Apple announced It will enable alternative app stores in Japan and allow developers to process payments for digital goods and services outside of its own in-app purchasing system on iOS. The iPhone maker isn’t making these changes because it wants to be more open; is being forced, in this case, to comply with the country’s Mobile Software Competition Act (MSCA), which is now coming into effect.
With this updateApple’s App Store revenue is taking a hit in another major market due to anti-competitive laws and regulations. The company already has to comply with Europe’s Digital Markets Act (DMA), which previously required the tech giant allow alternative app stores and other changes.
In the US, Apple has been forced to change its payment system through the courtsafter a lawsuit from Fortnite maker Epic Games. Although it was not declared a monopoly, the court decided that Apple needed to give developers the right to process payments outside of its system if they wanted to. (Details around that order are still being worked out after an appeal partially overturned an earlier ruling.)
As usual, in its announcement about the changes in Japan, Apple warned that alternative payment and app markets open “new avenues for malware, fraud, scams, and privacy and security risks.” To mitigate those risks, the company said it worked with Japanese regulators to require an authorization process for app marketplaces (“Notarization”), which it says is designed to protect children specifically from inappropriate content and scams.
The fact that Apple has devised a process to reduce the risk of alternative app stores indicates that there has always been a technical solution available to balance the needs of both openness and security.
As in the EU, Apple has devised a complex fee structure to ensure it doesn’t lose much in the way of revenue from the App Store, while apparently following the letter of the law.
Epic Games CEO Tim Sweeney, of course, was not silent on this matter and said that Fortnite will not yet return to iOS in Japan because Apple is charging a 21% fee for third-party in-app purchases.
In a post on X, he wrote“Apple had to open up iOS to competing stores today, and instead of doing it honestly, they have released another travesty of obstruction and law breaking in blatant disrespect to the government and people of Japan. Apple chose wrong. Again.”
He also pointed out the difference between Apple and other game store providers, such as Microsoft, by asking: “Can you imagine the uproar from gamers and regulators that would occur if Microsoft required all games on Steam and the Epic Games Store to call its Trade Surveillance API and report all transactions to Microsoft?”
“That’s what Apple just announced in Japan,” he added.
Apple noted that developers will need to accept the latest update to the Apple Developer Program License Agreement, which includes the new options for Japanbefore March 17, 2026.
