Apple announced that it will comply with Japan’s Mobile Software Competition Act, allowing iOS devices in the country to host alternative app stores and enabling developers to process payments outside Apple’s in‑app purchase system.
Under the new fee structure, Apple will charge 10% for developers in the Small Business, Video Partner, and Mini Apps Partner programs and 21% for other developers on the App Store; an additional 5% fee applies to in‑app purchases processed through Apple. For apps distributed outside the App Store, a 5% Core Technology Commission applies, while web‑linked transactions incur a 15% commission (10% for program participants). These rates replace the former 30% flat fee.
Apple introduced a notarization process for all iOS apps in Japan, a baseline security check that scans for malware and verifies functionality. Unlike the full App Review, notarization is less comprehensive but still requires automated checks and human review, balancing openness with security.
The new rules also require Apple to provide parental safeguards—parental gates and restrictions on web‑linked transactions for users under 13—and to present users with browser and search engine choice screens during device setup. Apple views the MSCA as a more favorable framework than the EU Digital Markets Act because it allows Apple to approve marketplaces and deny interoperability requests that could expose user data.
From a business perspective, the changes are expected to reduce Apple’s App Store revenue in Japan, but they also broaden the developer ecosystem and give consumers more choice. The lower commission rates for alternative distribution could attract developers who previously avoided the App Store, potentially increasing app volume. However, the complexity of the fee structure and the reduced security scrutiny of notarization may pose operational challenges for both Apple and developers.
Overall, the move signals Apple’s willingness to adapt its ecosystem to local regulatory requirements while maintaining control over marketplace approval and data privacy. The regulatory compliance is a significant shift in Apple’s business model in Japan, with implications for revenue, developer relations, and competitive dynamics.
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