San Francisco: Apple has announced that it is allowing alternative app stores on iPhones in Japan, marking a significant shift in its App Store policies as it complies with new regulations designed to boost competition in the country’s smartphone market.
Under the updated rules, Japanese developers will be permitted to launch their own app marketplaces on iPhones. Sales made through these alternative stores and their apps will attract commissions as low as 5 percent, substantially lower than Apple’s traditional fees.
Developers will also be able to offer their own in-app payment systems for apps distributed via Apple’s App Store, although Apple stated that these options will operate alongside its own payment system, and commissions will still apply.
Japan has become the latest jurisdiction to challenge Apple’s long-standing App Store business model, which historically charged developers commissions of up to 30 percent on in-app purchases of digital goods and services.
Legal battles in other countries
While Apple continues to face legal battles in the United States over its fees, European regulators have already forced the company to open iPhones to alternative marketplaces. Apple noted that Japan’s regulatory framework differs from the European model. In Japan, Apple retains the authority to approve alternative app marketplaces and requires apps sold through them to meet age-rating standards similar to those enforced on its own App Store.
The company also said that it will conduct a basic security review, known as notarization, on all apps distributed through alternative marketplaces. For developers continuing to use Apple’s App Store in Japan, Apple will allow links to external payment options, charging a 15 percent commission on those transactions. Standard purchases made directly through the App Store will be subject to a 26 percent fee.
Japan’s law also obliges Apple to open certain iPhone hardware features to third-party device makers. Apple has established a system to receive interoperability requests but said it reserves the right to reject them if they pose risks to user privacy or data security.
In a blog post, Apple noted that it had taken steps to minimise new privacy and security risks arising from the legislation, adding that the changes are intended to ensure Japanese users continue to receive a safe and secure experience.
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