Upwardly Mobile - API & App Security News

The Coalition for App Fairness - Japan's SSCPA Law


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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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Upwardly Mobile - API & App Security NewsBy Approov Limited