Japan tech groups criticize new App Store payment rules

Following a recent change to multiple App Store rules in Japan, a coalition representing more than 600 local companies is calling for further regulatory action. Here are the details.

’Not a viable option’

Last December, Apple announced a series of changes to app distribution rules, payment options, and business terms in Japan, in an effort to comply with the country’s Mobile Software Competition Act (MSCA).

Many of these changes should be familiar to 9to5Mac readers, since they closely mirror what Apple has been doing around the world in response to new competition laws and regulatory scrutiny.

In Japan, that meant allowing developers to link users to off-app promotions and offer alternative in-app payment methods, but with new fee structures attached, including commissions of up to 15% on web-based transactions and additional charges for apps distributed outside the App Store.

At the time, Apple lauded Japan’s MSCA, claiming it did a better job of balancing openness and security than the Digital Markets Act in Europe.

However, not everyone sees it this way. According to The Japan News, seven IT-related industry groups, which “collectively include more than 600 companies and organizations, such as major IT firms, game companies and software developers,” are calling for Apple (and for Google) to waive off-App Store commissions, as the new directives have “not become a viable option.”

From the report:

The seven groups criticized the new commissions, saying there is “no economic incentive” to use the newly permitted payment methods. They urged the creation of a market in which “a diverse range of payment methods can genuinely become options.”

The Japan News notes that today’s joint statement comes just days after the Mobile Content Forum, which is among the seven industry groups, “issued a written statement on Jan. 29 criticizing Apple and Google’s approach.”

The report also notes that today’s statements are the latest attempt to pressure the Japan Fair Trade Commission into re-examining the issue, potentially triggering additional enforcement. Whether that actually happens remains to be seen.