Apple announced on December 17, 2025, comprehensive changes to iOS in Japan following passage of the Mobile Software Competition Act. The modifications introduce alternative app distribution channels and payment processing options while creating new security frameworks designed to address risks the company argues the legislation creates for Japanese users.

The MSCA requires Apple to permit alternative app marketplaces beyond the App Store and enable developers to process payments outside Apple In-App Purchase. According to the company’s announcement, these changes become available immediately through the iOS 26.2 release, with developers able to integrate new capabilities beginning December 17.

Alternative app marketplaces must receive authorization from Apple and meet ongoing requirements to serve developers and users in Japan. However, the company emphasized that apps distributed outside the App Store will not undergo the same comprehensive review process that applies to App Store applications. According to Apple’s statement, this creates new exposure to “scams, fraud, and abuse, or that expose users to illicit, objectionable, or harmful content not allowed on the App Store.”

Apple will conduct what it terms Notarization for all iOS apps distributed in Japan, regardless of marketplace. This baseline review process involves automated checks and human review focusing on basic functionality and protection from serious threats. The company stated Notarization ensures apps “function as promised and are free of known malware, viruses, or other security threats,” while acknowledging the process is “less comprehensive than the App Review process that applies to all apps on the App Store.”

The Japanese regulatory framework creates parallels with Europe’s Digital Markets Act implementation, though the Japanese approach differs in scope and timing. The European Union designated Apple as a gatekeeper under the DMA in September 2023, leading to significant changes to App Store rules throughout 2024 and 2025. Japan’s MSCA represents an independent regulatory approach to mobile platform competition.

Payment processing changes enable developers to include alternative payment methods within their App Store applications or link users to websites for transaction completion. These options will always appear alongside Apple In-App Purchase, according to the company’s documentation. When users choose Apple In-App Purchase, they retain access to refund support, subscription management, and Report a Problem functionality. Apple’s purchase history and subscription management will only reflect transactions completed through Apple In-App Purchase.

For transactions processed through alternative payment methods or website links, Apple stated it “will not be able to issue refunds and will have less ability to support customers encountering issues, scams, or fraud.” The company noted users may need to share payment information with additional parties, which “can introduce new privacy and security risks.”

Apple’s revised business terms establish commission structures reflecting multiple distribution and payment scenarios. iOS apps on the App Store will pay either 10 percent commission for Small Business Program members, Video Partner Program participants, Mini Apps Partner Program members, and subscriptions after their first year, or 21 percent commission on digital goods and services transactions. This represents a reduction from previous commission rates in Japan.

The App Store commission reflects “the value of the tools, technology, and services that enable developers to create apps, in addition to App Store distribution, discovery, and ongoing services,” according to Apple’s statement. Developers can process payments using Apple In-App Purchase for an additional 5 percent fee beyond the App Store commission.

iOS apps distributed through alternative marketplaces will pay a 5 percent Core Technology Commission on digital goods and services sales, including paid apps. Apple stated this commission “compensates Apple for the tools, technologies, and services that enable developers to build and share their apps with iOS users.” Developers using external website links from App Store apps will pay a Store Services Commission of 15 percent on digital goods and services transactions, reduced to 10 percent for qualifying developers and subscriptions after their first year.

According to Apple’s calculations, developers selling digital goods and services in Japan will pay “the same or less than they do today” under the new business terms. Developers not selling digital goods and services will continue paying no commissions or fees. This commission structure differs from Apple’s European Union approach, which implements the Core Technology Commission across all EU-distributed applications.

Child safety provisions represented a significant concern in Apple’s announcement. The company stated that apps downloaded from outside the App Store “may include illicit and objectionable content, and they will not undergo the same rigorous review process Apple employs to evaluate apps made for children on the App Store.” According to the statement, “similar regulatory changes in Europe have enabled types of apps that were previously unavailable on iOS, including pornography apps.”

Apps in the Kids category on the App Store will not include website transaction links “to reduce the risk of fraud or scams targeting children,” according to Apple’s documentation. For users under 18 years old, apps using alternative payment processing or website transaction links must include a parental gate requiring younger users to involve their parent or guardian before purchases. For users under 13 years old, apps cannot link to websites for transactions at all.

Apple stated it worked with Japanese regulators to preserve these guardrails. The company plans to provide developers using alternative payments with a new API enabling parents to monitor and approve purchases made outside Apple In-App Purchase. Developers must continue providing age ratings for all apps, whether distributed through the App Store or alternative marketplaces.

The regulatory compliance challenges in Japan mirror concerns Apple has expressed about European DMA implementation. In September 2025, Apple released comprehensive criticism of how the DMA created feature limitations and security compromises for EU users. Alternative app marketplaces now operate on iOS in Europe, including AltStore PAL, Epic Games Store, Setapp Mobile, and Aptoide, according to industry documentation.

