Japan: Developers criticize Apple's new fees

Apple is not only facing regulation of its App Store in the European Union. Competition authorities are also intervening by law in Great Britain, Brazil, and Japan. In Japan, where the regulations came into force in December, the process between Apple and the authorities was considerably more harmonious beforehand than between Cupertino and Brussels: there was no mutual public reproach and no lawsuits. It was even heard from circles close to the company that while they still do not consider regulation necessary, it would be tolerable as it is with Japan. But is the regulation in Japan really bringing about positive results for developers? The first doubts are now being raised.

A coalition of seven IT industry organizations, including the Computer Entertainment Supplier's Association, has published a joint statement calling on Apple and Google to immediately abolish the new commissions for app developers. This is reported by Japan News. The associations jointly represent more than 600 companies, including large IT firms, game developers, and software manufacturers. They criticize that the newly permitted option of external payments is in fact uneconomical. Some even go so far as to say that it is even more expensive compared to using Apple's payment systems. As early as the end of January, the Mobile Content Forum, one of the participating organizations, had already voiced initial criticism. With the joint statement, the protest is now expanding across the industry.

Developers: Opening brings no benefits

The Japanese Mobile Software Competition Act (MSCA) is actually intended to bring about improvements for app developers and strengthen their position against US big tech firms. This includes allowing them to bypass Apple and Google's payment systems. However, Apple and Google still charge a 15 to 20 percent commission on external revenue. While this is a reduction at first glance compared to the previously usual 30 percent commission on in-app purchases, the associations argue that additional fees from payment providers are incurred with external processing. They point out that comparable regulations exist in the USA and accuse Apple of discriminating against Japanese developers.

In addition to the liberalization of payment systems, the Japanese law also provides for alternative app stores and selection screens for search engines and alternative browser engines. This makes it partly similar to the Digital Markets Act (DMA) in the EU. However, Europe's regulation is more far-reaching in terms of interoperability, for example. While in Japan Apple and Google can refuse requests from other manufacturers to open their systems for their devices, citing security reasons, the EU explicitly mandates openings. Recently, Apple had to make concessions in its notifications with iOS 26.3. Apple takes the view that EU regulation endangers user security, among other things.

How does the regulator react?

In Japan, attention is now focused on the Japan Fair Trade Commission. It had already announced in advance that it would closely monitor the implementation of the new rules in dialogue with Apple and Google. It also reserves the right to demand further changes if the tech companies' previous concessions are deemed insufficient. It can initiate investigations and impose significant fines in the event of violations.

(mki)