The Battle Between Apple and App Developers Reaches Japan

After regulators in the European Union forced Apple to scale back its App Store payment rules, could Japan be next?

Apple recently announced changes to its app distribution rules and payment options in Japan, ostensibly to comply with the country’s Mobile Software Competition Act (MSCA), according to 9to5Mac. But now a consortium of seven IT-related groups, representing more than 600 companies, has issued a statement arguing that Apple’s commissions remain so onerous that using external payment sites is not economically viable.

Apple Takes Its Cut

The new Japanese regulations allow developers to use alternatives to standard in-app systems. The goal was to allow companies to avoid paying commissions to Apple and Google, which take a percentage of app sales as well as in-app purchases. Prior to the MSCA, those commissions could reach as high as 30%.

Allowing outside payment methods was intended to let app developers sidestep those fees. However, Apple has continued to charge commissions of 15% to 20% even when purchases are made outside its own payment system. Developers argue that there is therefore “no economic incentive” to adopt the newly permitted payment methods, according to The Japan Times.

They also contend that in the U.S., similar external payment options are offered without additional commissions, placing Japanese consumers and businesses at a disadvantage. Since May 2025, Apple has been barred from imposing commissions or fees on purchases made outside its App Store in the U.S., following an injunction issued by a judge who found that Apple had imposed unlawful restrictions on developers. That ruling is currently under appeal.

The EU Took on Apple

Apple faced similar scrutiny in Europe. Previously, customers could only make purchases through its App Store, with Apple taking up to a 30% cut. After the EU required Apple to allow alternative app marketplaces, the company introduced a Core Technology Fee, which applied even to apps distributed outside the App Store, and imposed commissions of up to 17% on certain off-platform transactions.

Epic Games, the creator of the popular online game Fortnite, attempted to bypass Apple’s byzantine payment directives by offering discounted direct payment options within the game. After Fortnite was removed from both Apple’s App Store and Google Play, Epic’s legal and regulatory challenge contributed to EU action requiring Apple and Google to permit developers to alternative storefronts and payment options.

Japanese developers are now looking for a similar intervention from the Japan Fair Trade Commission, which is responsible for enforcing the new law.

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Tags: APP StoreAppleDevelopersEUGoogleJapan