Japan IT Groups Urge Apple, Google to Waive New Commissions

Yomiuri Shimbun file photo
The Japan Fair Trade Commission

Seven IT-related industry groups, including the Computer Entertainment Supplier’s Association, released an urgent joint statement on Thursday calling on U.S. tech giants Apple Inc. and Google LLC to swiftly eliminate new commissions imposed on app companies after Japan’s Mobile Software Competition Law came into effect in December.

The groups said the burden of the commissions is so heavy that directing users to external sites for payment “has not become a viable option.”

Before the law took effect, in-app sales required paying a commission of up to 30%, often referred to as the “Apple tax.” In December, Apple and Google announced that in response to the new law they would allow out-of-app billing but would charge up to 15% to 20% commissions on revenue generated on external sites of app companies.

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.”

They also argued that in the United States, similar payment methods are offered free of charge. The groups accused the two companies of placing Japan’s consumers and businesses at a disadvantage compared to ones in the United States.

One of the seven groups, the Mobile Content Forum, had already issued a written statement on Jan. 29 criticizing Apple and Google’s approach. The seven groups collectively include more than 600 companies and organizations, such as major IT firms, game companies and software developers. With the latest joint statement, calls for improvement are spreading across the broader IT industry.

Focus will likely turn to how the Japan Fair Trade Commission, which is responsible for enforcing the new law, will respond.