Photo/Illutration A new law in Japan allows smartphone users to install apps from alternative marketplaces beyond Apple’s App Store and Google’s Play Store. (Asahi Shimbun file photo)

Apple Inc. and Google LLC announced sweeping changes to their app distribution and payment rules in Japan on Dec. 18 to match the country’s new law aimed at promoting competition in smartphone services and reducing consumer costs.

The legislation is designed to reduce the two tech giants’ dominance by breaking up their tightly controlled ecosystems of operating systems, app stores and payment systems.

Under the new rules, iPhone users can install apps from alternative app stores, ending Apple’s long-standing restriction.

App developers will also be allowed to provide links to external payment sites, something that will give users greater flexibility in how they pay.

As a result, Apple has reduced its commission fees for developers from a maximum of 30 percent to a range of 5 to 26 percent depending on the method of distribution and payment.

Users will additionally be presented with options to select their preferred browser during initial setup, rather than the automatic default to Apple's Safari or Google's Chrome.

Officials believe that opening the market to alternative app stores and payment services will foster competition, ultimately driving down the fees that consumers pay for apps and digital content.

The law targets practices that critics say locked users and developers into proprietary ecosystems.

Apple stated that while it will conduct basic security checks for all apps to guard against threats, responsibility for screening fraud and harmful content will rest with the operators of each app store.

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