Japan's App Store Opening Signals Shift in Apple's Regulatory Battles Worldwide

Apple is unveiling a significant policy reversal in Japan: the tech giant will now permit third-party app marketplaces and enable developers to handle payments outside its proprietary in-app purchase system on iOS devices. However, this concession isn’t voluntary—it’s a direct result of Japan’s Mobile Software Competition Act (MSCA) taking effect, marking another instance where regulatory pressure is reshaping Apple’s business model across major economies.

This move follows a similar pattern globally. The European Union’s Digital Markets Act (DMA) has already forced Apple to implement comparable changes in EU markets. In the United States, Epic Games’ legal challenge against Apple resulted in court orders requiring the company to offer developers alternative payment processing options, though the specifics continue to evolve through ongoing appeals.

The Security Argument and Its Limitations

Apple has long maintained that opening its ecosystem poses security threats. In Japan’s case, the company emphasized potential risks including malware, fraud, scams, and privacy violations. To address these concerns, Apple coordinated with Japanese regulators to establish a “Notarization” authorization system for alternative app marketplaces, specifically designed to shield users—particularly minors—from inappropriate content and fraudulent schemes.

Yet this technical framework reveals something significant: Apple has possessed the capability to balance openness with security all along. The existence of a workable solution in Japan demonstrates that claims about fundamental incompatibility between competition and safety may have been overstated in previous regulatory disputes.

The Revenue Protection Strategy

Rather than genuinely embracing openness, Apple has constructed a complex fee arrangement to minimize revenue loss. Third-party app stores operating in Japan face a 21% commission on in-app purchases processed through alternative payment systems—a figure that continues to draw criticism from developers and competitors alike.

Tim Sweeney of Epic Games articulated this frustration directly. He announced that Fortnite will not return to iOS in Japan during 2025, characterizing Apple’s approach as obstructionist despite regulatory requirements. “Apple was required to open up iOS to competing stores today, and instead of doing so honestly, they have launched another travesty of obstruction and lawbreaking,” Sweeney stated on social media.

He further highlighted the double standard by drawing a pointed comparison: “Can you imagine the uproar if Microsoft required all games from Steam and Epic Games Store to report every transaction back to Microsoft through its own surveillance API? That’s precisely what Apple has implemented in Japan.”

A Pattern Across Markets

These developments underscore a broader trend: Apple’s business model faces sustained pressure from multiple regulatory frameworks acting independently. Whether through Japan’s MSCA, Europe’s DMA, or U.S. litigation, governing bodies worldwide are compelling Apple to reconsider its closed ecosystem approach. In each case, the company has sought to comply minimally while preserving revenue streams.

Apple has set March 17, 2026, as the deadline for developers to accept the updated Apple Developer Program License Agreement, which incorporates the new options for the Japanese market. Whether this approach will satisfy regulators or merely postpone further regulatory action remains to be seen.