Additional iOS 26.2 changes include browser choice screens and search engine selection experiences for Japanese users, default controls for navigation apps and app marketplaces, and options for users to review and adjust these choices in Settings at any time. Developers gain access to new tools including options to use alternative browser engines besides WebKit with “strict security and privacy requirements,” and a new API enabling voice-based conversational apps to launch via the iPhone side button.

Apple will provide a process for developers to request interoperability with core iPhone and iOS technologies. The company described these features as part of ongoing engagement with Japanese regulators on “strengthening protections for iOS users” despite the new risks the MSCA creates.

For marketing professionals, these changes introduce new distribution channels and payment options that could affect user acquisition costs and campaign structures in Japanese markets. Apple’s advertising business, rebranded as Apple Ads in April 2025, operates across multiple App Store placements including search results, the Today tab, and “You Might Also Like” sections. Alternative marketplaces will establish independent advertising and discovery mechanisms outside Apple’s ecosystem.

Japan generated $5.782 billion in revenue for Apple during the June 2025 quarter, according to the company’s fiscal results, up from $5.097 billion in the prior year. Services revenue, which includes advertising and App Store commissions, reached $27.423 billion globally during that quarter, representing 12 percent growth year-over-year. The MSCA’s impact on Japanese revenue streams remains uncertain as alternative distribution and payment options launch.

The timing of Japan’s regulatory action follows broader global scrutiny of mobile platform business practices. The European Union fined Apple €500 million for DMA violations in April 2025, with penalties focused on anti-steering restrictions that prevented app developers from informing customers about alternative purchasing options. The European Commission found Apple “breached its anti-steering obligation under the Digital Markets Act.”

Privacy considerations remain central to Apple’s messaging around regulatory compliance. The company stated it “will never abandon our bedrock commitment to our users’ privacy and security” despite the new requirements. This positioning echoes concerns Apple raised about Meta’s extensive data access requests under European regulations, where the company documented 15 separate requests from Meta for access to Apple’s technology stack.

Alternative payment processing introduces measurement challenges for advertisers accustomed to unified attribution through Apple’s systems. Safari 26 tracking changes introduced Advanced Fingerprinting Protection as default for all browsing sessions in September 2025, affecting how advertisers measure campaign effectiveness. The combination of alternative marketplaces, payment systems, and tracking restrictions creates a more complex environment for campaign management in Japan.

Developer adoption of alternative distribution remains uncertain. In Europe, six alternative marketplaces now operate on iOS, though user adoption has been limited according to industry reports. Apple’s Mini Apps Partner Program, launched globally with an 85 percent revenue share, represents another distribution option for developers seeking alternatives to standard App Store economics.

The Japanese digital advertising landscape demonstrates unique characteristics compared to other markets. Similarweb’s 2025 Digital 100 ranking showed domestic platforms maintaining stronger performance than international competitors in Japanese markets. According to research released in January 2025, platforms like jisin.jp achieved 61 percent year-over-year growth, while Note.com recorded combined growth of 29 percent across web and mobile usage.

Magnite research published in November 2025 revealed 89 percent of Japanese consumers regularly engage with ad-supported media including streaming television, mobile applications, digital audio, and news platforms. The study estimated 94 million Japanese consumers access open internet environments at least twice weekly. These engagement patterns suggest strong potential for alternative marketplace adoption if developers successfully navigate the new distribution options.

Apple emphasized that developers can access detailed resources through the Apple Developer Support page, with integration available immediately as part of iOS 26.2. The company will continue engaging with regulators on implementation details as the MSCA requirements take effect across Japanese markets.

Timeline

Summary

Who: Apple Inc. implementing changes to iOS platform for Japanese market in response to Mobile Software Competition Act requirements affecting developers, app marketplaces, and payment processors operating in Japan

What: Comprehensive iOS modifications enabling alternative app marketplace distribution, alternative payment processing methods alongside Apple In-App Purchase, new Notarization security process for all iOS apps, revised commission structures ranging from 5-21 percent depending on distribution and payment methods, enhanced child safety protections including parental gates and transaction restrictions

When: Announced December 17, 2025, with immediate availability through iOS 26.2 release for developers to integrate new capabilities, following passage of Mobile Software Competition Act requiring platform changes

Where: Changes apply exclusively to iOS apps and users in Japan, with alternative marketplaces requiring Apple authorization, Notarization process covering all iOS apps regardless of distribution channel, and new business terms affecting developers with Japanese storefronts

Why: Mobile Software Competition Act mandates alternative app distribution channels and payment processing options to increase competition in mobile platforms, while Apple implements security frameworks to address risks the company argues the legislation creates including exposure to malware, fraud, scams, and inappropriate content