Japan has officially implemented the Mobile Software Competition Act (MSCA) as of December 18, 2025, a move designed to increase competition on major mobile platforms. The legislation targets Apple and Google, designated as “specified providers,” requiring them to allow third-party app stores, alternative payment providers, and linkouts to off-store deals. The act also prevents these platforms from favoring their own apps and services while mandating fair access to device capabilities such as NFC and APIs.
Impact on Developers and the Gaming Industry
The MSCA provides developers with a new level of regulatory certainty, particularly in Japan’s in-app purchase market, the third-largest globally. Archie Stonehill, chief growth officer at Stash, told PocketGamer.biz that the legislation creates opportunities for studios to operationalize direct-to-consumer (D2C) strategies. By providing legally supported options to bypass platform fees when economically beneficial, developers can now control their purchase flows more directly.
Unlike in the United States, where app developers have relied on litigation to challenge platform rules, Japan’s approach sets clear rules upfront. While more cautious than the European Union’s Digital Markets Act in areas such as sideloading and broader distribution, Japanese regulators explicitly question the fairness of the standard 30% platform fee. This opens the door for challenges to the traditional app store model.
Opportunities for Cross-Platform Monetization
Industry experts note that the MSCA complements similar regulatory developments in other markets, including Europe’s DMA and the Epic Games versus Google ruling in the United States. For developers, this alignment creates the potential for unified cross-platform monetization strategies. Instead of keeping platform revenue separate from lifecycle and economy systems, studios can now integrate D2C revenue directly into their broader business models, offering more predictable and margin-enhancing outcomes.
Early Adoption Advantage
While the specifics of enforcement will continue to develop, the trend toward more open platforms is clear. Studios that build their D2C and alternative payment systems early may gain a compounding advantage as Japan’s mobile ecosystem evolves. The MSCA is expected to reshape the way mobile games and apps are monetized, offering more options for developers and potentially lowering costs for users.
Frequently Asked Questions (FAQs)
What is Japan’s Mobile Software Competition Act (MSCA)?
The MSCA is a law that enforces fair competition on mobile platforms by requiring Apple and Google to allow third-party app stores, alternative payments, and fair access to device features.
Which companies are affected by the MSCA?
Apple and Google are designated as “specified providers” under the law, meaning they must comply with rules designed for large mobile platforms.
How does the MSCA impact app developers?
Developers gain legal certainty to implement alternative payments, bypass platform fees, and distribute apps through third-party stores, enabling direct-to-consumer monetization strategies.
Does the MSCA affect games and other apps differently?
The legislation applies broadly to all apps, but the gaming sector benefits notably due to high in-app purchase volumes and opportunities for D2C monetization.
How does this compare to regulations in other regions?
The MSCA is more proactive than U.S. approaches, which rely on litigation, and more cautious than the EU’s Digital Markets Act in terms of sideloading and distribution rules.
When did the MSCA come into effect?
The law has been in force since December 18, 2025.
AloJapan.com