Japan law will require Apple to allow alternate iPhone app stores

AppleInsider

The Japanese government is introducing laws that will require Apple to allow users nationwide to download apps outside their official app stores.

Japan is opening up the App Store to competition

The two tech giants face regulations from various countries to open their platforms and let users install apps from third-party sources. For example, Europe's Digital Markets Act will compel companies like Apple to provide options that allow third-party app stores on their platforms and alternative payment systems.

Japan is the next country to impose regulations on these companies, according to The Japan Times. It will require Apple and Google to let users download apps through services other than their app stores. The government aims to stimulate competition and believes it could reduce app prices.

The government will compile a list of prohibited actions for OS providers to prevent them from showing bias towards their services and payment platforms. The regulations were created at the government's digital market competition headquarters, led by Chief Cabinet Secretary Hirokazu Matsuno.

It intends to present the appropriate legislation during the upcoming ordinary session of parliament in 2024.

Japan is also concerned that Apple and Google apps come pre-installed on iPhones and Android smartphones by default. As a result, the two companies will be required to make it easy for users to remove these apps and can't give preferential treatment to their services within their search engines.

Apple doesn't have an official search engine like Google, but the government may be referring to Spotlight, a local search feature on Apple devices that lets users search for content on their devices and provide web search suggestions.

Rules from Apple and Google

It's not possible to install iOS apps from outside of the App Store due to Apple's rules. Meanwhile, although Google lets Android users install apps from third-party sources, 97% of people still use the Google Play Store.

However, each company also prevents third-party app providers from accepting user payments through any payment platform other than those provided by Apple or Google.

Apple CEO Tim Cook cites privacy and security as two reasons while Apple doesn't allow app downloads outside of the iOS App Store. However, Japan's regulations would require developers to implement some privacy and security safeguards for their app stores for users to download apps.

Furthermore, the two companies will be compelled to enable users to make payments through third-party platforms.

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JMaille

I wonder if anyone at Apple has been paying attention to what Reddit did recently?  How much will it cost for developers that don't use the Apple App Store to use the APIs that Apple has developed?

coolfactor

Apple's business model is no longer compatible with the world. It's time for change.

Apple has been making tremendous investments into iOS and its other operating systems, and it's the App Store commission fees that pay for that. Once apps start getting distributed through alternative app stores, that revenue disappears.

Presently, iCloud offers a lot of value to developers, such as the ability to sync data across devices for a given app. If a developer chooses to distribute through an alternative app store, it's unreasonable for them to also have "free" access to the iCloud platform for their app. Who will pay for that if they aren't?

So now developers will implement their own solutions/servers to do what iCloud magically does for them, and along with that will come increased vulnerabilities and risks to users.

We're entering a new world...

rob53

JMaille said:

I wonder if anyone at Apple has been paying attention to what Reddit did recently?  How much will it cost for developers that don't use the Apple App Store to use the APIs that Apple has developed?

I'm hoping Apple will charge "developers" a ton of money who want to set up their own app store. I use the term developers loosely because what they're doing is simply "legally" hacking the iOS environment. (At least in those countries who don't want to acknowledge a company's proprietary software.) I don't understand why people and countries feel they have a right to access a company's product, telling them what they can and can't do with that product. There are, and have been, plenty of products that didn't allow software from non-company developers. Has Japan, and all the other poaching countries, contributed anything of value to Apple products? Software developers, yes, but not any government entity. 

coolfactor

JMaille said:

I wonder if anyone at Apple has been paying attention to what Reddit did recently?  How much will it cost for developers that don't use the Apple App Store to use the APIs that Apple has developed?

Exactly. This is what the decision-makers don't understand. Apple has built up a full-featured end-to-end platform that provides tremendous value to developers which they get for "free". Take away the revenue store (ie. App Store commissions) and everything changes.

iOS will need a way to know if an app came through the official App Store, or an alternative, and then allow/grant access to "cloud" features accordingly.

