Japan Orders Apple and Google to Open Payment Systems and App Stores
New Mobile Software Competition Act guidelines will reshape the digital marketplace and promote a more level playing field.
Published: August 8, 2025A Landmark Decision for Competition
In a landmark decision that will send ripples through the global mobile industry, Japan's Fair Trade Commission (JFTC) has finalized new guidelines under its 'Mobile Software Competition Act.' These regulations, which are set to take effect on December 18th, 2025, will fundamentally change how major app store operators like Apple and Google conduct business in Japan. The new rules will require these tech giants to permit developers to use external payment systems, bypassing the companies' proprietary payment methods and the associated fees, which can be as high as 30%. This move is aimed at fostering a more competitive and open mobile ecosystem, giving developers more choice and flexibility in how they monetize their apps and games.
The 119-page Mobile Software Competition Act (MSCA) outlines a comprehensive framework for compliance. The guidelines prohibit Apple and Google from engaging in self-preferencing, which means they can no longer favor their own apps and services over third-party rivals by using sensitive user data collected from their operating systems. Furthermore, the new rules ban the unfair delay, rejection, or limitation of a competitor's app visibility in their respective app stores. This is a crucial provision designed to prevent market gatekeeping and ensure that all developers have a fair chance to reach consumers. To enforce these new regulations, Apple and Google will be required to establish firewalls to prevent their internal teams from accessing and using sensitive developer data for competing products. They must also submit annual compliance reports to the JFTC, ensuring they are adhering to the new laws.
A Global Trend Toward Regulation
This development in Japan is part of a growing global trend to regulate the power of large technology companies. Similar legislation, such as the Digital Markets Act (DMA) in the European Union, has also been enacted to curb the dominance of major platforms. Japan's JFTC has been investigating the mobile market power of Apple and Google since 2020, and these new guidelines are the culmination of that long-term effort. The JFTC received 105 public comments on the draft regulations, which were considered in shaping the final enforcement guidelines. The regulator's proactive stance and commitment to promoting public awareness of the new act signals a strong desire to ensure a vibrant and fair digital marketplace for both developers and consumers.
“The new rules ban self-preferencing and unfair treatment of rival apps in app stores. Apple and Google must build firewalls to stop teams from using sensitive developer data.”
The impact of this legislation on the mobile gaming industry in Japan, a country known for its high-spending players and influential gacha genre, is expected to be significant. The ability for developers to offer alternative payment systems could lead to lower transaction fees and potentially allow for more competitive pricing or greater revenue retention. This could be a huge win for both large publishers and smaller independent developers. While the legislation is currently focused on Japan, its success will be closely watched by regulators in other countries who are considering similar measures. The move underscores the increasing pressure on tech giants to adapt their business models in the face of global regulatory scrutiny. It is a clear signal that the era of unchallenged app store dominance may be drawing to a close, and a new era of open competition is on the horizon. The coming months will be critical as both Apple and Google prepare to comply with these new, far-reaching regulations. The tech world will be watching closely to see how these changes impact the mobile landscape in one of its most important markets.
The legislative action in Japan is a direct response to long-standing concerns from developers about the 'app tax'—the commission fees charged by Apple and Google on in-app purchases and app sales. This issue has been at the center of high-profile legal battles, most notably between Epic Games and Apple. While the outcome of that particular case was mixed, it has spurred regulators worldwide to re-evaluate the antitrust implications of app store policies. Japan's new law is one of the most comprehensive responses to date, directly addressing not just payment systems but also issues of data privacy and self-preferencing. This makes it a powerful precedent for other countries considering similar legislation. The financial implications for both Apple and Google could be substantial, as Japan is a major market for mobile apps and games. The new regulations could lead to a significant shift in revenue dynamics, potentially benefiting developers who can now offer more attractive pricing and promotional deals to their users. Furthermore, the requirement for firewalls and annual compliance reports indicates a move towards more active regulatory oversight, which could fundamentally change the relationship between platform holders and developers. The future of app stores in Japan, and potentially elsewhere, is likely to be defined by a new balance of power, where regulators play a more active role in ensuring a competitive and fair market.
