Apple defended its In-App Payments policy to the Japanese government, arguing that it is more than just a payment processing function and that the App Store’s fee rates are “reasonable.”
Japan’s Parliament’s Digital Market Competition Council produced a competitive assessment of the mobile ecosystem in June, discussing how technology companies like Apple and Google can influence the country’s sensitive market. did. That same month, the government announced that it intended to force Apple to allow users to install apps from sources other than the official App Store.
On October 12, Apple’s response to the report was released, and the iPhone maker disagreed with some of its findings.
In response, Apple argued that the current process is already sufficient to ensure transparency and procedural fairness, according to the report. Makotakara. Apple has also already made changes to its operating system and Safari in response to the “hypothetical concerns raised” in the report.
In a translated note, Apple says In-app Purchases is “not a payment processing service.” He added that IAP’s success has been driven by significant investments in technology that enables strong customer relationships and high engagement.
“As such, IAP is more than just a payment processing service,” Apple continued, suggesting that IAP offers developers a way to monetize their apps with simple and easy functionality. Instead, Apple will charge a “reasonable fee” to cover the cost of the technology and innovation to make IAP work.
Apple’s fees are “based on the tools, technology, and other resources that developers use to create, test, and distribute apps and services,” so IAP cannot be compared to regular payment processing. These also allow Apple to maintain and consistently improve the premium feel of its services that users expect.
Justification of costs
Regarding transaction costs, the company said that Apple’s fees are “reasonable given the billions of dollars Apple spends developing and operating the iOS platform, including the App Store.” Apple is said to be charging less than 15% of the app’s share “based on and in full alignment with the value developers can and do receive from Apple.” thing”.
Providing tools, technical and marketing assistance, licensing Apple IP, acquiring iOS users, and other overall benefits are among the reasons developers agree to pay 15% to 30% for the service. Yes, the memo continued.
Apple also notes that its fees do not exceed those of other companies in the industry, including Google, Amazon, and Samsung storefronts, and Sony and Nintendo game console retailers.
Concluding the note, Apple addresses the security aspect, stating that centralized distribution of apps is the basis of a multi-layered approach. Changes to this central app distribution system, such as sideloading and enabling third-party app storefronts, could expose users to “greater risk.”
Apple’s comments echo similar comments in other areas where Apple’s App Store empire is at risk of increased government oversight.