Apple Opens iPhones to Alternative App Stores in Japan Under New Competition Law
Apple announced on Wednesday that it has opened the iPhone ecosystem in Japan to alternative app marketplaces, complying with new national regulations designed to foster competition in the country’s smartphone sector. The move marks another major adjustment to the company’s tightly controlled App Store model, which has faced increasing global scrutiny.
New Marketplaces and Lower Commissions
Under the revised framework, Japanese developers can now launch their own app marketplaces on iPhones, paying Apple commissions as low as 5% on sales made through those platforms. Developers will also have the option to use their own in-app payment systems for apps distributed via Apple’s App Store. However, Apple stated that its own payment system will continue to operate alongside these alternatives, and developers will still pay a commission for transactions.
For developers that continue to use the App Store, Apple introduced new commission tiers. Links directing users to pay outside of an app will be charged a 15% fee, while standard App Store purchases will incur a 26% commission.
Regulatory Shifts and Security Measures
Japan’s new law is the latest in a series of global efforts to challenge Apple’s dominance in digital app distribution. Regulators in Europe and the United States have also sought to dismantle elements of Apple’s long-standing model, which previously imposed fees of up to 30% on in-app purchases of digital goods and services.
While Japan’s rules share a similar objective with European reforms, they differ in structure. Apple retains the authority to approve any alternative app marketplaces and will continue to require age ratings for all apps, similar to its own App Store policies. Additionally, all apps distributed through third-party marketplaces must undergo a notarisation process — a basic security check conducted by Apple to ensure user safety.
Expanding Hardware Access and Maintaining Security
Beyond software distribution, the new Japanese law obliges Apple to open its iPhone hardware to third-party device makers. However, the company has established an interoperability request system that allows it to reject proposals deemed to compromise user privacy or expose sensitive data.
“Across these changes, Apple has worked to reduce new privacy and security risks the law creates to provide users in Japan the best and safest experience possible,” Apple said in a statement on its blog.
with inputs from Reuters
