Apple Opens App Store to Competition in Japan

Apple is opening its App Store to alternative app marketplaces and third-party payment systems in Japan, a move mandated by the country's new Mobile Software Competition Act (MSCA). This change, which recently went into effect, marks another significant market where Apple is being compelled by antitrust regulations to loosen its grip on its digital ecosystem. The tech giant had previously made similar concessions in Europe due to the Digital Markets Act (DMA) and faced court-ordered changes to its in-app payment system in the U.S. following a lawsuit from Epic Games.

Japan's New Regulations

The iPhone maker's decision in Japan isn't voluntary; it's a direct response to the MSCA. This legislation requires Apple to allow developers to offer alternative app stores and process payments for digital goods and services outside of Apple's proprietary in-app purchase system on iOS. Apple announced these changes, impacting its App Store revenues in another major market due to anticompetition laws and regulations.

Global Antitrust Pressure on Apple

Globally, Apple has been under increasing pressure regarding its App Store policies. In Europe, the Digital Markets Act already forced the company to permit alternative app stores and implement other changes. In the U.S., a lawsuit brought by Fortnite creator Epic Games led to a court ruling that Apple must allow developers to process payments externally. While Apple was not declared a monopoly, the court decided developers should have the right to process payments outside its system. The specifics of that order are still being finalized after an appeal partially reversed an earlier decision.

As it has done with similar changes elsewhere, Apple issued a warning in its announcement about the Japanese updates, cautioning that alternative app marketplaces and payment methods could introduce "new avenues for malware, fraud, scams, and privacy and security risks." To address these concerns, Apple stated it collaborated with Japanese regulators to establish an authorization process for app marketplaces, dubbed "Notarization." The company claims this process is specifically designed to protect children from inappropriate content and scams. The existence of such a mitigation process suggests that a technical solution to balance openness and security has always been feasible.

Despite these concessions, Apple appears to be implementing a complex fee structure, similar to its approach in the EU, to minimize the impact on its App Store revenue while technically complying with the new laws.

Epic Games' Strong Criticism

Epic Games CEO Tim Sweeney was quick to voice his disapproval. In a post on X (formerly Twitter) on December 18, 2025, Sweeney declared that Fortnite would still not return to iOS in Japan. He criticized Apple for imposing a 21% fee on third-party in-app purchases, calling Apple's response "another travesty of obstruction and lawbreaking in gross disrespect to the government and people of Japan."

Sadly, Fortnite will not return to iOS in Japan in 2025 as promised. 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… pic.twitter.com/7hu5eGMQX6

— Tim Sweeney (@TimSweeneyEpic) December 18, 2025

Sweeney further highlighted the perceived disparity between Apple and other gaming platform providers like Microsoft. He questioned, "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?" He concluded, "That’s what Apple just announced in Japan."

Developers wishing to utilize these new options in Japan must agree to the latest update to the Apple Developer Program License Agreement, which includes the new options for Japan, by March 17, 2026.