Apple Opens iPhone to Alternative App Stores in Japan Under New Competition Rules

Apple Inc. (NASDAQ: AAPL) said Wednesday it has opened the iPhone to alternative app stores in Japan, marking a significant shift in its App Store business model as it complies with new legislation aimed at boosting competition in the country’s smartphone market.

Under the new framework, developers in Japan can launch their own app marketplaces on iPhones and pay Apple as little as 5% on sales made through those alternative stores. Developers will also be allowed to offer their own in-app payment systems for apps distributed through Apple’s App Store, though Apple said those options must be offered alongside its own payment system and will still be subject to commissions.

The changes apply only to iPhones, Apple said, and do not extend to other Apple devices.Apple said developers distributing apps through its App Store in Japan will be charged a 26% commission on standard in-app purchases. Developers who include links that direct users to external websites for digital purchases will pay a 15% commission.

For apps distributed through alternative app marketplaces, Apple will collect a 5% commission on in-app purchases. Apple said it will also display warnings to users when they access third-party app stores or alternative payment options. Unlike Europe’s regulatory framework, Japan’s rules allow Apple to retain approval authority over alternative app marketplaces. Apps distributed through those marketplaces will still be required to meet age-rating standards similar to those used in Apple’s App Store.

Apple said it will also conduct a basic security review, known as notarization, on all apps distributed through alternative marketplaces to help mitigate security risks.In addition, Japan’s law requires Apple to open certain iPhone hardware features to third-party device makers. Apple said it has established a system for handling interoperability requests but may reject requests that could expose sensitive user data.

“Across these changes, Apple has worked to reduce new privacy and security risks the law creates to provide users in Japan the best and safest experience possible,” the company said in a blog post.

Japan becomes the latest jurisdiction to challenge Apple’s long-standing App Store model, where developers historically paid commissions of up to 30% on digital purchases. Apple has already been required to open iPhones to alternative app marketplaces in the European Union, while it continues to litigate over App Store rules in the United States.The Japanese changes come as regulators globally push major technology platforms to loosen control over app distribution and payments, citing concerns over competition and developer choice.

About Apple Inc.

Apple Inc. (NASDAQ: AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories, along with a broad portfolio of software and services. The company’s products include the iPhone, iPad, Mac, Apple Watch, and Apple TV, as well as operating systems and digital services such as the App Store, Apple Music, and iCloud. Apple operates globally and is headquartered in Cupertino, California.

Stocks.News holds positions in Apple as mentioned in the article.