Apple Expands Third-Party Payments and App Stores in Japan Under New Law

Apple is making major changes to its iOS platform in Japan. The tech giant will now permit third-party app marketplaces and alternative payment methods for developers there. This significant policy shift was announced this week and takes effect immediately. According to Reuters, the move is a direct response to new Japanese regulations.

The company is complying with Japan’s Mobile Software Competition Act (MSCA). This law is now going into full effect. Apple is not opening its ecosystem by choice but is being forced by this new legislation. The changes mirror similar concessions Apple made earlier in the European Union.

New Rules Come with a Complex Fee Structure for Developers

As in Europe, Apple has introduced a detailed fee structure. This aims to offset potential revenue losses from its App Store. Developers using alternative payment systems will still owe Apple a commission. The company calls this a “payment processing” fee.

This fee is reportedly set at 21% for third-party in-app purchases. Apple argues this complex system is necessary. It says the fees support its intellectual property and platform security. The announcement has already drawn sharp criticism from major developers.

Epic Games CEO Tim Sweeney condemned Apple’s approach. He stated Fortnite will not return to iOS in Japan under these terms. Sweeney called Apple’s compliance a “travesty of obstruction and lawbreaking.”

Security Concerns and Global Regulatory Pressure Intensify

Apple warned that these changes could increase risks for users. It mentioned potential new avenues for malware, fraud, and scams. The company says it worked with Japanese regulators on an authorization process. This “Notarization” process is meant to mitigate these dangers.

The situation highlights the growing global pressure on Apple’s walled garden. The company faces similar mandates under Europe’s Digital Markets Act. In the United States, a court ruling from the Epic Games lawsuit also demands payment alternatives. Apple is navigating a new world of forced openness.

This push from regulators suggests a permanent shift. The technical solutions Apple has developed show a balance between openness and security was always possible. The company’s business model is now adapting under legal duress worldwide.

Apple’s expansion of third-party payments in Japan marks a pivotal moment. It signals how national laws are reshaping global tech power. The era of the exclusive App Store is steadily closing in key markets.

A quick knowledge drop for you

What exactly is changing for iPhone users in Japan?

Japanese iPhone users will soon be able to download apps from alternative app stores, not just Apple’s official App Store. Developers can also use their own payment systems within apps, bypassing Apple’s in-app purchase setup.

Why is Apple making these changes now?

Apple is not making these changes voluntarily. The company is being forced to comply with Japan’s new Mobile Software Competition Act (MSCA). This law aims to increase competition in the mobile software market.

Will Apple still make money from these alternative stores?

Yes. Apple has established a new fee structure. Developers using third-party payment systems will pay Apple a commission, reported to be 21% for digital purchases. This is lower than the standard 30% App Store fee but ensures Apple still collects revenue.

Are there any security risks with these new rules?

Apple has warned that alternative stores could increase risks like malware and scams. To combat this, a new “Notarization” process will require marketplaces to be authorized. This aims to review apps for safety and privacy before they reach users.

Is Epic Games bringing Fortnite back to iPhones in Japan?

No. Epic Games CEO Tim Sweeney has stated Fortnite will not return under Apple’s new terms. He criticized the 21% fee and the requirement for developers to report transactions back to Apple, calling it “commerce surveillance.”