Apple will allow alternative app stores in Japan and permit developers to process payments for digital goods outside of its own in-app purchase system on iOS. This change is not voluntary; Apple is being forced to comply with Japan’s new Mobile Software Competition Act, which is now going into effect.
With this update, Apple’s App Store revenues are being impacted in another major market due to anticompetition regulations. The company already complies with Europe’s Digital Markets Act, which required similar changes, including allowing alternative app stores.
In the United States, Apple was compelled to change its payment system through the courts following a lawsuit from Epic Games, the maker of Fortnite. Although Apple was not declared a monopoly, the court ruled it must give developers the right to process payments outside of its system. The specifics of that order are still being finalized after an appeal partially reversed an earlier ruling.
In its announcement regarding Japan, Apple warned that alternative app marketplaces and payment systems could open new avenues for malware, fraud, scams, and privacy risks. To mitigate these risks, Apple stated it worked with Japanese regulators to require an authorization process for app marketplaces, called Notarization, which it says is designed to protect children from inappropriate content and scams.
The fact that Apple developed a process to reduce the risks of alternative app stores suggests there has long been a technical solution available to balance openness and security.
As in the European Union, Apple has introduced a complex fee structure to ensure it does not lose significant App Store revenue, while still complying with the law.
Epic Games CEO Tim Sweeney responded to the news, stating Fortnite will still not return to iOS in Japan because Apple is charging a 21% fee on third-party in-app purchases. He criticized Apple, saying the company was required to open iOS to competing stores but instead launched what he called another travesty of obstruction and lawbreaking, showing disrespect to the government and people of Japan.
Sweeney also contrasted Apple’s approach with other game store providers, like Microsoft, questioning the uproar that would occur if Microsoft required all games from Steam and the Epic Games Store to report all transactions back to Microsoft. He stated that is essentially what Apple has announced in Japan.
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.