Apple Updates iOS in Japan to Meet Competition Law

Apple Inc. announced updates to its iOS software in Japan on December 17 to comply with the country's Mobile Software Competition Act, a law passed last year and effective this week, aimed at promoting competition in the smartphone market. The changes, rolled out as part of iOS 26.2 and available immediately in Japan, allow developers greater flexibility in app distribution and payments while introducing safeguards for user security and privacy.

The Mobile Software Competition Act requires Apple to open its platform to alternative app marketplaces and payment methods, marking the latest regulatory adjustment for the company beyond similar requirements in the European Union. Under the new rules, Japanese developers can distribute iOS apps through Apple-approved alternative marketplaces, where they face a reduced commission of 5 percent on sales of digital goods and services. Apps from these marketplaces must undergo Apple's notarization process, which includes automated and human reviews for malware, functionality, and security threats, though it is less thorough than the full App Store review. Alternative marketplaces handle their own fraud prevention, customer support, and...