Apple Opens Up Its App Store to Competition in Japan

Apple announced it will allow alternative app stores in Japan and will permit developers to process payments for digital goods and services outside its iOS in-app purchase system. The iPhone maker is not making these changes because it wants to be more open; it’s being forced, in this case, to comply with the country’s Mobile Software Competition Act (MSCA), which is now taking effect.

With this update, Apple’s App Store revenues are being affected by another primary market due to antitrust laws and regulations. The company already has to comply with Europe’s Digital Markets Act (DMA), which previously required the tech giant to allow for alternative app stores and other changes.

In the U.S., Apple has been forced to change its in-app payment system through the courts after a lawsuit from Fortnite maker Epic Games. Although it was not declared a monopoly, the court ruled that Apple must allow developers to process payments outside its system if they choose. (The specifics around that order are still being worked out after an appeal partially reversed an earlier ruling.)

As usual, in its announcement about the changes in Japan, Apple warned that alternative app marketplaces and payments 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 authorisation process for app marketplaces (“Notarization”), which it says is designed to protect children specifically from inappropriate content and scams.

The fact that Apple has developed a process to reduce risk for alternative app stores indicates that there has always been a technical solution to balance the needs for both openness and security.

As in the EU, Apple has developed a complex fee structure to avoid significant loss of App Store revenue, while seemingly complying with the letter of the law.

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

Epic Games CEO Tim Sweeney, of course, was not silent on this matter, saying Fortnite will not return to iOS in Japan because Apple charges a 21% fee on third-party in-app purchases. 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 also pointed out the difference between Apple and other game store providers, like Microsoft, by asking, “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,” he added.

Apple noted that developers must agree to the latest update to the Apple Developer Program License Agreement, which includes the new options for Japan, by March 17, 2026.