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A survey released by the Mobile Content Forum (MCF), an app developer industry group, on the 26th found that even after the full implementation of Japan’s new smartphone law, adoption of alternative payment systems stands at just 8.8%, while alternative app store usage is only 5.9%. The most common reason cited for not using alternative payments was “no fee advantage” at 71%. Although Apple and Google have opened up alternative options, they still charge fees of up to 21-26%, leading MCF to warn that the law’s objectives have not been achieved and the situation is critical.
Key Elements
The Mobile Content Forum (MCF), an organization of app development companies, released survey results on the 26th targeting smartphone app businesses in Japan. Adoption of “alternative options” — app stores and payment methods provided by companies other than U.S.-based Apple and Google — has failed to gain traction, with only 8.8% of businesses using alternative payment systems.
Approximately eight months have passed since the “Smartphone Software Competition Promotion Act” (the new smartphone law) came into full force in December 2025, yet no notable improvement has been observed in the competitive environment of the app economy. MCF expressed strong concern, describing the situation as “critical, with the law’s objectives unfulfilled.”
The survey was conducted from July to August 2026, targeting 30 app businesses. Only 8.8% of respondents said they use alternative in-app payment methods other than those provided by Apple or Google. The most common reason for not using alternative payments was “no fee advantage,” cited by 71.0% of respondents.
Fee burden remains high even when choosing alternative options
Following the implementation of the new smartphone law, Apple and Google opened up their platforms to allow app developers to use app stores and in-app payment methods provided by third parties. However, even when using alternative payments, Apple charges fees of up to 21% and Google up to 26%. For approaches that build payment systems outside the app and direct userso 20% in fees
Before the law took effect, both companies required app developers to use their own payment systems, which carried fees of up to 30% on app transactions. The survey highlights that even after regulatory compliance, the fee levels incurred when choosing alternative options remain a significant burden for developers.
Adoption of alternative app stores is even lower, at just 5.9% for both Apple and Google platforms. MCF Executive Director Takamasa Kishihara noted, “The fees that Apple and Google impose on app developers, as well as the cumbersome installation procedures users must go through for alternative app stores, are factors hindering adoption.”
Key figures from the survey
| Item | Adoption rate |
|---|---|
| Alternative payment usage | 8.8% |
| Alternative app store usage | 5.9% |
| Reason for not using alternative payments: “no fee advantage” | 71.0% |
Note: Survey of 30 app businesses. Alternative app store adoption rate was 5.9% for both Apple and Google platforms.
Questions over regulatory effectiveness
The new smartphone law was enacted with the aim of correcting the market dominance of major tech companies that operate operating systems, app stores, and payment systems, and promoting competition. Apple and Google, which are subject to the regulation, announced compliance measures in December 2025, opening up alternative options and reducing fees.
However, the survey results demonstrate that even when institutional choices are made available, the law’s purpose of promoting competition cannot be achieved if actual adoption does not spread. Among app developers, there is a strong view that the fee burden incurred by choosing alternative options and the complexity of installation procedures for users serve as barriers, preventing these alternatives from functioning as viable choices in practice.
Based on the survey results, MCF intends to urge regulators to take effective measures to correct fee levels and eliminate factors hindering the adoption of alternative options. The future of the competitive environment surrounding the app economy hinges on how regulators respond going forward.
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