CAF Launches Activities in Japan, Promoting Fairness in the App Distribution Ecosystem

The Coalition for App Fairness (CAF), an organization dedicated to achieving fairness in the app distribution ecosystem, announced today the launch of its activities in Japan. In the Japanese market, CAF aims to address challenges in the competitive environment surrounding app distribution and payment methods, striving to create a more equitable and transparent competitive landscape between platform operators and app developers. CAF's initiatives are based on the belief that all app developers should be able to compete on fair terms, and all consumers should have greater freedom of choice regarding their devices and services.

Major global online platforms and the app stores that manage access to them have become crucial mechanisms for distributing digital products and services. However, depending on how they are operated, structural issues can arise that affect developers and consumers.

In the current app market, some platform operators wield significant influence over app distribution and payment methods. There are cases where developers are required to use specific payment systems, and a commission (the so-called "app tax") of up to approximately 30% is levied on transactions. Such mechanisms can impact developers' revenue and opportunities for new entrants, and it is pointed out that they can also lead to restrictions on consumer choice.

In Japan, the "Act on Promotion of Competition for Specific Software Used in Smartphones" (Smartphone Software Competition Promotion Act) was fully enforced on December 18 last year. In February this year, seven organizations, including the Mobile Content Forum, issued a joint statement calling for international equal footing and the realization of a free and fair market, indicating that industry-wide discussions are progressing.

Furthermore, the Japan Fair Trade Commission is collecting information and opinions regarding compliance reports, as well as information on suspected violations.

Regarding the launch of activities in Japan, Gene Burrus, spokesperson and counsel for CAF, stated: "As regulators and legislative bodies worldwide address this critical issue, we believe that in the Japanese market, all app developers, regardless of company size or business model, should be able to compete in a fair market and operate under clear and consistent protection. CAF supports the creation of an environment where developers can freely drive innovation, build direct relationships with users, and operate without undue restrictions, while also aiming for an ecosystem that ensures more choices and control for consumers."

10 Principles for App Stores

1. Developers should not be required to exclusively use an app store or accept ancillary services (including payment systems) from app store operators, or other supplementary obligations, as a condition for accessing the app store.

2. Developers should not be excluded or discriminated against by a platform based on their business model, how they deliver content or services, or whether they compete in any way with the app store operator.

3. All developers should have timely access to the same interoperability interfaces and technical information that app store operators provide to their own developers.

4. All developers should always have access to app stores as long as their apps meet fair, objective, and non-discriminatory standards for security, privacy, quality, content, and digital safety.

5. Developer data should not be used to compete with that developer.

6. All developers should always have the right to communicate directly with their users through their apps for legitimate business purposes.

7. App store operators or their platforms should not engage in self-preferencing their own apps or services, or interfere with user choice settings or default settings.

8. Developers should not be subjected to unfair, unreasonable, or discriminatory fees or revenue sharing, or be forced to sell products they do not wish to sell within their apps, as a condition for app store access.

9. App store operators should not prohibit third-party competing app stores on their platforms or prevent developers and consumers from using them.

10. All app stores must ensure transparency in their rules, policies, promotions, and marketing opportunities, apply them consistently and objectively, provide notice of changes, and offer a quick, simple, and fair process for dispute resolution.