Overview
- Japan’s smartphone-specific competition law took full effect on December 18 and targets providers with at least 40 million monthly users, including Apple, Google, and Apple’s iTunes subsidiary.
- The rules require users to select their browser and search engine at initial setup and during OS updates, with carriers such as KDDI and NTT Docomo already notifying customers about the new choice screens.
- The law permits third-party app stores and external payment systems, seeking to loosen Apple and Google’s dominance and potentially reduce the impact of commissions that reached up to 30%.
- Apple says iOS 26.2 in Japan enables alternative app marketplaces and non‑Apple payment processing for digital goods, alongside updated developer terms that add new fees for off‑App Store transactions.
- Epic Games CEO Tim Sweeney condemned Apple’s approach, said Fortnite will not return to iOS in Japan in 2025 as previously planned, and stated he intends to file a complaint with the Fair Trade Commission.