Tim Sweeney Slams Apple's Japan App Store Move: Still Charging 21% on Third-Party Payments

Apple has been compelled to open iOS to competing app marketplaces in Japan following the enforcement of the Mobile Software Competition Act (MSCA). However, the tech giant’s approach to compliance has drawn sharp criticism from industry figures, particularly Tim Sweeney, CEO of Epic Games.

The core issue centers on Apple’s fee structure for third-party in-app purchases. Rather than eliminating charges on alternative payment processors, Apple is imposing a 21% commission on transactions processed outside its native system. This policy decision has effectively blocked Fortnite’s return to the Japanese App Store in 2025, as promised.

Tim Sweeney’s Public Response

Tim Sweeney didn’t hold back in his critique, characterizing Apple’s implementation as “obstruction and lawbreaking in gross disrespect to the government and people of Japan.” On social media, he highlighted the apparent double standard by comparing Apple’s requirements to a hypothetical scenario: “Can you imagine the uproar if Microsoft required all Steam and Epic Games Store titles to report every transaction back to Microsoft? That’s essentially what Apple just announced in Japan.”

This comparison underscores a fundamental tension between security oversight and fair market access. While Apple frames its “Notarization” authorization process for app marketplaces as a child protection and fraud prevention measure, critics argue it functions as a gatekeeping mechanism that preserves Apple’s revenue dominance.

Regulatory Landscape Expanding

The Japan development reflects a broader pattern of regulatory pressure on Apple’s App Store ecosystem. The European Union’s Digital Markets Act (DMA) similarly forced Apple to permit alternative app stores and payment options. In the United States, Apple’s payment system changes resulted from Epic Games’ legal challenge, though the company successfully resisted a monopoly designation.

Apple has rolled out complex fee structures across these markets—not as a genuine opening of its platform, but as a calculated response to maintain revenue while technically complying with legal requirements. The 21% fee in Japan exemplifies this approach: it’s lower than Apple’s standard 30% commission yet high enough to deter developers from leveraging alternative payment infrastructure.

The Security vs. Open Market Debate

Apple consistently argues that alternative app stores and external payment systems create vulnerabilities to malware, fraud, and privacy breaches. The company’s implementation of a notarization requirement for competing marketplaces does suggest feasible middle-ground solutions exist. Yet the existence of such technical safeguards raises questions: if Apple can enable secure alternative payment processing in Japan, why was this capability not deployed earlier in other markets?

Tim Sweeney’s position reflects a growing consensus among developers that Apple’s security concerns, while worth addressing, should not justify maintaining near-monopolistic control over app distribution and payment processing on iOS devices.

What’s Next

Developers who wish to adopt the new payment options in Japan must agree to updated terms under the Apple Developer Program License Agreement by March 17, 2026. This deadline gives the industry six weeks to evaluate whether Tim Sweeney’s concerns prove justified or whether Apple’s notarization framework successfully balances openness with security.