A pair of industry groups representing app developers in Japan and abroad have accused Apple Inc. and Google LLC of violating the nation's Mobile Software Competition Law, and are demanding that both companies address the violations.
The groups are the Mobile Content Forum -- which comprises about 70 member companies, mainly Japanese app developers -- and the Coalition for App Fairness, an international industry group. The two organizations claim Apple and Google are hindering market liberalization in Japan, pointing to a lack of improvement shown by compliance reports released in late July. They have thus urged the Japan Fair Trade Commission (JFTC) to take action.
The Mobile Content Forum on Wednesday published a statement issued against the JFTC alongside the results of a survey conducted among app developers about the law, which fully went into force in December.
According to the survey, about 90% of app developers were not using the third-party app stores or new distribution channels that have become available since the new law took effect. Both companies have imposed new fees, while Apple has made the process of installing third-party app stores complicated, discouraging app developers from using these new options, the Mobile Content Forum said.
The Mobile Content Forum claimed such actions violate the new law. It urged the JFTC to ensure appropriate law enforcement, saying that "the situation is critical as the purpose of the new law has not been achieved."
Also on Wednesday, the Coalition for App Fairness revealed that it had submitted a letter to the JFTC requesting it take action against Apple and Google, stating that both U.S. companies continue to violate the new law. The group claimed that both firms are imposing restrictions on new distribution channels, preventing Japanese consumers from reaping the intended benefits of the new law, such as lower prices and greater choice. The group urged the JFTC to "impose appropriate fines and conduct remedies" to bring Apple and Google into compliance.
In response to the groups' actions, a senior JFTC official said, "We will first engage in dialogue with Apple and Google to work toward making improvements."
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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