App Store May Violate Japanese Antitrust Law

[MacRumors]

Apple's App Store policies may be violating Japanese antitrust law, according to a new report from the Japan Fair Trade Commission (FTC) that was shared by Nikkei. Japanese regulators do not believe there is enough "competitive pressure" on Apple and Google as the two companies have a duopoly in mobile operating systems and dominate the app market.

Japanese regulators want Apple and Google to allow users to choose third-party payment methods for apps and services, rather than forcing them to use the built-in purchase options in the App Store and Play Store. Google allows for third-party payment options for apps as of 2022, as does Apple in a very limited number of countries that have passed legislation calling for alternate payments.

The FTC suggested that app store commission rates between 15 and 30 percent could be an abuse of a dominant bargaining position. Apple in response said that a commission-based model was the best way to encourage development, while Google said that most developers are charged rates of 15 percent or less.

The two companies were also accused of manipulating search rankings to favor their own apps over competitors, which they denied.

The Japan FTC is calling for further regulation to suppress anti-competitive behavior, and said that it plans to work with the government council on digital competition on new laws. FTC head Ryota Inaba told Nikkei that the group will "respond strictly to any behavior found to violate antitrust law."

Today's report suggests that Japan could force Apple into accepting third-party payment options, something that it already does in South Korea after the country passed a law banning app store operators from forcing developers to use their billing systems. Apple has a similar allowance for dating apps in the Netherlands, allowing them to accept alternative payment methods after a dispute with the country's Authority for Consumers and Markets.

In Europe, Apple is gearing up to accommodate the Digital Markets Act, which will require it to allow apps to be downloaded on the iPhone using sideloading or alternate app stores, functionality expected as soon as iOS 17.

Article Link: App Store May Violate Japanese Antitrust Law

 

[Realityck]

More incentives for the rumored iOS/IPadOS 17 app store changes to happen, allowing alternative trusted purchase methods. Like buy something via a dev web site and install it from the App Store. In comparison there are no issues when using MacOS via dev web site.

 

[hovscorpion12]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

 

[symphony]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

I mean, a lot of things can change within those 15 years, especially as technology becomes more important in everyday lives

 

[4743913]

I am more confident than ever we will soon be installing software on iOS devices without "AppStores".

 

[JPack]

iOS 17 and side-loading can't come soon enough.

For any other industry, if there were only two competitors, it would almost certainly violate anti-competition laws.

 

[rpmurray]

I find this strange behaviour for countries that have a monopoly on passing laws within their boarders. Open lawmaking up to third parties for more competition.

 

[contacos]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

They have been complaining for year though. It just takes them years to actually go through with anything

 

[lazyrighteye]

I mean, a lot of things can change within those 15 years, especially as technology becomes more important in everyday lives

Exactly. And why a more controlled/closed ecosystem is proving the smarter/healthier longterm approach than systems that are wide open. 😜

 

[Michael Scrip]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

That was my thought too.

Apple violating anti-trust laws... that were recently passed.

Sounds like entrapment! Not really... but it's still funny.

I'm interested to see how this all shakes out. I don't buy too many things from the App Store... and most services I use I subscribe directly from their website. So these new App Store rules probably won't affect me.

But for those who need it... this will be a welcome change.

👍

 

[Realityck]

Exactly. And why a more controlled/closed ecosystem is proving the smarter/healthier longterm approach than systems that are wide open. 😜

One could say that describing anything as an ecosystem is not in fashion anymore.

 

[Kierkegaarden]

Apple (and later Google) has had the same commission since 2008 — the rate has only gotten less under certain conditions. Abuse would have been raising the rate, not lowering.

Also, how can they claim that Apple and Google favor their own apps in search results? What exactly is in it for them when the apps are free? If anything, they would prefer to point to a paid app where they would make a commission off the sale.

 

[bookofxero]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

Not just them, but developers as well as even a 30% cut is still significantly less than what was being taken out by other distribution methods.

 

[nt5672]

One could say that describing anything as an ecosystem is not in fashion anymore.

Because we now know that closed ecosystems are being used to actively censor people in countries that are supposed to have free speech and push propaganda that makes the both the ecosystem and government minders happy.

But users are left out in the cold.

 

[hovscorpion12]

If Apple can pull this off better then Android, the hats to them. Otherwise, iOS will be just like Android with a different logo. Malware infested apps, hacks and glitches.

Now would a perfect time for Apple to publish a safety guide.

 

[lazyrighteye]

One could say that describing anything as an ecosystem is not in fashion anymore.

Wait, I’m not a trend setter? 😜

 

[nt5672]

If Apple can pull this off better then Android, the hats to them. Otherwise, iOS will be just like Android with different a logo. Malware infested apps, hacks and glitches.

Now would a perfect time for Apple to publish a safety guide.

Just remember that I wear my winter coat so you won't be cold. So not.

Don't want Malware infested apps, hacks and glitches, then just use the App Store and don't side load. Simple to understand for most people.

And it has worked on macOS for eons.

 

[Paddle1]

I'm interested to see how much Apple will restrict third party stores/sideloading in iOS 17. If they limit it by region I'm sure global regulators won't take kindly to it. It may be in their best interests to get ahead of that.

 

[JPack]

Also, how can they claim that Apple and Google favor their own apps in search results? What exactly is in it for them when the apps are free? If anything, they would prefer to point to a paid app where they would make a commission off the sale.

Pretty simple: obstacles to move to another ecosystem. Everybody knows this. If you don't, check out the emails between Eddy Cue and Craig Federighi regarding iMessage.

 

[4743913]

Not just them, but developers as well as even a 30% cut is still significantly less than what was being taken out by other distribution methods.

its not always about the dimes.. I cannot name one developer of any app that I purchased on the iOS AppStore. However I can name every developer of Mac software that I purchased directly from their website. With Apple's gatekeeping there are no dev/customer relationships that we have enjoyed for that past 40 years. This is just freaking weird..

 

[scheinderrob]

love to see the hammer being brought down on apple. the walls are collapsing.

don't get me wrong, i love a lot about the products but they need to be brought down a peg.

 

[jayducharme]

I don't have enough choice over who provides my electricity. I don't have enough choice over who provides my cellular service. I don't have enough choice over who provides my Internet service. I don't have enough choice over who provides my television broadcasts. But app stores are a much higher priority, evidently.

 

[genovelle]

I mean, a lot of things can change within those 15 years, especially as technology becomes more important in everyday lives

So multiple payment mechanisms or 3rd party stores for hundreds of countries or regions within countries where app may possibly be offered. It sounds like a good reason to end 3rd party app stores and go completely 1st party again offering Apple One with on subscription for whatever you need to access.

 

[genovelle]

love to see the hammer being brought down on apple. the walls are collapsing.

don't get me wrong, i love a lot about the products but they need to be brought down a peg.

When 10s of millions of users loose everything because a bad actor who was given the right to be an App Store or manage a payment system or just hacks the right one because they didn’t protect the user data properly, they will want to run investigations as to what Apple did wrong instead of asking what they did wrong.

 

[clayj]

It’s funny how just now, countries are complaining. They were fine with it the last 15 years.

This, exactly.