Japan App Store Gets Alternative Marketplaces, Third-Party Payments and More

[MacRumors]

Apple today introduced several changes to the App Store in Japan to meet the requirements of the Mobile Software Competition Act (MSCA) that goes into effect on December 18. The MSCA is similar to Europe's Digital Markets Act (DMA) so the Japanese App Store will work a lot like the EU App Store, but there are some differences.

Here's a quick rundown of what's changing as of today:

• Side Button - Users in Japan will be able to change what the side button does, and it will be able to activate third-party voice assistants instead of Siri.
• Payment options - Developers can offer in-app purchases, accept third-party payments in their apps, or direct users to a website to make a purchase.
• Alternative app marketplaces - Apps can be distributed through alternative app marketplaces instead of the App Store. Users can set an alternative app marketplace as their default marketplace instead of the App Store.
• Fee changes - New fees range from 5% to 26% depending on distribution method and payment method.
• Browser choice - Users are prompted to select a default browser at setup.
• Search engine choice - Users are prompted to choose a default Search engine at setup.
• Navigation apps - Users in Japan can select a different navigation app.

Alternative Payment Options

There is a notable difference between how alternative payment options are implemented in Japan and how they are implemented in the EU. Developers in Japan are required to display third-party digital purchase options alongside in-app purchase options, so customers can choose to use in-app purchase if desired.

Purchase screens can link to a website or use a third-party payment service for end-to-end checkout directly in an app, but those two alternative payment options must be displayed right alongside an in-app purchase option. Developers are required to make the in-app purchase button at least as prominent as other payment options that are displayed.

Japanese developers are able to offer different price points, so a direct payment link can be cheaper than the accompanying in-app purchase option. When a user chooses an alternative payment option or taps a link to a website to make a purchase, an in-app sheet will let them know they are no longer transacting with Apple. It informs users that refund requests and other Apple-provided services will not be available.

Alternative App Marketplaces

App developers in Japan can offer their apps through the App Store or through any alternative app marketplace. Apps and app marketplaces are subject to Apple's Notarization process, and there is no option to distribute apps through a website like there is in the EU.

Any developer is able to build an app marketplace. As in the EU, alternative app marketplaces will be checked for basic functionality, malware, and security threats for user protection purposes, but Apple does not have content oversight.

App marketplaces can establish their own content rules if desired, and must handle fraud prevention, customer support, and refunds. Apple says that app marketplaces will need to be authorized and will have to meet ongoing requirements to serve developers and users.

App developers in Japan can select an App Store or alternative app marketplace when using App Store Connect, and can distribute apps through one marketplace or many.

Users are able to set a default app marketplace that replaces the App Store as the primary app option.

Fees in Japan

Apple has established a new fee structure in Japan, and fees are based on distribution and payment method. Apple says that fees will be the same or lower for 100% of developers in Japan.

Participants in the Small Business Program, Video Partner Program, and Mini Apps Partner Program will pay the reduced rate below. Subscriptions in apps maintained after the first year are also subjected to the lower fee. The Small Business Program includes developers that earn less than 1 million USD annually. Developers that earn more than that have to pay Apple's full commission rates.

• App Store w/ In-App Purchase - Varies from 15% to 26%. 21% base fee, 5% payment processing fee. Base fee is 10% for program participants, and 5% fee remains the same.
• App Store w/ Alt Purchase - Varies from 10% to 21%. 21% base fee, no payment processing fee. 10% for program participants.
• App Store w/ Web Link - Varies from 10% to 15%. 15% Store Services Fee, 10% for program participants.
• Alternative Marketplace - 5% Core Technology Commission.

To explain it another way, all apps on the App Store will pay a 10% or 21% App Store commission. For purchases made using in-app purchase through the App Store, Apple will collect an additional 5%. Purchases made in an app through an alternate payment method will not incur the 5% fee, but developers will need to pay the fee from whatever payment processing service they're using.

Web link fees are lower. Apple will collect 15% from standard users, or 10% from program participants. There is no payment processing fee, but developers will need to pay the fee of the third-party payment processing service.

Non-App Store distribution has the lowest fee, at 5%. The Core Technology Commission applies to the sale of digital goods and services, including paid apps in alternative app marketplaces.

Side Button Changes

Users in Japan can change the function of the Side Button, assigning a voice-based conversational app. There are criteria that apps need to meet to be eligible to operate with the Side Button, and Apple has created an API to allow developers of voice-based conversational apps to request Side Button access.

