Apple CEO Raised App Store Curbs Concerns on Japan PM: Report

Apple CEO Tim Cook has asked Japanese Prime Minister Fumio Kishida to consider protecting users when regulating the spread of smartphone apps, Nikkei reported on Friday, citing sources.

Apple was subjected to stricter scrutiny app store Practices that charge and disallow a 30 percent fee on payments and subscriptions iPhones to use app from third-party app stores.

Cook asked Kishida to ensure regulations on app distribution don’t undermine users’ privacy and security, the report added.

Apple and the Japanese Prime Minister’s Office did not immediately respond to Reuters requests for comment.

Earlier this month, Apple announced that it had invested more than $100 billion (nearly Rs. 8,27,100) in its Japanese delivery network over the past five years when Cook visited the country.

Revenue from Apple’s services business, which includes the App Store, has grown rapidly in recent years and now stands at about US$19 billion (nearly Rs.1.57.14 billion) per quarter.

It was reported A few days ago, Apple’s Japanese unit will be charged $98 million (nearly Rs. 810 crore) in additional taxes for bulk sales of iPhones and other Apple devices to foreign tourists mistakenly exempted from consumption tax, said the newspaper Nikkei.

Citing unidentified sources, the Nikkei reported on Tuesday that bulk purchases of iPhones by overseas buyers have been spotted at some Apple stores, with at least one transaction involving a person buying hundreds of phones at once.

In Japan, tourists staying less than six months can purchase items without paying the 10 percent consumption tax, but the exemption does not apply to purchases made for resale purposes.

According to Nikkei, Apple Japan is said to have filed an amended tax return.

In response to a Reuters request for comment, the company said in an email message only that tax-exempt purchases are not currently available in its stores. The Tokyo Regional Taxation Bureau declined to comment.

© Thomson Reuters 2022