Japan finalizes smartphone app store rules that target Apple and Google on payments and browser engines

Japan’s competition regulator has finalized how it will enforce a new law governing smartphone operating systems, app stores, browsers, and search, a move that will require Apple and Google to open payments and lift long‑standing technical restrictions in Japan. The Japan Fair Trade Commission said the rules apply to companies designated as operators of specified smartphone software with substantial influence in the domestic market.

The timing matters because Japan is joining the European Union in forcing structural changes to mobile platforms, but with provisions tailored to local developers and carriers. Japan is among the top three markets for consumer app spending globally, according to Data.ai, so changes to fees and distribution terms have immediate revenue implications for gaming and subscription businesses.

Under the enforcement guidelines, designated operators must allow developers to use third‑party billing for in‑app purchases, must permit steering to external payment options without punitive design, and must enable third‑party app stores. The rules also address browsers, stating that operators cannot require the use of a specific browser engine, a point that targets Apple’s WebKit‑only policy for iOS in Japan.

Search defaults and self‑preferencing are covered. Designated firms must present fair choice screens for default search and browser selection, and cannot rank their own services in ways that unduly disadvantage rivals. Data access restrictions that prevent competing apps from using necessary device functions are prohibited unless objectively justified for security or privacy.

The law provides for improvement orders, followed by administrative surcharges tied to relevant domestic sales if violations continue. Policymakers previously indicated surcharges could reach a double‑digit percentage for repeat noncompliance. The Cabinet Secretariat’s Digital Market Competition Headquarters coordinated the framework with the JFTC and the Ministry of Internal Affairs and Communications.

Apple and Google have already implemented alternative billing and browser changes for the European Union. The Japanese requirements narrow the scope to domestic users and may differ in technical details, which means platform teams will need Japan‑specific builds and policy variants. Local developers such as mixi, Gree, and Cygames, along with subscription services from Rakuten and LY Corporation, are preparing to test external billing flows.

For global tech companies, Japan’s move signals that app store and browser engine mandates are no longer an EU‑only phenomenon. Compliance roadmaps now need to account for jurisdiction‑specific variants in Asia, and business models that rely on mandatory in‑app payments and locked browser engines will face sustained regulatory pressure in one of the world’s highest‑spending mobile markets.