Japan’s New Law to Force Apple in Opening App Store to Third Party App Marketplaces Like EU’s DMA

A recent law passed by the Japanese government will soon require Apple to open its App Store to third-party marketplaces, a.k.a. alternative app stores. The law is similar to the European Union's Digital Markets Act (DMA) but is more focused on an antitrust statute that targets Big Tech, allowing platforms to distribute apps where they prefer.

While this mostly targets Apple, it also affects other Big Tech companies like Google, one that could open up iOS more for a non-EU country.

Japan's New Law to Force Apple in Opening App Store

Kyodo News reported that the Japanese parliament recently passed a new antitrust law that targets Big Tech in opening up the experiences on their app stores, including Apple and its App Store. This move will restrict Apple and other companies from preventing app developers from being bound to a single app distribution platform, allowing them to opt for other markets.

Apart from this, tech companies would not be allowed to restrict developers to their first-party payment platforms, allowing developers to choose their preferences.

The report added that the new law also restricts Apple and Big Tech companies from highlighting their services on search results over others.

Third-Party App Marketplaces for Japan's iOS

This new antitrust law centers on allowing third-party marketplaces for Japan's iOS experiences to be available for both developers and users, essentially similar to the EU's DMA. If a company fails to adhere to this new regulation, it will be fined 20 percent based on its local revenue in Japan, increasing to 30 percent if it does not.

Japan's new antitrust law will take effect by the end of 2025.

EU's DMA and iOS Third-Party App Stores

The first-ever instance of sideloading apps for Apple's iOS (apart from the jailbreak process) was made possible through the EU's DMA law, which has recently taken effect. It was only available in EU member countries affected by the law, which requires Apple to comply with its iOS App Store's prohibitions and regulations or pay a massive fine imposed by the organization.

Apple set massive requirements for this new setup in the EU, allowing app developers to meet certain conditions before distributing on the web or via third-party app stores. First, an app should have 1 million downloads on the Apple App Store in the previous year, 2023, to be eligible to opt for third-party experiences.

Developers were also required to pay a certain amount if they decided to sideload their apps via other marketplaces or the web.

The EU has made a landmark in the tech industry for strong-arming Apple to open up its experiences, and Japan's new law is on its way to these third-party marketplace experiences for iOS users in the country.