Apple Opens iPhones to Alternative App Stores in Japan

Apple is allowing alternative app stores on iPhones in Japan to comply with new competition laws. This change allows Japanese developers to launch their app marketplaces with reduced commission rates. The law mandates age ratings and security checks, while also addressing iPhone hardware interoperability with third-party devices.

Apple announced on Wednesday that it would open its iPhones to alternative app stores in Japan as part of a compliance measure with new competition laws. This development is aimed at shaking up Japan's smartphone market dynamics, offering Japanese developers the autonomy to create their own app marketplaces.

Under the new rules, these developers can pay Apple as little as 5% commission on sales through their platforms, a marked decrease from the previous rate of up to 30% for in-app purchases of digital goods and services. While litigation continues in the U.S., Europe has already demanded similar marketplace access for the U.S. tech giant.

In Japan, Apple retains the right to approve these alternative marketplaces and enforce age ratings on sold apps. It will also conduct security checks on distributed apps. Additionally, Apple demands a 15% commission on external payments, while traditional App Store transactions incur a 26% fee. Apple's system accommodates hardware interoperability but prioritizes privacy and security, offering a rigorous review process to safeguard user data.

(With inputs from agencies.)