Apple (AAPL) announced on Wednesday upcoming changes to iOS apps in Japan as it moves to comply with the country’s Mobile Software Competition Act, signaling new rules that will impact app developers, platform practices, and competition in the Japanese mobile software market.
“These updates create new options for developers to distribute apps on alternative app marketplaces and to process app payments for digital goods and services outside of Apple In-App Purchase,” the company said.
With the MSCA’s new requirements, alternative app marketplaces will need to be authorized by Apple and must meet ongoing requirements to serve developers and users.
“However, apps downloaded outside the App Store will not benefit from the same protections Apple provides through App Review, introducing new risks for apps that contain scams, fraud, and abuse, or that expose users to illicit, objectionable, or harmful content not allowed on the App Store,” Apple said in a post on Apple Newsroom and on its developer website.
The company added that for apps that use alternative payment processing or link users to the web for transactions, Apple will not be able to issue refunds and will have less ability to support customers encountering issues, scams, or fraud.
Additionally, under Apple’s (AAPL) updated business terms for iOS apps in Japan, the company will continue to charge commissions only on digital goods and services, with most developers paying a reduced 10% rate and a higher 21% rate applied to certain transactions.