Japanese app developers condemn Apple and Google over external billing fees

A coalition of Japanese app developers has condemned Apple and Google for introducing new commissions on external payments, claiming it violates a recent law. The Mobile Content Forum urged the Japan Fair Trade Commission to investigate the practices. Developers argue that these fees undermine the viability of alternative billing options.

The Mobile Content Forum, an industry group representing around 70 companies, issued a statement on Thursday condemning Apple and Google for their new commissions on payments processed outside their app stores. Apple's fees reach up to 15 percent, while Google's go as high as 20 percent, the group said.

The Mobile Software Competition Law, fully effective since December, requires tech giants like Apple and Google to permit app developers to guide users to external websites for lower-cost transactions on in-app features or content. In response, the companies imposed these fees and are compelling developers to monitor and report user activities on those sites to enforce collection, according to the forum. The group described this as 'unjustifiable' and disruptive to external options, arguing it fails to ease the financial load on developers meaningfully.

Critics within the group highlighted that such tracking prioritizes profits over user privacy. Hopes were high that the law would drive down app prices, but concerns are mounting that its impact may be curtailed by these countermeasures.

The Japan Fair Trade Commission must probe potential breaches. 'We want to listen to various opinions from related parties and then discuss what actions we should take,' an official from the commission remarked.

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iPhone displaying alternative app stores against Tokyo skyline, symbolizing Apple's compliance with Japanese antitrust laws.
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Apple allows alternative app stores on iPhones in Japan

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Apple has announced it is opening iPhones to alternative app stores in Japan to comply with new laws aimed at boosting competition in the smartphone market. Japanese developers can launch their own app marketplaces and pay Apple as little as 5% of sales. Apps in the App Store will also offer alternative in-app payments alongside Apple's system, with commissions still applying.

The 9th U.S. Circuit Court of Appeals has largely upheld a prior ruling against Apple in its dispute with Epic Games over App Store payment policies. While the court reversed a ban on commissions for external payments, it confirmed that Apple's fees violated an earlier order. This decision stems from a long-running legal battle that began in 2021.

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Building on yesterday's Ninth Circuit decision upholding Apple's contempt violation in the Epic Games iOS payments case, the court detailed the tech giant's breaches while permitting reasonable security fees. Epic CEO Tim Sweeney declared the 'Apple Tax' dead in the US, but highlighted developers' fears of retaliation.

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Six popular Apple apps have reportedly been affected by significant subscription updates, described as a bombshell by tech observers. Users, however, argue that a larger issue overshadows this development. The changes have sparked criticism regarding Apple's design choices.

Hong Kong's privacy watchdog is investigating risks to early users of HSBC's popular PayMe mobile app after the South China Morning Post found some remain unaware their personal details may have been exposed. The compliance review will examine vulnerabilities of legacy users and the need for in-app prompts. The watchdog stressed that the bank must ensure the highest level of privacy protection by default.

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The South Korean government has begun reviewing a system to allow foreign tourists to use buses and subways with overseas-issued credit cards. This initiative aims to address the inconvenience faced by visitors who currently must purchase and top up transportation cards with cash or buy foreigner-specific prepaid cards. The study will estimate the required budget and determine who should bear the costs.

 

 

 

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