Apple and Google Take a Hard Hit in Japan

Japan Enforces Mobile Software Competition Act, Aiming to Curb Market Power of Apple and Google

Japanese authorities are enforcing the Mobile Software Competition Act (MSCA), compelling Apple and Google to meet new standards for their digital app stores, the App Store for iOS and Google Play for Android. Passed in 2024, Japan’s Mobile Software Competition Act is the first regulation in Asia to address mobile market power, leading to the designation of Apple Inc., iTunes K.K., and Google LLC as specified software providers in March 2025. In April 2025, the Japanese Fair Trade Commission (JFTC) issued a cease-and-desist order against Google for restricting competition in smartphone search through exclusive agreements. Subsequently, in July 2025, the JFTC released guidelines clarifying the scope and requirements of the MSCA. These actions align with the European Commission’s enforcement of the Digital Markets Act (DMA) in March 2024, reflecting a shared focus on regulating market power. In April 2024, the European Commission had already ruled that Meta was noncompliant with the DMA. Enforcement of the MSCA began on December 17, 2025, alongside Google’s compliance measures, including choice screens and expanded alternative billing. Concurrently, Apple released iOS 26.2 in Japan, offering alternative marketplaces and payment options.

New Regulations in Japan Expand Choices for App Developers and Users on Apple and Google Platforms

According to PocketGamer, Apple and Google, as the first providers targeted by Japanese authorities, must now allow partner stores, alternative payment methods, promotions outside their stores, and links to other payment methods. Google’s compliance includes choice screens on Android devices and the Chrome app on iPhones in Japan, enabling users to select their preferred search engines and browsers. The MSCA mandates this prominent display. Google has also broadened its User Choice Billing program to encompass all apps offering in-app purchases of digital content to Japanese users, expanding beyond the non-gaming apps included since 2022. Furthermore, Google launched a new program, allowing developers to offer users a choice between Google Play Billing and completing purchases on their own websites, increasing developer choice and flexibility on Google Play. Developers can begin registering immediately; APIs for full implementation will be available soon. With the release of iOS 26.2 on December 17, Apple introduced alternative app distribution channels and payment processing options. Alternative app marketplaces can now operate on iPhones in Japan; however, Apple maintains guidelines for apps in the Kids category and those used by individuals under 18 years of age.

Like all listed companies, Google and Apple must provide fair API access and device capabilities for increased transparency and must not give their own apps unfair advantages. On December 17, 2025, Google implemented new rules: users in Japan now have more choices for search engines and browsers, and developers have expanded options for in-app payments for digital content. These changes follow the JFTC’s designation of Google and Apple in March 2025 as services subject to the MSCA. As a result, game creators may be able to sell games and apps outside the App Store or Google Play Store, set prices independently of device owners’ commissions, and conduct business directly with customers. These regulatory shifts in Japan and Europe indicate a significant evolution in the mobile app ecosystem.

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