Japan formally names Apple and Google under new smartphone software law, starts compliance clock

Japan on Wednesday designated Apple and Google as specified platform operators under its 2024 Smartphone Software Competition Promotion Act, starting a staged compliance timeline that runs through fiscal 2026. The move will force changes to iOS and Android in Japan, including allowing third party app stores and payment options, which matters given iPhone share near 70 percent and Japan’s heavy mobile game spending.

The Japan Fair Trade Commission and the Ministry of Internal Affairs and Communications also issued final enforcement guidelines that cover app store fees transparency, restrictions on self preferencing, and default choice screens for browsers and search. Violations can trigger surcharges of up to 20 percent of relevant domestic turnover, with higher rates for repeat offenses, according to the text of the act.

Regulators set the clock on app store and browser rules

The designation requires Apple and Google to submit detailed compliance plans, including technical pathways for third party distribution and billing, and to report on developer access terms. The guidelines reference coordination with the Ministry of Economy, Trade and Industry for implementation in areas that affect software distribution and payments.

Japan’s framework is narrower than the EU’s Digital Markets Act but goes further than South Korea’s billing law by covering mobile operating systems, browsers, and default settings in one regime. It could affect Google’s agreements with Android handset makers in Japan such as Sony, Sharp, and Kyocera, as well as carrier preload practices at NTT Docomo, KDDI, SoftBank, and Rakuten Mobile.

Why this matters for Apple, Google, and Japanese developers

Apple and Google have already re engineered parts of iOS and Android to comply with the EU DMA, and Japan adds another jurisdiction that will require region specific builds and support. App store commissions of 15 to 30 percent face direct pressure if developers in Japan can steer users to local payments such as PayPay, Line Pay, and credit card processors outside the proprietary systems.

Japan remains one of the largest markets for iOS consumer spend, particularly in games, which makes the rule set commercially material for companies like Bandai Namco, Square Enix, Gree, and Mixi that rely on mobile in Japan. Default choice requirements for search and browsers could also alter traffic flows and advertising economics for Google in a market where Yahoo Japan and other portals have strong distribution.

For the broader technology landscape, Japan’s enforcement adds to a patchwork alongside the EU and South Korea that global platforms must navigate, which raises engineering cost and increases the likelihood of feature fragmentation by market. It also opens room for domestic payment networks and carrier run app stores to re enter distribution on iOS and Android, which could shift some power back to local ecosystems.