How Japan's Smartphone Act Changes App Marketing: The New Normal Marketers Need to Know

At the end of 2025, Japan’s smartphone market reached a major turning point: the full enforcement of the so-called “Smartphone Act” (the Mobile Software Competition Act, or MSCA). The long-standing vertically integrated model run by Apple (iOS) and Google (Android) is now under scrutiny, and the rules of the app business are being rewritten from the ground up.

This article lays out, based on facts, the changes app marketers are facing and the strategies worth pursuing now.

The Core of the Act: Four “Openings”

The Act targets “designated providers” (Apple and Google), whose domestic user base exceeds 40 million monthly users. It requires or prohibits the following.

• Legal basis: Act on Promotion of Competition for Specified Smartphone Software (Act No. 58 of 2024; スマートフォンにおいて利用される特定ソフトウェアに係る競争の促進に関する法律)
• Effective date: December 18, 2025 (Reiwa 7), full enforcement
• Competent authority: Japan Fair Trade Commission

Item	What it covers	Impact on marketers
Opening up app stores	Approval of third-party stores other than Apple/Google	More distribution channels and competition on fees
Free payment systems	Permitting proprietary in-app payments (external payments)	Avoiding the so-called “30% fee” and improving margins
Removal of default settings	Choice screens for browsers and search engines	“Web-to-App” strategies deliver better returns than ever
Ban on self-preferencing	Prohibition on ranking their own apps first in search results	Fairer search results mean more chances for exposure

Three Impacts Marketers Should Know

1. Moving Beyond the “30% Fee” and Reallocating Marketing Budgets

Until now, paying a flat 30% fee (15% under certain conditions), the so-called “Apple/Google tax,” was simply taken for granted. With external payments now possible, there is an option to hold payment fees to a few percent.

The winners will be those who can strategically reallocate the freed-up margin to “returns to users” (discounts, points) and “advertising spend for new user acquisition.”

2. Balancing User Experience (UX) and Security

Third-party stores and external payments can make users feel something is “suspicious” or “a hassle.” Apple and Google are also expected to show warnings citing security concerns.

The question is how well you can communicate the benefits of installing from outside the official store while building trust in your brand. Customer success matters more than ever.

3. From ASO (App Store Optimization) to “Comprehensive Search Optimization”

With browser and search engine choice now open, an acquisition strategy that depends on a single search engine carries risk. And because self-preferencing inside app stores is prohibited, the logic behind search rankings may become cleaner.

For keywords where the pre-installed first-party app used to be “locked at number one,” your app can now rank higher if it wins on user satisfaction and quality. Beyond SEO within a single store, you need a multi-channel acquisition design, including the use of deep links from web browsers.

Latest Industry Developments and Challenges (as of February 2026)

In early February 2026, industry groups issued an urgent statement calling for “genuinely free competition,” and some voices say the platform holders’ changes to their terms are insufficient. The Japan Fair Trade Commission continues to monitor whether the “new rules” presented by Apple and Google effectively make it hard to choose external payments, for example by charging fees under a different name even when external payments are used.

If you introduce external payments, the first point of contact for refunds and billing issues becomes the app operator (you), not the platform holder. Setting up customer support before you launch any marketing initiative is essential.

Conclusion: Treat the Change as an Opportunity, Not a Cost

The Smartphone Act is more than a regulation. It gives app operators a “weapon” to go beyond the platform holders’ constraints and connect directly with users.

Will you sit back and say, “We’re fine with just the App Store as before”? Or will you be quick to test new payment methods and distribution channels and maximize LTV (customer lifetime value)? 2026 will be a year that tests marketers’ “management perspective.”

We are moving from an era of being allowed to play in “Apple’s and Google’s garden” to one where you pave your own “road.” Drop the old assumption that “you can’t win unless you align with Apple/Google from the start,” and focus on two things: owning your web acquisition channels and pursuing a UX that surpasses the pre-installed apps. Those two will be the winning formula for app marketing in 2026 and beyond.

Is your app strategy, and your response to the new Act, fully prepared? We provide app marketing support based on the latest terms and conditions. Feel free to contact us.