Third-Party App Stores Now Legal in Japan: Major Blow to Apple and Google

Japan has followed the European Union’s lead by forcing major tech companies like Apple and Google to allow third-party app stores on their devices. This means these platforms must now allow third-party app stores access on their devices in Japan. This is not just a minor policy adjustment; it is a change that will significantly impact the app market across the country.

In this blog, we’ll discuss:

• What these changes are and why they were introduced.
• How they will affect users and developers.
• What this means for users of third-party stores like Scarlet.

Background of Regulatory Changes

Japan’s upper parliament has passed a law to promote fair market practices. Under this law, companies like Apple and Google are now required to let users access and install apps from external sources. The main goal is to allow third-party apps on devices running iOS and Android. Users and developers will also have the choice to use any payment gateway, not just the default ones provided by these platforms.

This step was taken by the Japan Fair Trade Commission (JFTC), which works to prevent monopolies and protect user rights. The decision is based on the Antimonopoly Act, which focuses on eliminating unfair trade practices. It addresses how Apple and Google have created a type of monopoly to push their own ecosystems.

Because of this law, Apple and Google must change their app store rules to allow third-party app stores and alternative payment methods. This decision is part of Japan’s efforts to introduce policy reforms through its regulatory bodies.

What Are Third-Party App Stores?

Alternative app stores, like Scarlet and AltStore, are platforms where iOS users can access apps that are not available on the official app store. For example, Scarlet allows users to access modded games, tweaks, and banned apps without needing to jailbreak their devices. Similarly, AltStore is another popular third-party installer that lets iOS users sideload various apps, including those not offered on the App Store.

Key Changes for Apple and Google

Under Japan’s new law:

• Third-Party App Stores: Users will now be able to access third-party app stores on their devices without needing to jailbreak or use IPA installer tools like Scarlet or AltStore. Previously, these tools required apps to be eSigned, which Apple often revoked after seven days. This restriction will no longer apply.
• Alternative Payment Methods: Users and developers can now use payment methods other than Apple and Google’s official gateways. For example, in Apple’s ecosystem, in-app purchases and subscriptions previously had to go through Apple Pay, which charged a commission of 5% to 30% per transaction. Now, developers can integrate other payment methods, such as digital wallets, local payment systems, or even cryptocurrency. This change will help users avoid Apple’s high transaction fees and give them the freedom to choose the payment method that suits them best.

Impact on Users

• More Freedom: iPhone and iPad users are no longer limited to apps available on the official App Store. They can now access and install software that might be banned or unavailable on the official store for various reasons.
• Lower Costs: Using alternative payment gateways for in-app purchases or subscriptions can offer a more affordable option for users.
• Payment Choice: Users will no longer be restricted by Apple and Google’s payment policies, giving them the flexibility to choose their preferred payment method.

Impact on Developers

• Lower Fees: Developers previously had to pay to upload their apps on official app stores. Now, they can use free third-party platforms to distribute and promote their apps without these costs.
• Alternative Monetization: Developers won’t need to pay the high fees associated with Apple and Google’s native payment systems. They can now use any payment method that is more cost-effective for them.
• Broader Reach: Apps that were previously restricted can now be made available to a larger audience.

Global Trends and Japan’s Influence

This type of law is not limited to Japan. Apple had already made policy changes in response to pressure from the European Union. After the iOS 18.3 update, users in the EU can install apps like Scarlet without needing to jailbreak their devices. Similar regulations are also being discussed in the USA, and it is expected that such laws will be passed there soon as well.

Advantages for Scarlet Users

Scarlet iOS is a tool that provides access to trusted repositories and verified apps, making sideloading secure and user-friendly. However, until now, installing apps directly on iPhones and iPads required a custom certificate, which Apple frequently revoked.

Even if installed using a Windows PC, users had to reconnect their device every seven days to refresh the apps. But with these new changes, Japanese users will no longer face these issues. They can now use the Scarlet iOS app store on their devices without worrying about certificate revocations or constant re-installation.

How Apple and Google Are Responding to This Law

Apple responded to the new law in Japan through its official channels, saying:
“We will continue our engagement with the Japan Fair Trade Commission during the implementation period… concerned about how the law will impact Japanese consumers and the secure and private iPhone experience our users have come to expect.”

Google also released a similar statement in response to Japanese demands:
“We have proactively engaged with the government to explain our practices and contributions to this dynamic and highly competitive sector. We will continue to collaborate with the government and industry stakeholders throughout this process.”