Apple CEO Tim Cook has raised concerns about App Store restrictions with Japanese Prime Minister: report
Apple Chief Executive Tim Cook has asked Japanese Prime Minister Fumio Kishida to consider protecting users when regulating the distribution of smartphone apps, Nikkei reported Friday citing sources.
Apple has come under scrutiny over its App Store practices, which charge 30% fees on payments and subscriptions and don’t allow iPhones to use apps from third-party app stores .
Cook asked Kishida to ensure that app distribution regulations do not compromise user privacy and security, the report adds.
Apple and the Japanese Prime Minister’s Office did not immediately respond to requests for comment from Reuters.
Earlier this month, Apple said it had invested more than $100 billion (almost Rs. 8,27,100 crore) in its Japanese supply network over the past five years as Cook visited the country.
Revenue from Apple’s Services business, which includes the App Store, has grown at a rapid pace over the past few years and now stands at around $19 billion (almost Rs. 1,57,144 crore) per quarter.
It was reported a few days ago that Apple’s Japanese unit is being charged $98 million (nearly Rs. 810 crore) in additional taxes for wholesale sales of iPhones and other Apple devices to foreign tourists who were wrongly exempted from consumption tax, the Nikkei newspaper told me.
Citing unidentified sources, the Nikkei reported Tuesday that bulk purchases of iPhones by overseas buyers have been uncovered at select Apple stores with at least one transaction involving an individual purchasing hundreds of handsets at a time.
Japan allows tourists staying for less than six months to purchase items without paying the 10% consumption tax, but the exemption does not apply to purchases for resale.
Apple Japan reportedly filed an amended tax return, according to Nikkei.
In response to a request for comment from Reuters, the company only said in an email message that tax-exempt purchases were not currently available in its stores. The Tokyo Regional Tax Bureau declined to comment.
© Thomson Reuters 2022
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