Japan issues final rules forcing Apple and Google to open app stores and payments

Japan’s Fair Trade Commission on Wednesday published final enforcement guidelines for the 2024 Act on Promotion of Competition for Specified Smartphone Software in Tokyo, setting obligations for Apple and Google to allow third party app stores and alternative in app payments. The regulator said compliance checks will begin within the current fiscal year, citing penalties that can reach up to 20 percent of related domestic revenue for repeated violations.

The move matters because Japan is one of Apple’s highest share markets, and the rules extend beyond the European Union model to include explicit access to near field communication for third party wallets. Domestic payment firms and carriers say the changes will alter fees and default settings that have shaped app monetization for a decade.

What the new rules require

The JFTC guidelines confirm that designated operating system and app store providers must allow third party distribution and billing, and cannot impose anti steering clauses or discriminatory fees on developers that use outside payments. They also prohibit self preferencing in search, browser defaults, and rankings, and require transparency in review, data access, and interoperability.

On hardware features, the document states that core device capabilities like NFC must be available on fair and reasonable terms for third party wallets, removing a long standing barrier for non transit payment apps on iOS. The rules apply only to providers formally designated by the JFTC based on domestic share thresholds, which industry officials expect will include Apple and Google.

Why it matters for platforms and payments

Apple and Google will need Japan specific compliance plans that may diverge from their European Union implementations, including fee structures for external billing and technical access to device APIs. Carriers such as KDDI and NTT Docomo are expected to expand their Android app stores and billing, while PayPay, Rakuten Pay, and Line Yahoo can pursue deeper in app integration if NFC and policy access widen.

Developers in Japan’s mobile gaming market, including Cygames, Mixi, and Bandai Namco, will gain new leverage on payment terms in a country where iPhone units regularly hold above 50 percent share. The JFTC said it will coordinate with the Digital Agency and the Ministry of Internal Affairs and Communications on monitoring and sanctions.

For the global tech landscape, Japan’s enforcement adds another major jurisdiction setting detailed platform conduct rules, increasing the cost of fragmented compliance across key markets. It also brings NFC access into the regulatory toolkit in Asia, a signal that payments and device feature control are moving to the center of app competition policy.