Australia Forces Apple to Allow Rival iPhone App Stores
Australian court ordered Apple to allow rival app stores, sideloading and alternative payments on iPhone from March 1, 2027. Epic won. Apple will appeal.
Australia's Federal Court has ordered Apple to open the iPhone to rival app stores, direct app downloads and alternative payment services, starting March 1, 2027. The decision is a major win for Epic Games, which sued Apple over the restrictions. The orders follow a ruling last year that Apple misused its market power by blocking competition in iPhone app distribution and in-app payments. Apple has confirmed it plans to appeal, which could delay the changes.
What the court ordered
In a remedies judgment handed down on October 22, Justice Jonathan Beach ordered Apple to let iPhone users whose Apple Account region is set to Australia find, download, install and update apps through competing marketplaces and developer websites. Apple has until February 15, 2027 to ask the court for an extension of the deadline to May 3, 2027. The decision turns last year's liability findings into binding orders. In August 2025 the same judge found that Apple held a substantial degree of power in the iOS app distribution market and the iOS in-app payments market, and used its developer agreements and App Store guidelines to restrict competition, breaching section 46 of the Competition and Consumer Act 2010. Apple must give developers the tools and APIs needed for alternative distribution on substantially the same terms as App Store distribution. It cannot charge for access to competing stores, obstruct their use, or penalize developers for using them.
Payments get a shake-up
The biggest commercial impact may be on payments. Developers will be able to offer alternative in-app payment methods and link to other ways to pay, including inside App Store apps. Apple cannot force them to use its own purchasing system alongside alternatives, make them report those transactions, or audit them. Developers can offer lower prices through competing payment services, and Apple cannot stop them. The court also limited the fees Apple can collect: it cannot charge for purchases made through alternative payment services or websites in apps distributed outside the App Store. For apps sold through the App Store, fees are capped at the equivalent charge for payments for physical goods or services, plus any genuine, reasonable extra costs Apple incurs on digital purchases. The judge also singled out Apple's 2020 actions against Epic, including its refusal to allow Epic Direct Pay, the removal of Fortnite from the App Store, and the termination of Epic's developer account. Epic will get 85 percent of its legal costs from the original trial back.
Fortnite is back in Australia
One order takes effect right away: once Epic applies in writing, Apple must process its developer agreements and let Fortnite and its other apps back into the Australian App Store. Epic confirmed on X that Fortnite would return to the Australian store on October 22. Australia was the only country left out when Fortnite returned to iOS globally earlier this year, according to Engadget, because Epic was still fighting Apple over payment terms there. This week's ruling closes that gap. Australia is following a similar path to the European Union, where the Digital Markets Act forced Apple to allow alternative app marketplaces and web-based distribution with iOS 17.4 in 2024.
Apple will appeal
Apple does not have to give up its security checks. Apps distributed outside the App Store must still pass automated security and privacy scans and be notarized by Apple or a qualified third party, and Apple can remove apps for illicit or harmful content, real security risks, or where Australia's Online Safety Act requires it. But the court said Apple cannot add friction out of proportion to the actual security risk. Apple has said it disagrees with the findings and will seek a stay of the orders while it appeals. An Apple spokesperson said the company will seek a resolution that respects its intellectual property and protects the experience consumers and developers expect from the App Store.
Sources
- 9to5Mac - https://9to5mac.com/2026/10/21/apple-must-open-iphone-to-alternative-app-stores-in-australia-after-epic-games-ruling/ - MacRumors - https://www.macrumors.com/2026/10/22/rival-app-stores-in-australia-ordered/ - Digital Trends - https://www.digitaltrends.com/phones/australia-is-forcing-apple-to-loosen-its-grip-on-iphone-app-distribution/