In order to adapt to the new law, Apple opens payment and third-party app stores in iOS in Japan and warns users of rising security risks

The Zhitong Finance App has learned that Apple (AAPL.US) is adjusting its iOS software in Japan to comply with a new local law aimed at promoting competition; this is part of the iPhone maker's broader move to adapt to global regulations.

The company unveiled a compliance plan on Wednesday in response to Japan's Mobile Software Competition Law (MSCA) passed last year and came into effect this week. The relevant adjustments relate to the operating system's payment options, alternative app markets, and browser choices. Apple said it worked closely with Japanese regulators to complete these updates, which are now being rolled out in Japan as part of iOS 26.2.

Apple is facing similar regulatory scrutiny in the European Union. The region's Digital Marketplace Act (DMA) aims to level the playing field for online platforms, which has sparked tension with Apple and forced the company to make adjustments.

The Cupertino, California-based company said stricter regulations could make it harder to protect users' security and privacy. At the same time, these regulations also threaten to disrupt Apple's App Store business model, which generates billions of dollars in revenue every year.

In Japan, these changes are aimed at enabling developers to choose how to handle payments for digital goods and services. They will also give developers more control over distributing apps through alternative app marketplaces. Additionally, these updates will make it easier for users to choose their favorite browsers and search engines.

However, Apple warned that some of these changes could present new risks to iOS users in Japan, which could expose them to malware, fraud, and scams.

To help mitigate potential risks, Apple relies on a “notarization” system — combined with automated checks and manual reviews — to assess basic functionality and security threats for all iOS apps. However, the company said that this is not as comprehensive as the App Store review, and other app marketplaces can decide to establish additional review policies at their own discretion.

Japanese developers will now have three ways to process payments: continue to rely on Apple's in-app purchases; use alternative payment service providers within their apps; or direct customers to websites to complete transactions.

The company has also introduced new terms of business, charging different commission rates and fees based on how developers choose to distribute apps and process payments. Apple said some of these changes could put children at greater risk, but it has worked with regulators to put relevant safeguards in place, including restricting users under 13 from accessing links to external websites.

An Apple spokesperson said that the company has no plans to extend these changes to other countries because the existing system can provide users with a higher level of security and better opportunities for developers. The spokesperson also said that Japan's approach is superior to the European Union — the adjustments forced by Apple under the Digital Market Act brought about a more confusing experience and introduced greater risk. For example, mandatory provisions aimed at improving technical compatibility could expose users' sensitive data, such as Wi-Fi history or notifications, Apple said.

These latest adjustments follow the release of iOS 26.3 beta this week, which includes a number of features related to regulatory requirements. The software added tools to transfer data from iPhone to Android devices and forward notifications to third-party watches.