Apple will now allow alternative app stores in Japan and permit developers to bypass its in-app purchase system for digital goods and services. This significant shift comes as the tech giant navigates increasing regulatory pressure globally, specifically to comply with Japan’s Mobile Software Competition Act (MSCA). The changes, announced recently, mark another instance of Apple adjusting its policies in response to antitrust concerns and competition laws.
The move follows similar concessions made in Europe due to the Digital Markets Act (DMA) and a U.S. court ruling stemming from a lawsuit with Epic Games. These developments signal a growing trend of governments challenging Apple’s control over its ecosystem and the associated revenue streams.
The Impact of Japan’s New Regulations on App Stores
Japan’s MSCA is now in effect, forcing Apple to open its iOS platform to greater competition. Previously, developers were required to distribute apps exclusively through the Apple App Store and utilize Apple’s in-app purchase system, which charges a commission on sales. Now, developers can offer their apps through alternative marketplaces and process payments directly, potentially avoiding those fees.
However, Apple is implementing measures to mitigate perceived risks associated with this increased openness. The company has established a mandatory “Notarization” process for alternative app marketplaces, requiring authorization from Apple. This is intended to protect users, particularly children, from malicious software and inappropriate content, according to the company’s announcement.
Balancing Security and Openness
Apple argues that alternative marketplaces and payment systems introduce vulnerabilities to malware, fraud, and privacy breaches. The Notarization process is presented as a safeguard against these threats. Interestingly, the implementation of such a process suggests that Apple had technical solutions available to address security concerns even while maintaining a closed ecosystem. This has led some observers to question the original justification for its restrictive policies.
Additionally, Apple has introduced a complex fee structure designed to minimize the financial impact of these changes. While developers can now process payments outside of the App Store, Apple will still collect a commission on those transactions, albeit at a potentially lower rate than its standard in-app purchase fee. The specifics of these fees are drawing scrutiny from developers and regulators alike.
Developer Reactions and Ongoing Disputes
The response from developers has been mixed. Epic Games CEO Tim Sweeney, whose company initiated the legal battle in the U.S., criticized Apple’s implementation in Japan, stating that the 21% fee on third-party in-app purchases effectively negates the benefits of opening the platform. Sweeney announced that Fortnite will not return to iOS in Japan under these conditions.
Sweeney further contrasted Apple’s approach with that of other platform holders, such as Microsoft, questioning why Apple insists on monitoring and reporting all transactions through its commerce API. He argues this creates an unnecessary level of surveillance and control.
Meanwhile, other developers are cautiously optimistic, hoping that the increased competition will lead to lower fees and greater flexibility. The long-term effects on developer revenue and the overall app ecosystem remain to be seen.
The Broader Trend of Antitrust Scrutiny
Apple’s concessions in Japan are part of a larger global trend of increased antitrust scrutiny of big tech companies. The European Union’s DMA is forcing significant changes to Apple’s practices, including allowing users to sideload apps and enabling interoperability between messaging services. In the United States, while Apple avoided being labeled a monopoly in the Epic Games case, the court did require the company to allow developers to offer alternative payment options.
These regulatory challenges are prompting Apple to reassess its business model and adapt to a more competitive landscape. The company is attempting to strike a balance between complying with the law and protecting its revenue streams and control over its platform.
Developers will need to agree to the updated Apple Developer Program License Agreement, which incorporates these new options for Japan, by March 17, 2026. The coming months will be crucial as developers evaluate the new rules and determine the best strategies for their businesses. Further legal challenges and regulatory interventions are also possible, particularly regarding the fairness and transparency of Apple’s new fee structure. The evolving situation will continue to shape the future of the app economy and the relationship between Apple and its developer community.
The effectiveness of Japan’s MSCA and its impact on the mobile market will be closely watched by regulators and industry observers worldwide.
