Updated: December 19, 2025 — Japan’s long-anticipated Mobile Software Competition Act (MSCA) is now in full effect, and the first real-world impact is landing on phones. Apple has begun rolling out iOS 26.2 changes in Japan that allow alternative app marketplaces and expanded payment options, while Google is introducing search and browser choice screens and broadening programs that let developers offer billing alternatives. [1]
The regulatory push is aimed at loosening the grip of dominant mobile platforms on app distribution, default services, and in-app payments—a debate that has already reshaped app ecosystems in Europe and is increasingly spilling into other major markets. [2]
What’s happening in Japan today
Japan’s competition regulator has positioned the MSCA as an effort to create a more competitive smartphone software environment—covering key “specified software” like mobile operating systems, app stores, browsers, and search engines—while still emphasizing security. The Japan Fair Trade Commission (JFTC) notes the Act entered full effect on December 18, 2025. [3]
Japanese media reporting on the law’s enforcement says the rules prohibit Apple and Google from blocking other companies’ payment services, allow app distributors to steer users to external payment services, and include penalties for violations. It also reports that Apple set fees “up to 15%” for external payments while Google set fees “up to 20%,” a sharp contrast to the prior era of commissions that could reach 30%. [4]
Apple’s iOS 26.2 changes in Japan: alternative app marketplaces, new payment flows, and more defaults
Apple’s core message is simple: Japan’s MSCA is forcing a more open iPhone environment—and Apple is trying to do it without turning iOS into a malware magnet.
In its Japan-specific announcement, Apple says MSCA-driven changes create “new options” for developers to distribute apps and process payments outside Apple’s in-app purchase system, alongside new safeguards such as Notarization and a formal authorization process for alternative marketplaces. These changes are tied to the iOS 26.2 release. [5]
1) Alternative app marketplaces are now allowed—but only if Apple authorizes them
Under the new rules, developers can distribute iOS apps in Japan through alternative app marketplaces (in addition to the App Store). But Apple says these marketplaces must be authorized by Apple and meet ongoing requirements. [6]
Apple also emphasizes that apps downloaded outside the App Store won’t necessarily benefit from the same protections of App Review, and it is leaning on a baseline screening system—Notarization—to reduce the risk of malware and fraud. [7]
What is Notarization on iOS in Japan?
Apple describes Notarization as a baseline review using automated checks and human review to help ensure apps are free of known malware and meet basic integrity expectations. The developer documentation also says Apple can prevent an app from launching and revoke new installs if it later finds known malware. [8]
2) App Store apps can offer alternative payments or link out—Apple still takes a cut
For apps that stay in Apple’s App Store in Japan, Apple now provides tools to let developers:
- include an alternative payment processing method inside the app, and/or
- link users to a website to complete a transaction,
but Apple says these options must appear alongside Apple In‑App Purchase so users can clearly see when they’re paying through Apple versus a third party. [9]
Apple also warns that if users pay outside Apple’s system, Apple may not be able to provide refunds or support at the same level as with Apple In‑App Purchase. [10]
3) Apple’s Japan fee structure: how the new commissions break down
Apple’s updated business terms for Japan split what used to be “one commission” into multiple components, depending on how an app is distributed and how the user pays.
From Apple’s press release and developer terms for Japan:
- App Store commission: generally 10% for many developers (including Small Business Program and some subscriptions after the first year) or 21% on transactions for digital goods/services. [11]
- Apple payment processing fee:+5% if the developer uses Apple In‑App Purchase. [12]
- Store services commission for web-linked purchases:15% on transactions made on a website linked from the app (reduced to 10% for certain developers/subscriptions). Apple’s developer terms specify this applies to relevant purchases made within a defined window after the link tap. [13]
- Core Technology Commission (CTC):5% for iOS apps distributed outside the App Store (including via alternative marketplaces) on sales of paid apps and digital goods/services. [14]
Reuters also framed the new “standard” App Store purchase fee as 26%, and Apple’s published structure explains why: for many developers, 21% commission + 5% payment processing totals 26% if Apple In‑App Purchase is used. [15]
4) New screens and defaults: browser choice, search choice, and even app marketplace defaults
Beyond payments and app stores, Apple’s MSCA response includes settings changes that users in Japan will notice:
- Apple says iOS 26.2 introduces a browser choice screen and a search engine choice experience, plus new default controls for navigation apps and app marketplaces. [16]
- Apple’s developer support page adds more detail: users in Japan will see a browser choice screen the first time they launch any web browser, and Safari users will see a search engine choice screen on Safari’s Start Page. [17]
- Apple also says developers of browser apps can use alternative browser engines (not just WebKit) under strict security and privacy requirements. [18]
5) Child safety guardrails are explicitly built into the Japan rollout
Apple devotes a significant portion of its Japan announcement to kid safety, saying alternative distribution and payments can create new risks for younger users. Among the measures Apple highlights:
- Kids-category apps won’t include links to web transactions.
- For users under 18, App Store apps using alternative payments or web links must include a “parental gate.”
- For users under 13, App Store apps can’t link to websites for transactions. [19]
Google’s MSCA response: search/browser choice screens and broader billing options
Google’s announcement focuses on two areas: defaults/choice and billing flexibility.
