APPLE is making changes to its iOS software in Japan to comply with a new local law aimed at fostering competition, part of broader efforts by the iPhone maker to adapt to regulations around the world.
The company announced a compliance plan on Wednesday for Japan’s Mobile Software Competition Act, or MSCA, which was passed last year and goes into effect this week.
The changes affect the operating system’s payment options, alternative app marketplaces and browser choices. Apple said it worked closely with Japanese regulators on the updates, which are now available in the country as part of iOS 26.2.
Apple also faces similar regulatory scrutiny in the European Union. That region’s Digital Markets Act, which seeks to level the playing field for online platforms, has sparked tension with Apple and forced the company to make adjustments.
The Cupertino, California-based company has said that stricter regulations can make it harder to protect user safety and privacy. At the same time, the rules have threatened to upend an App Store business model that generates billions of dollars a year for Apple.
In Japan, the changes are meant to give developers the ability to choose how to process payments for digital goods and services. They also will provide more control over how they distribute apps through alternative marketplaces. And the updates make it easier for users to choose their preferred browser and search engine.
However, the company warned that some of these changes may pose new risks for iOS users in Japan by potentially opening them up to malware, fraud and scams.
To help reduce the possible hazards, Apple is relying on a “notarization” system – a combination of automated checks and human review – to assess the basic functionality and security threats of all iOS apps.
But the company said this is less comprehensive than the full App Store review, and other marketplaces can decide to have their own additional policies for review.
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Japanese developers will now have three options for handling payments: continuing to rely on Apple’s in-app purchases; using an alternative payment service provider inside their app; or linking customers to a website to complete the transaction.
The company is also introducing new business terms with different commission rates and fees depending on how developers choose to distribute their apps and process payments. Apple said some of the changes could expose children to more risks, but it worked with regulators on guardrails, including restricting links to external websites for users under 13.
An Apple spokesperson said the company doesn’t have plans to bring these changes to other countries because it believes its existing system provides superior user safety and developer opportunities.
The spokesperson also said the company believes Japan is taking a better approach than the EU, stating that the DMA has forced Apple to make changes that create a more confusing experience and introduce greater risks. For instance, mandates aimed at making technology compatible could expose sensitive user data, like Wi-Fi history or notifications, Apple said.
The latest changes follow this week’s beta release of iOS 26.3, which includes several features tied to regulatory demands. The software includes new tools that make it easier to transfer data from an iPhone to an Android device and forward notifications to third-party watches. BLOOMBERG
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