• The Coalition for App Fairness - Japan's SSCPA Law

  • Jan 15 2025
  • Length: 21 mins
  • Podcast

The Coalition for App Fairness - Japan's SSCPA Law

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  • Summary

  • Episode Title: The Coalition for App Fairness:
    • Welcome to today's discussion on the app store ecosystem and the challenges of anti-competitive policies imposed by tech giants like Apple and Google.
    • We will explore how these companies' practices affect developers and consumers.
    The Problem: A Broken Marketplace
    • Apple and Google charge up to 30% on most in-app purchases, which is significantly higher than transaction fees in any other industry.
    • This "app tax" impacts consumer spending power and significantly reduces developer revenue.
    • This fee creates an unfair competitive advantage for Apple's own apps that compete with third party apps, as they do not have to pay this tax.
    • Some developers have been forced out of business due to these fees, with one developer describing it as a "nuclear bomb".
      • Example: Treehouse's reading app, iFlow Reader.
    • SEO Keywords: app tax, in-app purchases, revenue, developer, competitive disadvantage
    Lack of Consumer Freedom
    • The Apple App Store and Google Play Store act as "prisons" for consumers and developers, limiting options and competition.
    • Unlike personal computer software, mobile apps are restricted to their respective app stores.
    • Consumers cannot freely install software from any source they choose.
    • App developers are not allowed to inform customers about less expensive options outside the app store.
      • Example: Fortnite upgrades cost less when purchased directly from Epic.
    • This is akin to a store preventing a brand from offering coupons.
    • SEO Keywords: consumer choice, app store restrictions, monopolistic behavior, software distribution
    Anti-Competitive Policies
    • Apple and Google use their operating system control to favour their own products and limit options for consumers.
    • They force developers to sell via their app stores and may steal ideas from competitors.
    • The Coalition for App Fairness believes all developers are entitled to compete in a fair marketplace.
    Coalition for App Fairness Vision
    • The Coalition for App Fairness advocates for the following principles for app stores:
      • Developers should not be required to use an app store exclusively or use the app store's ancillary services.
      • Developers should not be discriminated against or blocked from the platform.
      • Developers should have access to the same information and interoperability interfaces as the app store owners.
      • Developers should always have access to app stores as long as they meet fair standards.
      • A developer's data should not be used to compete with them.
      • Developers should have the right to communicate directly with their users.
      • App store owners should not favour their own apps or services.
      • Developers should not pay unfair fees or be forced to sell anything they do not wish to.
      • Third-party app stores should be allowed on the platform.
      • App store rules should be transparent.
    • SEO Keywords: app store principles, fair marketplace, developer rights, platform competition
    The Smartphone Software Competition Promotion Act (SSCPA)
    • Japan is moving towards the enforcement of the SSCPA to promote fair competition, drive innovation, and offer more choices.
    • The law will regulate platform operators with over 40 million monthly users.
    • The SSCPA is designed to help businesses invest in new technologies without facing regulatory uncertainty.
    • The Japanese Fair Trade Commission will ensure the SSCPA is implemented effectively.
    • The law's success will depend on businesses leveraging it to create new opportunities.
    • The idea that measures in place by app stores ensure user security and privacy has been questioned.
    • SEO Keywords: Smartphone Software Competition Promotion Act, SSCPA, Japan, fair competition, regulatory enforcement
    Call to Action
    • The Coalition for App Fairness is fighting against the monopolistic control of the app ecosystem.
    • Developers can join the Coalition to support consumer choice and a level playing field.
    • Consumers should expect unlimited choice for where, when, and how they purchase apps.
    Contact Information
    • To become a member, share your story, or for other inquiries: Contact the Coalition for App Fairness
    • Website: appfairness.org
    Links:
    • Coalition for App Fairness Website: appfairness.org
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