Khaberni - Apple and Google are facing a new wave of objections, after more than 600 Japanese companies issued a joint statement criticizing the payment policies within the app stores, considering that the recent changes still maintain commissions at "high and unfair" levels.
The movement was led by seven associations representing the IT sector in Japan, and they directed their statement directly to the companies, noting that allowing the use of external payment systems has not achieved the desired goal, due to the continued imposition of commissions ranging between 15% and 20% even when using external payment gateways.
From 30% to 20% but the problem persists
Apple announced last December changes to its app distribution policies and payment options, in compliance with the Japanese Mobile Software Competition Act (MSCA), which aims to enhance competition and give developers more flexibility, according to a report published by "androidheadlines" and reviewed by "Al Arabiya Business".
Under the changes, developers in Japan can now direct users to external payments or promotional offers outside the app, a step that was supposed to reduce their reliance on the built-in payment systems within the App Store and Google Play.
However, the protesting companies say that the reality is different; Apple and Google still impose reduced commissions on transactions that occur outside the app, making the difference between the two systems – internal and external – economically limited.
And these companies affirm that reducing the commission from 30% to a range between 15% and 20% does not radically change the profit equation, especially for apps that generate millions of dollars in annual revenue.
Circumventing the spirit of the law?
Critics of the companies believe that the formal allowance of external payment methods does not necessarily create a truly competitive environment, as the platforms continue to deduct a percentage of the revenue.
Some also hint that complicating the external payment experience may practically push users and developers to stay within the official payment systems, maintaining the economic dominance of the platforms.
A global crisis repeated
The Japanese move is not the first of its kind.
Apple has faced similar criticisms in the European Union after introducing changes to its store in compliance with the Digital Markets Act (DMA).
Developers at the time considered that the changes were superficial and did not reflect a real openness, prompting the European Commission to threaten periodic financial penalties if full compliance was not achieved.
Google has also fought legal battles in several markets because of its commission policies and payment systems within its store.
The battle between platforms and developers continues
These developments reflect the escalating tension between technology giants and developer communities around the world, at a time when regulatory pressures on business models based on commissions are increasing.
While Apple and Google claim that their fees cover the costs of security, infrastructure, and technical support, developers see the dominance of the platforms on distribution and payment systems as presenting them with limited choices.
As digital competition laws come into effect in several countries, the debate around the "digital store tax" is set to escalate in the upcoming phase.
