On Wednesday, December 17th, Apple announced that they would be opening up the iOS system in Japan to support third-party app stores, allowing developers to use payment methods other than Apple’s App Store system for transactions involving digital content and services. This move by Apple is not a proactive one but rather a response to comply with the soon-to-be-effective Mobile Software Competition Act (MSCA) in Japan.
This update has once again impacted Apple’s App Store revenue in significant markets due to antitrust laws. Previously, Apple was forced to open up third-party app stores in Europe and make several system adjustments due to the Digital Markets Act (DMA) from the European Union.
In the United States, Apple was required by the court to provide external payment options due to a lawsuit from Epic Games, the developer of Fortnite. While the court did not find Apple guilty of monopolistic behavior, it ruled that developers have the right to choose not to process transactions through Apple’s payment system. The specifics of this order are still under discussion.
When Apple announced the new policy in Japan, they warned that third-party app stores and payment methods could create new avenues for malicious software, fraud, scams, as well as privacy and security risks.
To address these concerns, Apple stated that they have collaborated with Japanese regulatory authorities to require third-party app stores to go through a notarization process to protect children from inappropriate content and fraud.
Observers note that Apple’s proposal of related technology and management mechanisms demonstrates its long-standing ability to find a feasible balance between openness and security. Similar to the situation in the European Union, Apple has designed a complex fee structure in Japan to ensure that its App Store does not suffer significant revenue losses while also complying with legal requirements.
Tim Sweeney, the CEO of Epic Games, expressed strong dissatisfaction with this decision. He has consistently advocated for genuine competition on platforms and opposes Apple’s high control over third-party app stores and payment mechanisms. Sweeney mentioned that due to Apple’s 21% fee on in-app purchases made through third-party apps, Fortnite still won’t be available on the iOS platform in Japan.
He took to the social platform X to voice his discontent, stating, “Apple has been asked today to open up the iOS system to other app stores, but instead of being transparent, they once again staged a disruptive and illegal drama, blatantly disrespecting the Japanese government and people.”
Sweeney believes that if other platforms, such as Microsoft, were to take similar actions as Apple in Japan against competitors, it would surely cause a huge uproar; however, Apple is attempting to package this highly monitored handling of competitor transactions as compliant measures, which is exactly what they just announced in Japan, he said.
Apple, on the other hand, has stated that developers must agree to the latest updated Apple Developer Program License Agreement by March 17, 2026, in order to utilize the new option tailored for Japan.