Apple opens up its App Store to competition in Japan

Core Insights - Apple is allowing alternative app stores and external payment processing for digital goods in Japan due to the enforcement of the Mobile Software Competition Act (MSCA) [1] - The changes in Japan are part of a broader trend where Apple is being compelled to adapt its App Store practices in response to antitrust regulations in various regions, including the EU's Digital Markets Act (DMA) [2] - Apple has implemented a complex fee structure to maintain App Store revenue while complying with legal requirements [4] Regulatory Changes - The MSCA in Japan mandates that Apple must allow alternative app stores and payment processing options [1] - In the U.S., a court ruling related to a lawsuit from Epic Games has also pressured Apple to modify its in-app payment system [3] Fee Structure - The new App Store commission rates include: - 10% for transactions from specific programs and auto-renewable subscriptions after the first year [5] - 21% for sales of digital goods or services using alternative payments [5] - 5% for payments processed by Apple In-App Purchase [6] Developer Reactions - Epic Games' CEO Tim Sweeney criticized Apple's fee structure, stating that Fortnite will not return to iOS in Japan due to the 21% fee on third-party in-app purchases [7] - Sweeney expressed concerns about Apple's approach, comparing it unfavorably to other game store providers like Microsoft [8] Developer Agreement - Developers must agree to the updated Apple Developer Program License Agreement, which includes the new options for Japan, by March 17, 2026 [9]