Apps that offer a conversational experience as their primary purpose are eligible to be used with the Side Button. That includes chatbot apps like ChatGPT, Claude, or Gemini.

The Side Button will be able to activate the voice chat mode in an eligible third-party app, and it will function much like the Action Button does now when launching an app using a Shortcut.

Child Protections

All apps need to provide an install sheet with a clear age rating, regardless of whether an app is distributed through the App Store or an app marketplace.

Apps in the Kids category will not be able to include links to websites to complete transactions at all. Apps outside of the kids category cannot link to websites for transactions for users under 13 years old. Developers are able to include a link to a website for transactions in their app, with that link only displayed to users that are over the age of 13 t... Click here to read rest of article

Article Link: Japan App Store Gets Alternative Marketplaces, Third-Party Payments and More

 

[breenmask]

ew. no thanks. apple should just pull out of Japan. this stuff just makes the phone more complicated to use.

 

[SteveJobsOfficial]

ew. no thanks. apple should just pull out of Japan. this stuff just makes the phone more complicated to use.

Android has had this functionality globally since its inception and no app has willingly left the Play Store to force people through other methods unless they were kicked out of the store for violating store guidelines. How does it make it more complicated for you to use? What has changed that impacts you personally?

 

[Macalway]

This sort of bugs me. I just see smiling Japanese, and the look of pity for idiot Americans.

I think I need help.

 

[Lyrics23]

It’s a good start. The Core Technology Fee Commission is still an insane concept though.

 

[UliBaer]

Cool, the more countries, the better! 👍

 

[B-Mc-C]

Between this and the EU’s DMA and whatever else other nations are cooking up to get their share, this is such a clusterf***. Apple will go nuts complying with all of the extortion regulation being different in each region, but they will be able to. If there is only one good thing that our government can do, it is protecting our companies from getting fleeced/blackmailed by the rest of the world. Success and innovation should not be punished. Ready for all of the people on here to chant “yeah, we hope Apple gets crushed!” while at the same time whining that these regulatory costs are passed onto the prices they pay. 🤣

 

[SteveJobsOfficial]

Between this and the EU’s DMA and whatever else other nations are cooking up to get their share, this is such a clusterf***. Apple will go nuts complying with all of the extortion regulation being different in each region, but they will be able to. If there is only one good thing that our government can do, it is protecting our companies from getting fleeced/blackmailed by the rest of the world. Success and innovation should not be punished.

Life must be so entertaining and whimsical being this clueless of how things work.

 

[whatnot]

Ready for all of the people on here to chant “yeah, we hope Apple gets crushed!” while at the same time whining that these regulatory costs are passed onto the prices they pay. 🤣

what costs are those?

 

[turbineseaplane]

• Side Button - Users in Japan will be able to change what the side button does, and it will be able to activate third-party voice assistants instead of Siri.
• Payment options - Developers can offer in-app purchases, accept third-party payments in their apps, or direct users to a website to make a purchase.
• Alternative app marketplaces - Apps can be distributed through alternative app marketplaces instead of the App Store. Users can set an alternative app marketplace as their default marketplace instead of the App Store.
• Fee changes - New fees range from 5% to 26% depending on distribution method and payment method.
• Browser choice - Users are prompted to select a default browser at setup.
• Search engine choice - Users are prompted to choose a default Search engine at setup.
• Navigation apps - Users in Japan can select a different navigation app.

These would be nice things to have everywhere in the world.

 

[csilverman]

Between this and the EU’s DMA and whatever else other nations are cooking up to get their share, this is such a clusterf***. Apple will go nuts complying with all of the extortion regulation being different in each region, but they will be able to. If there is only one good thing that our government can do, it is protecting our companies from getting fleeced/blackmailed by the rest of the world. Success and innovation should not be punished. Ready for all of the people on here to chant “yeah, we hope Apple gets crushed!” while at the same time whining that these regulatory costs are passed onto the prices they pay. 🤣

[chuckles indulgently] success and innovation aren't being punished

 

[vertsix]

Fantastic. Anyone else who believes otherwise is against consumer-friendly choices.

 

[Abazigal]

It looks like the experience Apple has from fighting the EU has translated well into how it plans to handle similar requests from other countries. I guess this is what we mean by high fixed costs (it took a lot of back and forth to settle on something which works) but low marginal costs (you now have a working template that you can easily modify for other regions).