In a Japan-focused post tied to the law coming into force for designated companies, Google says consumers and businesses will see the following major changes:
- Choice screens prompting users to select a search engine and browser. Google says these will appear on Android phones in Japan and also in the Chrome app on iOS. [20]
- Alternative in-app billing expansion: Google is expanding its User Choice Billing program—previously available to non-gaming apps in Japan—to all apps offering in-app purchases of digital content to Japanese users. [21]
- Buying digital content outside Google Play: Google says it is launching a program that allows a side-by-side choice between Google Play Billing and completing the purchase on the developer’s website, with a “competitive fee offering” and safety/security requirements. [22]
Google also points out that Android already permits third-party app stores and switching defaults, framing many MSCA obligations as consistent with Android’s existing model. [23]
Separately, Google’s own Android explainer page notes that search and browser choice screens will begin appearing on new and existing devices distributed in Japan from December 2025, and it describes how the browser choice screen installs and sets a selected browser as default. [24]
The first market reaction: AltStore launches fast, while Fortnite stays out—at least for now
Regulations change policy on paper, but app marketplaces change habits. Within about a day of Apple enabling alternative marketplaces, at least one notable third-party store moved quickly.
AltStore PAL launches in Japan
MacRumors reports that AltStore PAL—already operating in the EU—has now launched in Japan following Apple’s MSCA-driven changes. According to the report, users must be physically located in Japan, have a Japanese App Store account, and run iOS 26.2 or later to use it. [25]
The same report notes Apple requires marketplace apps to pay a 5% Core Technology Commission, and that alternative marketplaces must be authorized by Apple and distribute apps that have been notarized. [26]
Epic pushes back: Fortnite still won’t return to iOS in Japan
Not everyone sees Japan’s “opening” as truly open.
The Verge reports that Epic Games CEO Tim Sweeney has pointed to Apple’s warning screens and fee structure in arguing that the changes still discourage competition—and says Fortnite isn’t expected to return to iOS in Japan yet. [27]
What this means for iPhone users in Japan
If you’re an iPhone user in Japan updating to iOS 26.2, the practical changes come down to three things:
- More places to get apps: alternative app marketplaces are now possible, though authorized by Apple and tied to notarization rules. [28]
- More ways to pay: some App Store apps can offer alternative payment processing or web checkout—often with disclosures and with Apple In‑App Purchase still present as an option. [29]
- More default choices: browser and search choice screens appear in new places, and default app controls expand. [30]
Apple is also explicitly warning users that non‑App Store distribution can increase exposure to scams, fraud, or objectionable content—an argument Apple has leaned on heavily in similar regulatory debates elsewhere. [31]
What this means for developers and app businesses
For developers selling into Japan, the MSCA moment is both opportunity and complexity.
Opportunities
- New distribution routes (alternative marketplaces) and new payment pathways (in-app alternative payment processing and web checkout links). [32]
- Potentially lower costs for some models—e.g., Apple’s 5% CTC for outside-App-Store digital goods sales compared to traditional “30% era” economics. [33]
- On Android/Google Play, broader eligibility for alternative billing in Japan and new side-by-side purchase options. [34]
New friction
- More compliance steps (marketplace authorization, notarization workflows, reporting obligations, child-safety rules, and clearer disclosure experiences). [35]
- A more fragmented fee landscape: App Store commission + processing fee, web-linked commissions, and separate outside-store commissions depending on channel. [36]
Why this is bigger than Japan: a global regulatory wave keeps tightening
While Apple and Google are treating Japan as a country-specific compliance project, the MSCA fits a clear global pattern: regulators are trying to pry open mobile ecosystems without breaking consumer trust and security.
Bloomberg’s reporting notes Apple’s Japan changes are part of broader worldwide adaptation to regulation, impacting payments, alternative marketplaces, and browser choices—again tied to iOS 26.2. [37]
And Reuters has emphasized that Japan’s framework is distinct from Europe’s, including the fact that Apple has authority to approve alternative marketplaces and that the law also reaches into interoperability expectations for iPhone hardware access—subject to privacy safeguards. [38]
What to watch next
Over the coming weeks, the biggest questions aren’t just legal—they’re behavioral:
- Will Japanese users trust alternative marketplaces enough to install them?
- Will developers shift meaningful revenue off Apple/Google billing rails once reporting and compliance burdens are accounted for?
- How aggressively will Japan’s regulator enforce the Act—and how much of the model spreads to other jurisdictions?
For now, the most immediate signal is clear: Japan has flipped the switch on a new smartphone era, and both Apple and Google are rewriting core platform rules in response. [39]
References
1. www.jftc.go.jp, 2. www.reuters.com, 3. www.jftc.go.jp, 4. www.nippon.com, 5. www.apple.com, 6. www.apple.com, 7. www.apple.com, 8. developer.apple.com, 9. www.apple.com, 10. www.apple.com, 11. www.apple.com, 12. www.apple.com, 13. www.apple.com, 14. www.apple.com, 15. www.reuters.com, 16. www.apple.com, 17. developer.apple.com, 18. www.apple.com, 19. www.apple.com, 20. blog.google, 21. blog.google, 22. blog.google, 23. blog.google, 24. www.android.com, 25. www.macrumors.com, 26. www.macrumors.com, 27. www.theverge.com, 28. www.apple.com, 29. www.apple.com, 30. www.apple.com, 31. www.apple.com, 32. www.apple.com, 33. www.apple.com, 34. blog.google, 35. developer.apple.com, 36. www.apple.com, 37. www.bloomberg.com, 38. www.reuters.com, 39. www.jftc.go.jp
