Australian court orders Apple to allow alternative app stores and payment methods on iPhone

Ruling details

An Australian federal judge ordered Apple to change its App Store rules after a multi-year antitrust case brought by Epic Games. Justice Jonathan Beach found that Apple holds a substantial degree of power in the iOS app distribution market and the iOS in-app payment market and used its developer agreements to restrict competition.

The decision lists practices such as blocking downloads outside the App Store, preventing alternative distribution channels, requiring Apple’s in-app payment system, prohibiting links to other payment methods, forcing developers to offer content purchased elsewhere through Apple’s system, and preventing developers from handling refunds directly.

Required changes

Apple must allow Australian iPhone users to install apps from third-party stores and websites starting March 1 2027. The company may request an extension until May 3 2027 subject to court approval. Developers will be able to use payment systems other than Apple’s, include external payment links in their apps, and access the APIs and tools needed for alternative distribution on substantially the same terms as App Store developers. Fees for accessing alternative channels are prohibited, certain fees on external payments are limited, and developers may offer lower prices outside Apple’s payment system. Epic Games’ apps, including Fortnite, must be readmitted to the Australian App Store immediately upon a written request from Epic.

Reactions and next steps

Epic Games welcomed the ruling and announced that Fortnite will return to the Australian App Store on October 22, 2026. Apple said it will request a stay and appeal the decision to protect its intellectual property and the secure experience it provides. The court also ordered Apple to pay 85 percent of Epic’s legal costs from the original trial while reserving a decision on costs from later hearings.

Sources: 9to5Mac · Federal Court of Australia