Apple : Reshapes iOS Ecosystem in Japan Under New Competition Law
Apple: has introduced a major set of policy and platform changes in Japan as part of its compliance with the country’s Mobile Software Competition Act, a regulation designed to encourage fair competition in the mobile software market. These updates significantly alter how apps are distributed, how digital payments are handled, and how users select default services on iPhones sold in Japan. According to Apple, the changes aim to open the iOS ecosystem while maintaining strong standards for security, privacy, and child safety.
The company has stated that it collaborated closely with Japanese authorities while implementing these reforms and believes that Japan’s approach achieves a more balanced outcome compared to similar frameworks adopted elsewhere. Developers operating in Japan are now able to take advantage of these new rules, with Apple providing documentation and guidance through its official developer channels.
Legal Background and Scope of Changes
The Mobile Software Competition Act officially comes into effect on December 18, and Apple’s response is included in iOS version 26.2, which was released on December 12. These rules apply exclusively to iOS applications available within Japan and do not affect other regions. The legislation focuses on reducing platform dominance while still ensuring that consumers are protected from unsafe or unreliable software.
Apple has emphasized that, unlike some international regulations, Japan’s law does not permit apps to be downloaded directly from websites. This restriction, according to the company, helps minimize security threats that may arise from unregulated app distribution channels.
Introduction of Third-Party App Marketplaces
One of the most significant updates is Apple’s decision to allow third-party app marketplaces on iOS in Japan. Developers can now distribute their apps through alternative marketplaces alongside the official App Store. However, these marketplaces must be approved by Apple and are required to meet ongoing operational and security standards.
Despite the expanded distribution options, Apple will continue to apply its notarisation process to all apps. This system involves automated scans and human verification to ensure apps function correctly and are free from known malware or serious security vulnerabilities. Apple has clarified that notarisation is more limited than a full App Store review and does not involve content moderation for apps distributed outside the App Store environment.
Changes to Digital Payment Rules
Payment flexibility is another core aspect of the update. Developers in Japan can still use Apple’s In-App Purchase system, but they are now permitted to offer third-party payment services or redirect users to external websites for completing transactions related to digital goods and services.
Apple requires developers to present Apple’s payment option alongside alternative methods with equal visibility. When users choose a non-Apple payment option, they will receive a clear notification explaining that refunds and customer support may no longer be handled by Apple. This measure is intended to ensure transparency and help users understand the implications of their payment choices.
Revised Fee Structure for Developers
To support these new distribution and payment options, Apple has introduced an updated fee framework for iOS apps in Japan. Apps distributed through the App Store will pay a commission of either 10 percent or 21 percent on digital sales, depending on their eligibility under Apple’s developer programs or subscription models.
If a transaction is processed using Apple’s In-App Purchase system, an additional 5 percent payment processing fee will apply. For web-based purchases accessed through app links, Apple will charge a store services fee of 15 percent, or 10 percent for qualifying developers. Apps distributed via alternative marketplaces will be subject to a 5 percent Core Technology Commission. Apple maintains that, overall, these revised terms result in equal or lower fees compared to the previous system.
Enhanced Protections for Children and Teens
Apple has also introduced stricter safeguards aimed at protecting younger users. Apps listed in the Kids category will not be allowed to link to external websites for making purchases. For users under the age of 18, any app that uses alternative payment systems must include a parental approval step before a transaction can be completed.
In addition, Apple has stated that apps used by children under 13 will be completely prohibited from linking to external payment websites. Mandatory age ratings will continue to apply across all app distribution channels, ensuring consistent standards regardless of how an app is downloaded.
User Choice and Default App Settings
The update brings noticeable changes to the iPhone setup experience in Japan. During initial setup, users will now be prompted to choose their default browser and search engine, rather than having preselected options. Users can also select a preferred navigation app and designate an alternative app marketplace as their default source for downloading apps.
These preferences are not permanent and can be adjusted later through the Settings app. Apple says this approach gives users greater control over their device experience while aligning with the goals of the new competition law.
Expanded Technical Options for Developers
Beyond distribution and payments, Apple is expanding technical capabilities for developers. Browser developers are now allowed to use non-WebKit engines, provided they comply with Apple’s security and privacy requirements. Developers of voice-based conversational applications can also request access to a new interface that allows their apps to launch using the iPhone’s side button instead of Siri.
Apple has noted that it will review requests for deeper system access on a case-by-case basis and may deny them if they present unacceptable risks to user privacy or platform security.
Conclusion
Apple’s changes in Japan mark a significant shift in how the iOS ecosystem operates within the country. By allowing alternative app marketplaces, expanding payment options, and increasing user choice, the company is responding to regulatory pressure while attempting to preserve the core values of safety and reliability that define its platform. These updates could serve as a model for how large technology companies adapt to evolving competition laws without fully compromising their ecosystem controls.