So from first impressions:

3rd party app stores - my guess is that it will still be as cumbersome to use as in the EU, plus Apple still retains full notarisation rights, so I foresee that the vast majority of iOS users will stay within the iOS app store and transact from there.

Alternative payments - the important thing here is that developers still have to pay Apple a commission even if third party payments are used (which means they may not really save that much at the end of the day, especially if they are already part of the small developer programme).

Side button changes / Child protection - I won't be surprised if we start seeing this announced during WWDC 2026.

Overall, I don't see Apple giving up too much in terms of control or profits.

 

[csilverman]

Fantastic. Anyone else who believes otherwise is against consumer-friendly choices.

Agreed. Choice = innovation. Greed-fueled lock-in = stagnation.

Competition is good. You can't pretend to believe in free-market capitalism and then argue that the government should be using its influence and coercion to protect a $1 trillion corporation's racket.

*That* is anti-innovation.

 

[sw1tcher]

ew. no thanks. apple should just pull out of Japan. this stuff just makes the phone more complicated to use.

If it will make the phone more complicated for you to use, I'd recommend the easiest phone ever

 

[nuff_said]

Between this and the EU’s DMA and whatever else other nations are cooking up to get their share, this is such a clusterf***. Apple will go nuts complying with all of the extortion regulation being different in each region, but they will be able to. If there is only one good thing that our government can do, it is protecting our companies from getting fleeced/blackmailed by the rest of the world. Success and innovation should not be punished. Ready for all of the people on here to chant “yeah, we hope Apple gets crushed!” while at the same time whining that these regulatory costs are passed onto the prices they pay. 🤣

Extortion?! You realize other companies in other industries do the same thing to comply with requirements in each country right?

 

[CrysisDeu]

Android has had this functionality globally since its inception and no app has willingly left the Play Store to force people through other methods unless they were kicked out of the store for violating store guidelines. How does it make it more complicated for you to use? What has changed that impacts you personally?

You’ve never used a Chinese phone lol

 

[turbineseaplane]

You’ve never used a Chinese phone lol

China is its own ball of wax on stuff like this.

 

[platinumaqua]

At what point does it become easier to just open up the OS instead of implementing workarounds for each country?

 

[Unregistered 4U]

Cool, the more countries, the better! 👍

I would wager most small developers don’t relish having to deal with a different set of rules to deliver solutions to three separate large markets. But, it’s not like any of this was being done to the benefit of small developers OR consumers. It was primarily to placate the large interests that want access to the affluent customer base Apple has built.

 

[turbineseaplane]

At what point does it become easier to just open up the OS instead of implementing workarounds for each country?

Getting closer, thankfully...

 

[surferfb]

While I’m not in favor of this law at all, it is a much better solution than the DMA, and the EU could really learn a thing of two from it. Specifically:

Alternative Payment Options

Developers in Japan are required to display third-party digital purchase options alongside in-app purchase options, so customers can choose to use in-app purchase if desired.

This is pro consumer - I can still use IAP if I want.

Child Protections
Apps in the Kids category will not be able to include links to websites to complete transactions at all. Apps outside of the kids category cannot link to websites for transactions for users under 13 years old. Developers are able to include a link to a website for transactions in their app, with that link only displayed to users that are over the age of 13 to meet the MSCA's requirements.

For all users under the age of 18, all App Store apps that use alternative payment processing or link to a website for transactions must include a parental gate that requires younger users to involve their parent before making a purchase.

Another common sense restriction the EU would be wise to implement.

Interoperability
Apple has more control over interoperability in Japan than it does in the EU, and it is able to consider security and privacy risks when deciding whether to implement an interoperability feature.

I don’t understand why “Apple isn’t allowed to consider security and privacy risks when deciding to whether to implement an interoperability feature” isn’t immediately disqualifying for the DMA.

In my opinion, both laws are overreaches and aren’t needed, but you can tell Japanese regulators considered the potential negative impacts on users while implementing their regulations and worked to counteract them. The EU absolutely did not.

I hope other countries looking at doing these sorts of regulations follow Japan’s lead. It’s a much, much, much better solution.

 

[turbineseaplane]

Maybe the real innovators are going to end up being the various governing bodies around the world that come up with the best rules for Apple to work under.

😂

 

[surferfb]

I’ll add that it’d be real nice if Japan applied a version of this law to Sony and Nintendo. I won’t hold my breath.

 

[turbineseaplane]

I’ll add that it’d be real nice if Japan applied a version of this law to Sony and Nintendo.

Yes, particularly #2, #3 & #4