Apple Opens iPhone Ecosystem to Third-Party App Stores in Japan Under New Competition Law

Apple Inc (NASDAQ:AAPL) said on Wednesday that it has begun allowing third-party app stores on iPhones and other devices in Japan, a move made to comply with newly introduced legislation designed to increase competition in the smartphone market.

In a statement, Apple said developers in Japan will be able to create and operate their own app marketplaces on Apple devices, with commissions to Apple starting from as low as 5%. Developers will also be permitted to use their own in-app payment systems for apps distributed through Apple’s App Store, although those transactions will continue to incur a 15% commission.

Japan becomes the latest market to require Apple to open its tightly controlled ecosystem, following a landmark ruling by the European Union earlier this year that compelled the company to permit what it describes as “alternative app distribution.”

According to information published on Apple’s website, the EU and Japan are currently the only jurisdictions where alternative app marketplaces are allowed within Apple’s ecosystem.

Apple said the policy changes are intended to ensure compliance with Japan’s Mobile Software Competition Act, which was passed earlier this year. Alphabet Inc (NASDAQ:GOOGL), a major rival to Apple’s App Store through its Google services, said on Tuesday evening that it will also introduce changes to meet the requirements of the new legislation.

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