On December 18, 2025, Japan's Smartphone Software Competition Promotion Act, commonly known as the "Smartphone Competition Law," came into full effect. Overseen by the Japan Fair Trade Commission, the law targets market dominance by Apple and Google and aims to open up competition in mobile app distribution and billing.

For years, app distribution and monetization on smartphones have effectively been controlled by these two companies. Developers paid high commissions with few alternatives, and users had limited choices. The new law is designed to change that structure.

Three Major Changes Coming to Google Play

1. External Website Redirects from Within Apps

The most closely watched change allows developers to send users from inside their apps to external websites to complete purchases. Previously, steering users away from in-app billing toward a developer's own site was largely prohibited.

Google has introduced a "participation program" that gives registered developers access to implementation APIs. Joining the program is free, but using it carries a fee: the rates announced on the day the law took effect are 20% as a rule, reduced to 10% for developers meeting conditions such as annual revenue of $1 million or less.

Compared with standard Google Play billing fees (30% for larger businesses, 15% for smaller ones), external redirects are not automatically cheaper. Still, the fact that developers now have the option at all, such as directing users from a game to an official website to buy items and complete the payment there, marks a real shift.

2. Browser and Search Engine "Choice Screen"

Android now displays a "choice screen" for browsers and search engines. During initial smartphone setup or after an OS update, users see a screen where they pick their default search engine and browser.

Five search engine candidates appear, chosen from the top providers that met requirements such as Japanese-language support. This lets users consciously pick alternatives to Google Chrome and Google Search. The feature has been rolling out since December 2 on smartphones running Android 15 or later, and iPhones gained a similar screen with iOS 26.2, released on December 13.

3. Expanded Third-Party Payment Services for Gaming Apps

Game developers gain the ability to offer third-party payment services for in-app content purchases without users leaving the app.

Japan has offered this option for non-gaming apps since 2022. With the new law in force, it extends to games, letting users choose among multiple payment methods inside the app.

Benefits for Users and Developers

For users, the clearest gain is choice. Browsers, search engines, and payment methods can now be selected rather than imposed, and familiar payment options may become available inside more apps. If developers' commission costs fall, some of that could translate into lower prices, though whether it does is up to each business.

For developers, the range of payment options has widened, and depending on the conditions, fees can be reduced. Handling payments on their own websites also gives them direct control over customer data.

Security Concerns to Consider

The spread of external payments brings risks of its own. Purchases made outside Google Play billing are not covered by Google's refund handling or buyer protections, and users will need to watch out for phishing pages and fraudulent checkout screens disguised as legitimate redirects.

On Android, alternative app stores and sideloading were already possible before the law. What changes now is mainly the payment layer, and with it the question of which payment services users choose to trust.

The Real Test Comes Later

The law's real impact should become clear over the next several months to a year. Watch whether external redirects and third-party payments actually catch on, whether the fee changes show up in app and content prices, and whether security incidents start to surface.

Similar rules already exist abroad, including South Korea's so-called "Anti-Google Law" and the EU's Digital Markets Act (DMA). Japan's law is part of that global current, and adjustments based on how it works in practice are likely. Whether it delivers genuinely fair competition will be decided not by the text of the regulation, but by how the market moves from here.

[Update] Six months on, the fight has narrowed to one question: how the fees are designed. On February 17, 2026, the Japan Fair Trade Commission published the compliance reports filed by Apple (Apple Inc. and iTunes K.K.) and Google. Both cited the choice screens and their acceptance of external payments and alternative stores, and said they had met every obligation, but app developers filed a string of requests for correction. Apple set the total commission at up to 26% when its own in-app purchase is used, and even developers who choose alternative payments still owe 21% or 10% for use of the App Store itself; industry groups argue that leaves no room for real competition. The first visible change came on the iPhone side. On May 1, Epic Games opened its alternative store, the Epic Games Store, for iPhones in Japan, bringing Fortnite back to iOS after roughly five years and eight months. No Japanese game developers joined at launch, and CEO Tim Sweeney criticized Apple for still charging a "core technology fee" on rival stores and for an installation process that takes nine steps in Japan against six in the EU. On May 19, Fortnite also returned to the App Store worldwide except Australia (as of September 2026). How far have the rules on app store fees and payment choice moved in your country?