Apple was announced it will allow alternative app stores in Japan and allow developers to process payments for digital goods and services outside of its own in-app purchase system on iOS. The iPhone maker isn’t making these changes because it wants to be more open. is forced — in this case, to comply with the Mobile Software Competition Act (MSCA), which is now in effect.
With this updaterevenue from Apple’s App Store is affected in another major market due to anti-competitive laws and regulations. The company already has to comply with Europe’s Digital Markets Act (DMA), which previously required the tech giant to allow alternative app stores and other changes.
In the US, Apple has been strong-armed into changing its payment system through the courts, after being sued by Fortnite developer Epic Games. While not declared a monopoly, the court ruled that Apple had to give developers the right to process payments outside of its system if they chose. (The details surrounding that order are still being worked out on appeal partially reversed an earlier decision.)
As usual, in its announcement of the changes in Japan, Apple warned that alternative app purchases and payments open “new avenues for malware, fraud, scams, and privacy and security risks.” To mitigate these risks, the company said it has worked with Japanese regulators to require an authorization process for app purchases (“Token Validation”), which it says is designed to protect children specifically from inappropriate content and scams.
The fact that Apple has come up with a process to cover the risk of alternative app stores suggests that there has always been a technical solution at hand to balance the needs for both openness and security.
As in the EU, Apple has come up with a complicated fee structure to ensure it doesn’t lose much in the way of revenue from the App Store while appearing to comply with the letter of the law.
Epic Games CEO Tim Sweeney, of course, hasn’t been silent on the matter, saying that Fortnite won’t be returning to iOS in Japan because Apple charges a 21% fee for third-party in-app purchases.
In a post on X he wrote“Apple was supposed to open up iOS to competing stores today and instead of doing it honestly, it launched another travesty of obstruction and law-breaking in gross disrespect to the government and people of Japan. Apple chose poorly. Again.”
He also pointed out the difference between Apple and other game store providers such as Microsoft, asking: “Can you imagine the player and regulator uproar that would ensue if Microsoft required all games from Steam and the Epic Games Store to call the Trade Monitoring API and report all transactions back to Microsoft?”
“This is just announced by Apple in Japan,” he added.
Apple noted that developers will need to agree to the latest update to the Apple Developer Program License, which includes the new options for Japanuntil March 17, 2026.
