.

Criticism also directed at Google and previous statements

The current joint statement comes just days after a written statement from the Mobile Content Forum dated January 29. The Mobile Content Forum is one of seven associations and had criticized both Apple and Google for their handling of alternative payment models.

This statement already made it clear that, from the industry's perspective, the existing regulations do not create genuine freedom of choice. The now-published statement builds on this criticism and intensifies public pressure.

Call for renewed intervention by the competition authority

The Japan News report also indicates that the statements are part of a larger objective. The associations are trying to persuade the Japanese antitrust authority to re-examine the case. Should this happen, further enforcement action against Apple and possibly also against Google could follow.

Whether the authorities will actually intervene again is currently unclear. However, it is evident that dissatisfaction persists within the Japanese tech industry and that Apple's previous adjustments are not perceived as a sufficient solution.

Apple continues to face regulatory pressure in Japan

The debate surrounding Apple's payment rules in Japan demonstrates that regulatory adjustments alone are insufficient if they remain economically unattractive to developers. Despite new formal freedoms, many companies see no real benefit in the alternatives offered. This further increases the pressure on Apple, and it remains to be seen whether additional regulatory measures will follow or whether the company will have to adjust its rules again. (Image: Shutterstock / Boris-B)