I believe it's possible for Apple to implement an elegant solution, and yes, it is good for competition, but the issue stands — Apple can't and won't give away their cloud services for free to developers.

riverko

I’m quite curious what will be the percentage of users who will switch to alternate stores. Of course, if some apps crucial for them will move to different store, they may not have other choice…

xyzzy-xxx

That's a step in the right direction!
I wonder why some ask what percentage 3rd party app stores need to pay to Apple – before these App Stores appeared hardware manufacturers were happy if developers brought software to their platforms.
The reason this changed is because there are less platforms nowadays (iOS and Android for mobile) so that the power shifted to few companies.

retrogusto

Ideally, Apple would just sell a version of the iPhone that doesn’t include the OS, at a much higher price that reflects the loss of revenue from apps and services. Then people who want the hardware but not the ecosystem can do whatever they want, without Apple being forced to essentially subsidize the phones of the less lucrative users with the revenues of users who participate in the ecosystem. Otherwise, the expense of providing a free OS and developer support would presumably be passed down to those of us who fully participate in the ecosystem. Of course, most people will realize that they’re better off with the current arrangement.

foregoneconclusion

"The government aims to stimulate competition and believes it could reduce app prices."

The only thing it's going to stimulate is more companies charging commissions. App prices on mobile are already at rock bottom relative to platforms like Mac/PC and video game consoles. It's a mystery as to why so many governments view the Mac/PC model as the ideal competitive system when it has the most lopsided OS distribution AND significantly higher prices for apps. 

aderutter

We’ll likely see Apple developer program changes to be more like Unity etc.

If you are an indie developer and want to release a version of an app on a non-Apple app-store then it will cost you $999 per binary upload. 

If you are a company with a turnover exceeding £1billion then it will cost you £1million per binary.

and various company size price points inbetween.

Goodbye free apps. 

spheric

THOSE MEDDLING EU BUREAUCRATS JUST HAVE IT IN FOR US CORPORATIONS! 

They can't innovate themselves, so they have to impose draconian and ridiculous…oh wait. 

Japan. 

Huh. 

sorry

eriamjh

Users will happily GIVE questionable apps their private information to run something “forbidden”.  

I say let them.  You can’t protect the idiots from themselves.  

Just set a flag on their phone that says “this loser installed outside apps” and have any support say “the only fix is to wipe your phone”.
Put it in the T&C next to the human centipede agreement.   Done.   Hands washed.  Move on.  

Alrescha

Um folks, it's not an "App Store" fee, it's a platform fee.  It just happens to be convenient to collect in the App Store.  Alternate app stores don't change Apple's cut, they just make it more inconvenient for everyone to do the accounting for it.

chasm

Alrescha said:

Um folks, it's not an "App Store" fee, it's a platform fee.  It just happens to be convenient to collect in the App Store.  Alternate app stores don't change Apple's cut, they just make it more inconvenient for everyone to do the accounting for it.

Alternate App Stores will have costs, and employees et al, and will need to charge a fee to cover those expenses. If it’s a developer-run store, then the cost will be passed on through the cost of the app.

If it’s a third-party App Store, they’re now completely free to assess a similar fee to Apple’s App Store, since consumers have already shown they are willing to pay it — so that comes out of the developer’s cut. Sure, the third-party store MIGHT charge something a bit less — but they have expenses, so there is going to be a fee either way.

williamlondon

riverko said:

I’m quite curious what will be the percentage of users who will switch to alternate stores. Of course, if some apps crucial for them will move to different store, they may not have other choice…

This is where people get screwed in that if they want a particular app they MUST buy it from another store, which means being forced also to give them your personal/financial details so you can get said app. Many don't want their details spread out amongst multiple stores, just so they can inundate you with ads or sell your details to others who will inundate you with ads.

foad

spheric said:

THOSE MEDDLING EU BUREAUCRATS JUST HAVE IT IN FOR US CORPORATIONS! 

They can't innovate themselves, so they have to impose draconian and ridiculous…oh wait. 

Japan. 

