Apple is changing how iPhone apps can be distributed and paid for in Japan, and it’s a big shift for anyone who follows iOS, the App Store, and mobile competition laws. The company says it will allow alternative app stores in Japan and will let developers handle payments for digital goods and services outside Apple’s in-app purchase system. This isn’t Apple voluntarily opening up its ecosystem, though. The move is aimed at complying with Japan’s Mobile Software Competition Act (MSCA), which is now taking effect.
Japan becomes the latest major market where Apple’s App Store business model is being pressured by regulations designed to curb anti-competitive behavior. Apple has already had to make similar adjustments in Europe under the Digital Markets Act, which pushed the company to permit alternative app marketplaces and introduce other changes to how iOS works. Now Japan is joining the list of regions forcing Apple to loosen its traditional grip on app distribution and payments.
The pressure isn’t limited to lawmakers and regulators. In the United States, Apple has also been pushed toward change through the court system after legal action from Epic Games, the company behind Fortnite. While the court did not label Apple a monopoly, it did determine Apple must give developers the option to direct users to payment methods outside Apple’s system if they choose. The final details have been complicated by appeals and evolving rulings, but the direction is clear: developers want more control over how money moves through their apps, and governments and courts are increasingly backing that demand.
As with past policy changes, Apple is emphasizing safety and risk. In its Japan announcement, Apple warned that alternative app marketplaces and outside payment methods could create “new avenues for malware, fraud, scams, and privacy and security risks.” To address those concerns, Apple says it worked with Japanese regulators on an authorization requirement for app marketplaces, using a process it refers to as Notarization. Apple claims this approach is meant to better protect users, including children, from inappropriate content and scams.
That detail is likely to fuel an ongoing debate: if Apple can design a system that supports alternative app stores while trying to maintain strong security controls, then some critics argue there has always been a technical middle ground between openness and safety. In other words, this suggests iOS could have supported more competition without abandoning user protection—if Apple had chosen to implement it earlier.
Still, Apple’s approach in Japan, like its approach elsewhere, includes a complicated fee structure that appears intended to preserve App Store revenue even as the rules evolve. While Apple is technically allowing other payment options, it’s also setting terms that may limit how attractive those options are for developers.
Epic Games CEO Tim Sweeney responded strongly, arguing that Apple’s new Japan rules don’t go far enough to enable real competition. He said Fortnite still will not return to iOS in Japan, pointing to Apple’s 21% fee on third-party in-app purchases as a key reason. Sweeney accused Apple of using the new framework to block competitors rather than welcome them, and he compared Apple’s approach to what he believes would be unacceptable behavior from other major platform holders.
Apple, for its part, noted that developers will need to agree to an updated Apple Developer Program License Agreement that includes the new Japan-related options. Developers have until March 17, 2026 to accept the updated terms.
For iPhone users and app developers in Japan, the changes could eventually mean more choice—more ways to get apps, and more payment options inside apps. But the real impact will depend on how Apple enforces its new requirements, how high the effective fees remain, and whether alternative app stores can compete meaningfully under the rules Apple has set.
