Apple Now Allows Alternative App Stores and Payment Systems on iOS in Japan

Apple announced today that it’s making changes to how iOS and the App Store work in Japan to comply with the country’s Mobile Software Competition Act (MSCA). The company now allow iOS users in Japan to download apps from alternative app stores, which will still need to be authorized by Apple. The company is also allowing alternative payment options for App Store apps in the country, and it’s also into introducing default controls for navigation apps and app marketplaces, similar to what it previously did in the EU.

As usual with Apple’s policy changes, you need to read between the lines to see that the company will remain in control of what developers and iOS users can do. First of all, apps distributed outside of the App Store will ned to be “notarized” to ensure that they don’t include inappropriate content and scams. Apple will also take a 5% cut on all in-app purchases happening in these apps.

For iOS apps still distributed in Apple’s App Store, developers can now include an alternative payment processing method and/or link users to a website to complete a transaction. Apple will still take a cut of up to 15% on transactions for digital goods and services made on a website linked to by the developer’s app. The company will also take an up to 21% cut on in-app purchases going through an alternative payment system.

“Under these new business terms, developers that sell digital goods and services in Japan will pay Apple the same or less than they do today. Developers that do not sell digital goods and services will continue not to pay Apple any commissions or fees,” the company emphasized today.

This had to be expected, but Epic Games CEO Tim Sweeney, one of the most vocal critics of Apple’s walled garden, pointed out that Apple’s new App Store policies in Japan are still unfair to developers. “They’re charging a competition-crushing 21% junk fee on third-party in-app payments, and 15% for purchases made on the web,” Sweeney posted on X. “They’re imposing a new 5% junk fee on all revenue from apps distributed by competing stores, and intend to surveil all transactions within them using a mandatory reporting API,” the exec continued.

Despite Apple’s updates to comply with local laws, Epic Games CEO also stated that Fortnite will not return to iOS users in Japan. “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 in gross disrespect to the government and people of Japan,” Sweeney said today.