Apple Opens Japan’s iOS Ecosystem to Rival App Stores Under New Competition Law
Apple is making significant changes to how its App Store operates in Japan, allowing alternative app marketplaces and enabling developers to handle payments for digital goods and services outside Apple’s in-app purchase system. The move is not voluntary; it is a direct response to Japan’s newly enforced Mobile Software Competition Act (MSCA), which compels platform operators to reduce anti-competitive practices.
Regulatory Pressure Drives Change
The iPhone maker confirmed that it will now permit third-party app stores on iOS in Japan and allow developers to use external payment methods. These adjustments come as the MSCA takes effect, forcing Apple to modify long-standing App Store rules.
Japan now joins a growing list of major markets where Apple’s App Store business model is being reshaped by regulation. In Europe, the company has already been required to implement similar changes to comply with the Digital Markets Act (DMA), including support for alternative app stores and new distribution options.
A Global Pattern of Legal Challenges
Regulatory scrutiny is not limited to Japan and the European Union. In the United States, Apple has also been compelled to revise aspects of its in-app payment system following legal action brought by Epic Games, the creator of Fortnite. While the court stopped short of declaring Apple a monopoly, it ruled that developers must be given the option to process payments outside Apple’s system if they choose. The finer details of that ruling remain in flux after a partial reversal on appeal.
Together, these developments illustrate a global shift toward tighter oversight of dominant digital platforms and their control over app distribution and payments.
Apple Raises Security Concerns
As with previous regulatory-driven changes, Apple emphasized potential risks associated with opening iOS to alternative marketplaces and payment systems. In its Japan announcement, the company cautioned that such changes create “new avenues for malware, fraud, scams, and privacy and security risks.”
To address these concerns, Apple said it has worked closely with Japanese regulators to introduce an authorization process for third-party app marketplaces, referred to as “Notarization.” According to the company, this process is intended to protect users—particularly children—from inappropriate content and scams.
The introduction of this safeguard suggests that technical mechanisms to balance platform openness with security have long been feasible, despite Apple’s historical resistance to such changes.
Fees Remain a Point of Contention
As it has done in Europe, Apple has also implemented a complex fee structure in Japan, designed to preserve much of its App Store revenue while technically complying with the law. This approach has drawn sharp criticism from Epic Games CEO Tim Sweeney, who confirmed that Fortnite will not return to iOS in Japan due to Apple’s fees.
Sweeney stated that Apple is charging a 21% fee on third-party in-app purchases, making the economics unattractive for developers. In a post on X, he wrote:
“Apple was required to open up iOS to competing stores today, and instead of doing so honestly, they have launched another travesty of obstruction and lawbreaking in gross disrespect to the government and people of Japan. Apple chose poorly. Again.”
He further contrasted Apple’s approach with that of other platform operators, adding:
“Can you imagine the gamer and regulator uproar that would ensue if Microsoft required all games from Steam and Epic Games Store to call its commerce surveillance API and report all transactions back to Microsoft?”
“That’s what Apple just announced in Japan.”
Deadlines for Developers
Apple also confirmed that developers wishing to take advantage of the new options in Japan must agree to the updated Apple Developer Program License Agreement. The deadline to accept these new terms is March 17, 2026.
A Shifting App Store Landscape
Japan’s MSCA marks another step in the gradual unravelling of Apple’s tightly controlled App Store model. While Apple continues to argue that its approach is essential for user security and privacy, regulators worldwide are increasingly insisting on greater competition and choice. How these changes ultimately affect developers, consumers, and Apple’s services revenue will be closely watched across the global tech industry.
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