Apple App Store draws attention of Japanese competition authorities

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Last updated on May 1st, 2023 at 08:08 pm

Apple App Store draws attention of Japanese competition authorities

Epic Games’ decision to sue Apple over its approach to developing its app store has sparked renewed scrutiny of the App Store in the huge Japanese gaming market. The Bloomberg resource has published a large material on complaints and Japanese developers against the tech giant.

Apple App

Epic is focusing on a 30 percent commission on all digital payments in the app store, but Japanese game studios are concerned about a broader range of issues. They have long been unhappy with what they see as inconsistent Apple compliance with its own guidelines in the App Store, unpredictable content decisions, and feedback issues. Dozens of participants in the field, most of whom wished to remain anonymous, told Bloomberg reporters.

In turn, competition regulators in Japan said they will pay more attention to the practice of the iPhone manufacturer in connection with the unfolding confrontation between Apple and Epic Games in court.

Developers are usually silent for fear of pressure, but on rare occasions, prominent leaders in the Japanese gaming industry have also raised their voices. “I sincerely want Epic to win,” Hironao Kunimitsu, founder, and chairman of Tokyo-based mobile games manufacturer Gumi wrote on his Facebook page.

Apple and Google are duopolies in the mobile app market outside of China. Any publisher who wants the game to be playable on iPhones or Android devices is effectively forced to distribute it through the two companies’ app stores, transferring 30% of the revenue from purchases and in-game payments.

Fortnite brings in over $ 1 billion annually in in-app purchases of virtual cosmetics and add-ons. Epic Games has sued Apple and Google, considering their fees excessive and seeking to sell digital services to players directly. Both companies challenged these charges in court. The iPhone maker claims its commission is justified by providing a site with a billion users, security, and support.

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iPhones are a significant source of revenue for game creators in Japan, including well-known companies such as Bandai Namco; Square Enix, which generates 40% of its revenue from smartphone games; and Sony, whose mobile hit Fate / Grand Order has already brought in several billion dollars.

There are 702,000 developers in Japan. A recent study commissioned by Apple estimates that the App Store ecosystem in Japan generated $ 37 billion in total in 2019 ($ 11 billion in digital goods and services, $ 24 billion in physical goods and services, and $ 2 billion in advertising in applications).

However, according to the developers, interacting with the App Store is especially problematic even against the backdrop of Google Play, where the approval process is generally simpler and the feedback is better. There is even a third-party iOS Reject Rescue service to help developers navigate the unpredictable software approval process.

“Apple’s app reviews are often ambiguous, subjective, and irrational, ” said PrimeTheory founder Makoto Shoji, who helps developers with software rejections. ” Apple’s responses to developers are often harsh and formulaic, but even so, the latter have to be polite, like servants asking the owner what else he wants

Apple said it is committed to providing developers with a high-quality phone or email support, with 1,400 consultants and support staff in Japan. The company has translated its App Store software review guidelines into Japanese, and this week released Japanese subtitles for summer developer conference videos highlighting the company’s latest ideas on optimal app design. Apple has stated that its goal is to provide customers and developers with the best possible environment.

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The Japanese gaming industry is used to operating under a 30 percent commission that dates back to the era of cartridges for Nintendo consoles in the 1980s. Most developers don’t mind this practice but want to see better service, especially from Apple.

Developers complain that it sometimes takes weeks to review their creations on the App Store. One local game studio said it was phasing out seasonal in-game events, which could significantly increase revenue, as Apple did not respond to their requests to check for updates for over a month.

“Apple will never admit it, but I think there are times when they just forget that an application is in the queue for review. Or they deliberately leave the software without being considered as punishment for the developer who shows the wrong attitude towards them, ”says Mr. Shoji.

Some developers reported that Apple’s servers went down for more than a day in November last year, and the Cupertino company did not inform them of this in any way, which made the diagnostic process difficult. Such malfunctions bring direct economic costs to creators that Apple does not cover.

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