Huh. 

sorry

You joke, but actually, Japan has lost a ton of market and mindshare in the overall tech market at the hands of Apple, Google and Samsung. Sony was once super prominent in the mobile space, and but now they release highly niche phones that are focused heavily on photography and videography. Same goes for their music players. Even the PlayStation business pales in comparison. 

These acts have very little to do with doing things that benefit consumers.

foad

eriamjh said:

Users will happily GIVE questionable apps their private information to run something “forbidden”.  

I say let them.  You can’t protect the idiots from themselves.  

Just set a flag on their phone that says “this loser installed outside apps” and have any support say “the only fix is to wipe your phone”.
Put it in the T&C next to the human centipede agreement.   Done.   Hands washed.  Move on.  

What if someone I interact with has my confidential information on their phones and now I’m screwed? Others doing knuckleheaded things isn’t isolated to their devices.

chasm

riverko said:

I’m quite curious what will be the percentage of users who will switch to alternate stores. Of course, if some apps crucial for them will move to different store, they may not have other choice…

Well, we can look to the Android world for guidance on this. Studies suggest that as high as 97 percent of Android app buyers stick with the Google Play Store, as it is both the best-known and relatively safest place to purchase apps.

Because of their generous refund policy, excellent customer service, relative lack of data collection and robust service, I would imagine the Apple App Store will likely rack up similar loyalty numbers. Developers who operate their own app stores might do well, but that’s a lot of time spent maintaining a worldwide store in multiple currencies and languages with costs associated that will have to be made up for by increasing the cost of their apps …

kempathonnodge

This isn’t an easy issue.

Whilst my view is that apple is largely a responsible company with a good moral compass, there are some people who feel they are not. They do wield extraordinary power, bu the nature of the number of their devices

The irony that the EU - a big organisation with its own goal of sustaining the interests of its members (primarily the rich companies that lobby within it), should be lost to no one. 

Apple should allow app stores to be installed. It should not allow them to use Xcode or the apple developed APIs for free. If a user decides to install the other App Store, it should come with a choice that apps run in a ‘sandbox’, or the user accepts that any software malfunctions will not be supportable by apple. 

Whatever happens, apple will try to impose some limits to, quite rightly, secure users data and make sure the phone doesn’t explode in its hand. And these government organisations will argue they are trying to control the market. It’s a lose lose!

oh, and I REALLY like the idea of apple making iPhones that can come with nothing installed. Then people can install their own OS and apple can’t be accused of ‘limiting the iPhone’ in any way. 😂 (can’t see any risks with this 😂).

danox

coolfactor said:

Apple's business model is no longer compatible with the world. It's time for change.

Apple has been making tremendous investments into iOS and its other operating systems, and it's the App Store commission fees that pay for that. Once apps start getting distributed through alternative app stores, that revenue disappears.

Presently, iCloud offers a lot of value to developers, such as the ability to sync data across devices for a given app. If a developer chooses to distribute through an alternative app store, it's unreasonable for them to also have "free" access to the iCloud platform for their app. Who will pay for that if they aren't?

So now developers will implement their own solutions/servers to do what iCloud magically does for them, and along with that will come increased vulnerabilities and risks to users.

We're entering a new world...

The free ride will be over, if you can’t pay upfront, you’re gonna be sitting on the sidelines if you are a small to medium size developer.

danox

chasm said:

riverko said:

I’m quite curious what will be the percentage of users who will switch to alternate stores. Of course, if some apps crucial for them will move to different store, they may not have other choice…

Well, we can look to the Android world for guidance on this. Studies suggest that as high as 97 percent of Android app buyers stick with the Google Play Store, as it is both the best-known and relatively safest place to purchase apps.

Because of their generous refund policy, excellent customer service, relative lack of data collection and robust service, I would imagine the Apple App Store will likely rack up similar loyalty numbers. Developers who operate their own app stores might do well, but that’s a lot of time spent maintaining a worldwide store in multiple currencies and languages with costs associated that will have to be made up for by increasing the cost of their apps …

The true cost coming up……