Foreign residents in Japan will soon experience significant changes to their smartphone usage as new competition regulations take effect, while international efforts aim to help small and medium-sized enterprises adopt artificial intelligence technologies. Starting December 18, 2025, Japan's "Smartphone Law" officially comes into full force, targeting tech giants Apple and Google with regulations designed to promote free competition in the mobile app market, according to NHK. The legislation represents Japan's most substantial intervention in the smartphone ecosystem to date, with implications for how millions of users—including the country's expat community—access and download applications. The cornerstone of the new law requires Apple and Google to open their app stores to third-party competitors. Currently, iPhone users can only download apps through Apple's App Store, while Android users primarily rely on Google Play Store. This monopolistic control has long been criticized for stifling competition and limiting consumer choice. Under the new regulations, alternative app stores will be permitted to operate on both iOS and Android devices in Japan, potentially offering different pricing structures, exclusive apps, or specialized content. For foreign residents, these changes could bring both opportunities and considerations. Alternative app stores may offer better access to international applications that aren't currently available through official channels, or provide more competitive pricing for paid apps and in-app purchases. However, users will need to exercise caution, as third-party stores may have different security standards and vetting processes compared to the established Apple and Google platforms. The law also addresses other anti-competitive practices in the smartphone industry. According to NHK's detailed coverage, the regulations aim to prevent tech companies from unfairly prioritizing their own services and applications over competitors. This could mean more prominent placement for alternative payment systems, browsers, and other core smartphone functions that were previously dominated by default Apple or Google options. Experts interviewed by NHK suggest that the implementation period may take several months as companies adjust their systems and business practices to comply with the new requirements. Foreign residents should monitor announcements from Apple and Google regarding specific changes to their devices and services in the Japanese market. Meanwhile, on the international stage, Japan joined other G7 nations in committing to accelerate AI adoption among small and medium-sized enterprises, as reported by NHK on December 9, 2025. The agreement recognizes that while large corporations have rapidly integrated AI technologies, smaller businesses often lack the resources, infrastructure, and expertise to do the same. The G7 commitment focuses on two primary areas: developing high-speed communication infrastructure necessary for AI applications, and investing in human resource development to train workers in AI utilization. For expats operating small businesses in Japan or working in the SME sector, this initiative signals forthcoming government support programs and resources. The timing of these two developments—domestic smartphone competition reform and international AI support—reflects Japan's broader strategy to maintain technological competitiveness while ensuring fair market conditions. The smartphone law addresses consumer-facing technology, while the G7 AI initiative targets business productivity and innovation. Foreign entrepreneurs and business owners in Japan should watch for specific program announcements related to the G7 AI commitment. These may include subsidies for AI implementation, training programs with multilingual support, or infrastructure improvements in business districts. As these regulations and initiatives roll out, expats should stay informed about changes to their devices and new business support opportunities. The smartphone law's December 18 implementation date marks just the beginning of what could be a transformative period for Japan's digital landscape, affecting daily life and business operations for residents of all nationalities.