• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
TechApple

Apple’s App Store draws scrutiny in yet another country

By
Takashi Mochizuki
Takashi Mochizuki
and
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Takashi Mochizuki
Takashi Mochizuki
and
Bloomberg
Bloomberg
Down Arrow Button Icon
September 3, 2020, 7:36 PM ET

Epic Games’ decision to sue Apple over its mobile store practices has sparked new scrutiny in the massive Japanese gaming market, prompting complaints and questions about how to counter the tech giant’s dominance.

While Epic, publisher of the hit title Fortnite, focuses on the 30% revenue cut app stores typically take, Japanese game studios have broader concerns. They have long been unhappy with what they see as Apple’s inconsistent enforcement of its own App Store guidelines, unpredictable content decisions and lapses in communication, according to more than a dozen people involved in the matter.

Japan’s antitrust regulator said it will step up attention to the iPhone maker’s practices in the wake of the high-stakes legal clash. And in rare cases, prominent executives are beginning to speak out after staying silent out of fear of reprisal.

“I want from the bottom of my heart Epic to win,” Hironao Kunimitsu, founder and chairman of Tokyo-based mobile game maker Gumi Inc., wrote on his Facebook page.

Apple and Google hold a duopoly over the mobile app market outside China. Any publisher that wants a game to be played on iPhones or Android devices is effectively forced to distribute it via their app stores, sharing revenue from an initial purchase and future, related items.

Epic, whose Fortnite generates more than $1 billion annually from in-game purchases of virtual cosmetics and extras, sued both companies for what it considers excessive fees and for the right to sell game extras directly to players. Apple and Google have disputed those charges in court. The iPhone maker argues its cut is justified by its provision of security, development support and an audience of a billion users.

The iPhone is a huge revenue driver for game creators in Japan, including established names like Square Enix Holdings Co., which gets 40% of its group revenue from smartphone games, and Bandai Namco Holdings Inc. Sony Corp. has a multibillion-dollar mobile hit called Fate/Grand Order.

With 702,000 registered developers, Japan is home to one of the most creative developer communities. A recent study commissioned by Apple estimated the App Store ecosystem in Japan generated $37 billion in billings and sales in 2019 — $11 billion in digital goods and services, $24 billion via physical goods and services and $2 billion from in-app advertising.

Yet the App Store is particularly problematic, according to game developers, compared with Google’s Android Play Store, where the approval process tends to be smoother and there’s better communication. There’s even a third-party service dubbed iOS Reject Rescue, designed to help developers navigate through the unpredictable approval process.

“Apple’s app review is often ambiguous, subjective and irrational,” said Makoto Shoji, founder of PrimeTheory Inc., which provides the rejection service. “Apple’s response to developers is often curt and boilerplate, but even with that, you must be polite on many occasions, like a servant asking the master what he wants next.”

Apple said it strives to give developers high-quality support by telephone or email, including through 1,400 advisers and customer service employees based in Japan. It has translated App Store review guidelines and this week released Japanese subtitles to its developer conference videos from the summer, setting out its latest thinking on optimal app design. Apple said the goal is to offer the best place for customers and developers to get and create apps.

The Japanese games industry is familiar with the 30% revenue share, since it originated with Nintendo Co. console cartridges back in the 1980s. Most developers don’t mind it, but they want to see better service, especially from Apple.

Developers complain that titles waiting for App Store review sometimes take weeks to be cleared. One local games studio said it gave up hosting seasonal in-game events, which can be a big revenue accelerator, because Apple didn’t respond to their update review request for more than a month.

“While Apple will never admit it, I think there are times when they simply forget an item’s in the review queue or they intentionally keep it untouched as a sanction to a developer giving them the wrong attitude,” said Shoji.

Apple said its app review team operates across two time zones and Japanese-speaking representatives are available to discuss particular apps over the phone with developers during local business hours.

In one case in November, cited by several game makers, Apple’s servers went down for more than a day without any notification to developers, undermining their efforts to diagnose the issue. The Cupertino, California-based company’s system status screens were also slow to indicate any trouble. Such malfunctions carry direct economic costs for creators, which Apple does not reimburse. Apple said it works hard to keep its App Store systems fully functional all the time.

Japanese firms also say the company flip flops at times on its interpretation of appropriate content and changes policies without advanced notice. Several game studios reported having characters that were approved on the interpretation they were dressed in swimsuits, then later rejected on the judgment that they were in underwear and thus sexualized. One developer who had implemented an in-game system that Apple approved, later saw the same code rejected by the App Store operator in a subsequent game.

Apple pointed out that its guidelines prohibit “overtly sexual or pornographic material” and stressed it has a responsibility to provide a safe and trusted place for users to get apps.

Tokyo-based games consultant Hisakazu Hirabayashi has seen the challenges first-hand. One development team checked their game’s revenue-making strategy with Apple several times before release, making sure Apple gave the go-ahead. Weeks after the app launched, the App Store owner changed its stance, saying the developer should take the function out of the app or the app’s distribution would be terminated, according to the consultant.

“Apple is a sheriff who sometimes makes unfair interpretations of the guidelines for its own benefit,” Hirabayashi said.

About the Authors
By Takashi Mochizuki
See full bioRight Arrow Button Icon
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

How Grab’s CTO sees the superapp’s push into physical AI and automated driving—and why he uses his competitors’ robots in the office
AITransportation
How Grab’s CTO sees the superapp’s push into physical AI and automated driving—and why he uses his competitors’ robots in the office
By Angelica AngMay 22, 2026
3 hours ago
Trump AI and crpto czar David Sacks sits next to Meta CEO Mark Zuckerberg at a dinner table in the White House as Zuckerberg turns to Sacks and says something.
AIAmerican Politics
Tech billionaires convinced Trump to back off an AI executive order. But much of MAGA favors AI regulation
By Jeremy KahnMay 22, 2026
3 hours ago
James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
5 hours ago
A photo taken during the Maroon Bells bicycle ride during Fortune Brainstorm Tech 2019 in Aspen, Colorado. (Photo: Fortune)
InnovationBrainstorm Tech
Fortune Brainstorm Tech 2026 will be brilliant
By Andrew NuscaMay 22, 2026
6 hours ago
satya nadella
AITech
Microsoft reports are exposing AI’s real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
7 hours ago
Sam Altman standing in a lift.
AIOpenAI
The big questions looming over OpenAI’s trillion-dollar IPO
By Beatrice NolanMay 22, 2026
7 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
2 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
AI
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
By Emma BurleighMay 21, 2026
1 day ago
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
Conferences
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.