Apple users in Japan might soon be able to download apps onto their iPhones outside of the confines of the App Store and pay less for them.
The government of Japan is preparing to crack down on app stores operated by Apple and Google, Nikkei Asia reports. Details of regulations will be worked out in Spring 2024 when the bill will be sent to parliament.
The Japanese Fair Trade Commission could fine violators around six percent of the revenue earned from app sales in the country unless they comply with the bill.
Japan forcing Apple and Google to allow alternative app stores and billing
Legislation slated to be sent to the parliament in 2024 would restrict moves by platform operators to keep users in the operators’ own ecosystems and shut out rivals, focusing mainly on four areas: app stores and payments, search, browsers and operating systems.
Apple doesn’t allow third-party billing for App Store transactions, like app downloads and in-app payments, in order to protect its 30 percent cut of proceeds.
Unfortunately, this translates into higher prices for consumers. Apple also prohibits alternative app stores on the iPhone. Google on its part does allow third-party app stores on Android but still requires apps to use its billing system.
But once Japan implements new legislation, local developers would be able to “run dedicated game stores on iOS devices, as well as use payment systems with lower fees from Japanese fintech companies,” Nikkei explains.
What about the US and Europe?
In the United States, Google has agreed to pay a $700 million settlement in an antitrust case Epic Games filed against it. Epic sued Apple earlier but failed to secure victory. However, the court issued an injunction requiring Apple to kill anti-steering provisions and allow external app payment options.
The company has yet to implement changes to let developers add a button or a link to their apps that takes customers to web sites with  third-party billing options.
Japan isn’t the only market where Apple will need to make changes to the App Store business model. The company is already preparing for this eventuality in the European Union, where the Digital Markets Act prohibits so-called gatekeepers from restricting third-party app stores and external payments.
As a result, a future iOS software update will permit alternative app stores on the iPhone, but only for European customers.