Japan: App Marketplaces, External Payments, New Fee Structure
Apple today announced changes impacting iOS apps in Japan to comply with the Mobile Software Competition Act (MSCA). These updates create new options for developers to distribute apps on alternative app marketplaces and to process app payments for digital goods and services outside of Apple In-App Purchase.
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The MSCA’s requirements for alternative app marketplaces and app payments open new avenues for malware, fraud and scams, and privacy and security risks.
They just couldn’t help themselves.
For their iOS apps distributed on the App Store in Japan, developers will be able to include an alternative payment processing method in their app and/or link users to a website to complete a transaction.
These alternative payment options will always be presented alongside Apple In-App Purchase, so that users in Japan are clear on when they are transacting through Apple.
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.
iPhone and iPad users in Japan can download the alternative app marketplace from the AltStore website, and then use the AltStore to download apps without having to go through Apple’s App Store. Prospective AltStore users need to be physically located in Japan, and have a Japanese App Store account. Devices also need to be running iOS/iPadOS 26.2 or later.
Previously:
- iOS 26.2: Third-Party Voice Assistants in Japan
- iOS 26.2: App Marketplaces and Browser Choice in Japan
- Japanese Mobile Software Competition Act
- EU App Store Tiers and Core Technology Commission
- Japan Passes Law to Allow App Marketplaces
- Proposed Japanese Law for Alternate App Stores
- Japanese Game Developers Complain About App Store
Update (2025-12-19): Malte Kirchner (via ednl):
On paper, many things look the same between Japan and the EU. But tone matters. The law passed in Japan in June 2024 relies more on dialogue than confrontation, is heard from Apple Park. The Japanese are concerned with data protection, security, and child protection for users. In Europe, they argue in Cupertino, the interests of a few large competitors are primarily being satisfied. This leads to a worse user experience and compromises in security, Apple is convinced.
What makes Apple conciliatory in Japan is likely the numerous exceptions and the bargaining chips that the company has there. Concerns about cybersecurity or child protection can override certain rules. For example, there are alternative app stores in Japan, but no complete sideloading. The requirements for interoperability also turn the European principle on its head: in Japan, this is available on request, while in Europe they want it "by design" – i.e., when new functions are launched. The European model is based on the fear that requests could be indefinitely postponed. Therefore, they want interoperability immediately. The Americans, on the other hand, see this as an obstacle to innovation and an expropriation of intellectual property, but also as a major security risk.
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At least on the day of introduction, the Japanese conditions seem enviable from a European perspective. No threat of legal action, constructive discussions, and the regulator gets its functions, while new features are to be brought to Japan without delay – European customers undoubtedly wish for this too. However, it remains to be seen whether the situation in Japan will truly remain so harmonious and whether the law will prove to be a tame paper tiger if the regulated parties are too satisfied with it.
Update (2025-12-22): John Gruber (Mastodon):
Developers are allowed to offer lower prices in alternative payment methods. That strikes me as a decent, but not ideal balance. I think it’s fair for Apple to mandate that its own IAP be offered alongside any form of alternative payment within an app. But, as I’ve long advocated, links to the web — leaving the app for the system’s default browser — should be permitted without having to offer IAP too. But overall, where Japan landed is reasonable.
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An Apple spokesperson confirmed that, in contrast with the DMA, the guidelines that accompany the MSCA provide more clarity on things like privacy, security, safety, and youth protection. (E.g. apps distributed outside the App Store in Japan still require age ratings. There’s no such requirement in the EU.)
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It’s hard to find anything aside from small nits to complain about in the MSCA. It arguably gives Japanese users a better, more robust iOS experience than what Apple offers to the rest of the world.
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This is automatically going to lead to more fraud simply because users are being told to accept it as normal to be bounced out of one payment entity into another.
Just like legitimate companies that send links in emails you're supposed to clink on to go to a payment page are unintentionally supporting fraudsters by normalising an attack vector.
It might be liberating to see people linked out to alternative payment methods but there's a very high chance it will get highjacked down the line. IMO.
There will absolutely CONTINUE to be fraud with regards to apps and iOS.
But surely even Apple users have been able to pay for stuff on the web using their iPhones for many years now? Or are all payments by any other means other than the app store blocked on iOS?
I don't think MSCA was designed primarily to combat fraud though.
@Niall
> This is automatically going to lead to more fraud
How much more? There are already plenty of frauds on the App Store where you can pay for products that do not work as advertised or at all. How does Apple being the payment entity, curator and reviewer help in such cases?
@Kristoffer
Yeah there is fraud already - its the whole 'get people used to being bounced from one place to another' that I think will create problems in what people accept as the norm.
@someone
I agree the amount of fraud on the App Store is ridiculous and Apple should spend way more time and money tackling it.
Its the 'new' expected behaviour of linking out somewhere else which I fear will create a large number of ideal targets for fraudsters.
This article overlooks one crucial point: the Japanese market for Apple is four times smaller than the EU market... the stakes are not at all the same...
The funny thing to me is that, by saying that Apps bouncing the user to payment methods outside the store could be fraudulent, proves that the company does absolutely nothing to guarantee the safety of the apps on their own store. Why else would you allow a fraudulent app on your store, whenever it uses Apple's payment system or someone's else?
The easiest frauds will be credit cards “leaking” out. Great way to harvest CC numbers.
The next … inconvenience… will be subscriptions that can’t be cancelled, and refunds that aren’t refunded.
Apple being a trusted intermediary has some actual benefits vs buying direct. The subscriptions are highly appreciated from what I’ve read.
@Someone else I think Apple has an advantage with cancelling subscriptions but not with refunds—it’s common to not be able to get a refund from the App Store, and then there’s nothing you can do. If you try a credit card chargeback your whole Apple account could get killed.
"by saying that Apps bouncing the user to payment methods outside the store could be fraudulent, proves that the company does absolutely nothing to guarantee the safety of the apps on their own store"
I think it's even a bit dumber than that. Fraudulent apps already don't follow app store rules, so nothing is stopping them from linking users to external payment systems right now.
The only apps waiting for Apple to change its rules are the ones that aren't fraudulent.
