Apple, Google Announce Major Changes In Japan As New App Competition Law Takes Effect

In response to Japan’s Mobile Software Competition Act (MSCA), Apple Inc. (NASDAQ:AAPL) and Google-parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) have announced significant changes.

Japan's MSCA Opens App Store Competition

The MSCA, which took effect on Thursday, introduces new options that allow developers to distribute apps through alternative app stores and handle payments for digital goods and services outside Apple's in-app purchase system.

These changes, while providing new opportunities for developers, also pose potential risks such as malware, fraud, and privacy and security threats. Apple has collaborated with Japanese regulators to introduce measures to safeguard users, particularly younger ones.

Developers will be able to offer iOS apps in Japan through alternative app marketplaces outside the App Store, provided those marketplaces are approved by Apple and comply with its ongoing standards for developers and users.

Apps installed outside the App Store will not receive the same App Review protections offered by Apple, which could leave users more vulnerable to security risks. To help address this, Apple will require all iOS apps to undergo a basic screening process known as Notarization.

Meanwhile, Google will introduce choice screens in Japan, prompting users to select their preferred search engine and browser on Android and Chrome, while continuing to allow non-gaming app developers to offer alternative in-app billing options through its User Choice Billing program.

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Apple’s compliance with the MSCA is in line with its recent regulatory engagements. In November, the company confirmed that its Apple Ads and Apple Maps services met the Digital Markets Act thresholds set by the European Commission, potentially triggering strict pro-competition obligations.

At the same time, Apple has also challenged India’s new antitrust penalty law, which could expose the company to fines of up to $38 billion, calling the potential penalty “grossly disproportionate” and “unjust.”

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.