Japan’s new competition law compels Apple to support third-party app stores and new payment freedoms

SAN FRANCISCO — Apple has introduced sweeping policy adjustments in Japan as part of efforts to comply with the country’s newly implemented competition law, officially enabling iPhones to support third-party app stores and offering developers greater autonomy than ever before.

The new legal framework allows Japanese developers to create independent app marketplaces that operate natively on iOS devices. Apple will still receive commissions but at drastically reduced rates, with fees potentially dropping to as little as five per cent based on transaction types and distribution structures.

Developers who remain on Apple’s App Store platform will also see meaningful changes. They will now be allowed to integrate their own in-app payment solutions instead of relying solely on Apple’s payment service. Apple’s payment option will remain in place, but commissions will continue to apply in a revised format.

Japan’s ruling aligns it with Europe and other global regions pushing back against Apple’s historically dominant App Store model. For years, Apple’s 30 per cent commission system has drawn criticism for limiting competition and developer profit margins. While legal battles remain unresolved in the United States, Japan’s decision represents a strong regulatory signal to the industry.

However, Japan’s system remains more controlled than Europe’s open-ended approach. Apple will maintain the authority to assess and approve alternative app marketplaces before they begin operations. Applications hosted on such platforms must include age ratings, mirroring Apple’s existing standards.

Security safeguards remain integral to Apple’s compliance efforts. Every app distributed outside the App Store will undergo notarisation — a structured security review to prevent harmful software. Developers providing external payment links through the App Store will be charged a 15 per cent fee, whereas standard App Store purchases will incur a 26 per cent fee.

The Japanese law also requires Apple to enable hardware interoperability with third-party manufacturers to an extent. Nevertheless, Apple retains discretionary power to reject proposals that threaten privacy or risk exposing confidential user information.

Apple stressed that despite regulatory shifts, maintaining user trust, privacy and safety remains central. The company noted that it has carefully balanced innovation, compliance and consumer protection throughout the transition.

Industry observers say Japan’s decision could redefine the nation’s digital marketplace, broadening developer freedom, intensifying competition and offering users more meaningful choices. It may also strengthen global momentum toward increased technological openness and reduced platform dominance.

emchosting.com/