Apple and Google announce their response to Japan's new smartphone law, including changes to billing systems and reduced app fees

4 min read Original article ↗

The '

Act on Promotion of Competition Relating to Specified Software Used on Smartphones (Smartphone Software Competition Promotion Act/Smartphone Act) ' came into effect on December 18, 2025. In response to this, Apple and Google have announced their response measures.

Smartphone Software Competition Promotion Act (Smartphone Act) | Japan Fair Trade Commission
https://www.jftc.go.jp/msca/

Enforcement Order of the Act on Promotion of Competition Relating to Specified Software Used on Smartphones | e-Gov Law Search
https://laws.e-gov.go.jp/law/506CO0000000376

·table of contents
◆1: What is the Smartphone Law?
◆2: Apple's response
◆3: Google's response

◆1: What is the Smartphone Law?
The Smartphone Act is a law that targets 'specific software providers' that provide the 'operating systems,' 'app stores,' 'browsers,' and 'search engines' necessary for smartphones to function. It imposes restrictions on specific software providers, such as 'not preventing other providers from providing app stores,' 'not preventing the use of other payment systems,' and 'must display a selection screen for default settings for browsers, etc.'

On March 26, 2025, three companies, Apple Inc., iTunes Inc., and Google LLC, were designated as specified software businesses, and the Smartphone Act can be said to essentially be a law that regulates Apple and Google.

The Fair Trade Commission has also released an explanatory video on the Smartphone Law.

Smartphone Law Explanation Video 'Did you know? Smartphone Law' - YouTube

◆2: Apple's response
Following the implementation of the Smartphone Law, Apple announced changes to iOS in Japan on December 18, 2025, Japan time.

Apple announces changes to iOS in Japan - Apple (Japan)
https://www.apple.com/jp/newsroom/2025/12/apple-announces-changes-to-ios-in-japan/

One change that will have a major impact on users is that they will be able to download apps from 'alternative app marketplaces' instead of the App Store. Alternative app marketplaces must meet certain standards and be approved by Apple, but it's possible that there will be more app stores other than the App Store in the future.

Additionally, while previously in-app purchases for iPhone apps required the use of Apple's payment system, from now on, payment systems provided by companies other than Apple will also be available.

Additionally, the App Store fees paid by app developers to Apple have been reduced. Developers enrolled in the App Store Small Business Program, Mini Apps Partner Program, and Video Partner Program will pay a 10% fee, while those enrolled in subscriptions from the second year onwards will also pay a 10% fee. All other fees will be reduced to 21%. Additionally, the fee for charges made using Apple's payment system will be 5%, and those using alternative app marketplaces will be required to pay a Core Technology Fee (CTC) of 5% of their sales to Apple.

The Smartphone Act also requires the display of a '

choice screen ' for choosing a browser and search engine. iOS 26.2, released on December 12, 2025, now displays a screen for selecting a default browser when launching a browser for the first time after updating the OS.

◆3: Google's response
Google has also announced its response to the Smartphone Law on its official Japanese blog.

Regarding compliance with the Smartphone Software Competition Promotion Act
https://blog.google/intl/ja-jp/company-news/outreach-initiatives/complying-with-mobile-software-competition-act/

In Japan, Android has supported in-app purchases using payment systems other than Google's since 2022, but only for 'non-game apps.' With the Smartphone Act coming into effect, the 'non-game apps' restriction will be lifted, allowing all apps to use payment systems other than Google's. Additionally, apps will be permitted to display both the 'Purchase via Google Play's billing system' and 'Purchase on their own website' options side by side.

Additionally, a choice screen will be displayed when you launch Chrome. The image below shows the browser selection screen.

There is also an image of the search service selection screen. The choice screen display function in Chrome will be gradually rolled out.

The Fair Trade Commission has set up a consultation desk regarding the Smartphone Law.

Smartphone Software Competition Promotion Act (Smartphone Act) Consultation Desk
https://www.msca-soudan.jftc.go.jp/