Australian court orders Apple to allow alternative app stores on iPhone

Federal judge rules in Epic Games antitrust case; Apple says it will appeal

By LineZotpaper
Published
Read Time2 min
An Australian federal judge has ordered Apple to let Australian iPhone users install apps from third-party stores and websites from March 1, 2027, in a sweeping antitrust ruling in the long-running case brought by Epic Games. Apple has confirmed it will appeal.

In a 235-page decision, Justice Jonathan Beach found that Apple violated Australian competition law by restricting alternative app distribution and payment methods. The judge said Apple held "a substantial degree of power in the iOS app distribution services market and the iOS in-app payment solutions market," and used its developer agreements and App Store guidelines to restrict competition.

The practices singled out included blocking app downloads and installations outside the App Store, requiring developers to use Apple's in-app payment system, prohibiting links to alternative payment methods, and preventing developers from handling refunds directly. The ruling also cited Apple's actions against Epic Games in 2020, including Fortnite's removal from the App Store and the termination of Epic's developer account, which the judge described as "a paradigm example of Apple's enforcement of its restrictive terms" in breach of section 46 of Australia's Competition and Consumer Act 2010.

The orders require Apple to allow alternative app stores and sideloading, permit alternative payment methods and external payment links, provide access to developer tools on substantially the same terms as those offered to App Store developers, and restrict fees and other barriers. The court also ordered Apple to readmit Fortnite and other eligible Epic Games apps to the Australian App Store. That readmission order takes effect immediately, while the broader changes apply from March 1, 2027, with Apple able to request an extension to May 3, 2027 by February 15, subject to court approval.

The court rejected Epic's request to extend the orders worldwide and allowed Apple to maintain security scanning and notarization requirements for apps distributed outside the App Store. Apple was also ordered to pay 85% of Epic's legal costs incurred through the original trial.

Epic said Fortnite would be available on the Australian App Store again from the following day, calling the decision "great news for developers worldwide and iOS users in Australia." Apple said in a statement to Reuters: "We will request a stay and appeal the outcome to seek a resolution that respects our intellectual property and protects the safe, secure experience that consumers and developers expect from the App Store."

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Analysis

Why This Matters

  • The ruling forces Apple to open the iPhone to third-party app stores and sideloading in Australia, a significant change to how it controls app distribution and payments in that market.
  • It adds to mounting regulatory and legal pressure on Apple over its App Store practices in other regions.
  • Australian developers and users could gain access to alternative payment systems and lower-cost distribution channels once the changes take effect.

Background

The case stems from Epic Games' attempt to bypass Apple's in-app payment system, which led to Fortnite's removal from the App Store and the termination of Epic's developer account in 2020. Last year, the Federal Court found that Apple breached Australian competition law. This latest decision sets out the remedies, including specific timelines, while Apple's planned appeal means the final outcome remains uncertain.

Key Perspectives

Apple: Maintains that the App Store provides a safe, secure experience for consumers and developers, and says it will request a stay and appeal the outcome to protect its intellectual property.

Epic Games: Welcomes the decision as an opening of the iOS ecosystem in Australia, and says Fortnite will return to the Australian App Store immediately.

Skeptics and limits of the ruling: The court also limited Epic's victory by refusing a worldwide injunction and allowing Apple to keep security scanning and notarization requirements, so the practical effect on Apple's broader business may be narrower than the headline suggests.

What to Watch

  • Apple's appeal and request for a stay, which could delay implementation of the orders.
  • Whether Apple asks the court by February 15 to extend the March 1, 2027 deadline to May 3, 2027.
  • How quickly Fortnite reappears on the Australian App Store, since that order takes effect immediately.
  • Whether other developers begin preparing alternative app stores and payment options ahead of the 2027 deadline.

Sources

Checked

11 claims in this story checked against 1 source: 8 supported.

Show each claim
  1. SupportedJustice Beach said Apple held “a substantial degree of power in the iOS app distribution services market and the iOS in-app payment solutions market.”9to5Mac: “Justice Jonathan Beach said Apple held “a substantial degree of power in the iOS app distribution services market and the iOS in-app payment solutions market,””
  2. SupportedJustice Beach described the cited actions as “a paradigm example of Apple's enforcement of its restrictive terms”.9to5Mac: “Justice Beach described the latter two actions as “a paradigm example of Apple’s enforcement of its restrictive terms, in contravention of” section 46”
  3. SupportedEpic called the decision “great news for developers worldwide and iOS users in Australia.”9to5Mac: “celebrated it as “great news for developers worldwide and iOS users in Australia who will benefit from an open mobile app ecosystem.””
  4. SupportedApple said, “We will request a stay and appeal the outcome to seek a resolution that respects our intellectual property and protects the safe, secure experience that consumers and developers expect from the App Store.”9to5Mac: ““We will request a stay and appeal the outcome to seek a resolution ​that ​respects our ⁠intellectual property and protects the safe, ​secure experience that consumers ​and ⁠developers expect from the App Store.””
  5. SupportedAn Australian court ordered Apple to allow alternative app stores on iPhone.9to5Mac: “Allow alternative app stores and sideloading : Let Australian iPhone users download and install apps directly from websites and third-party marketplaces.”
  6. SupportedApple has confirmed it will appeal.9to5Mac: “Apple has confirmed that it plans to appeal.”
  7. Partly supportedThe order allows Australian iPhone users to install apps from third-party stores and websites from March 1, 2027.9to5Mac: “Apple must allow iPhone users with Australian Apple Accounts to install apps from third-party app stores and websites starting March 1, 2027”
  8. Partly supportedIn the 235-page decision, Justice Jonathan Beach found Apple had violated Australian competition law.9to5Mac: “Today’s order follows a ruling last year that Apple violated Australian competition law by restricting alternative app distribution and payment methods”
  9. Partly supportedThe court ordered Apple to readmit Fortnite and other eligible Epic apps to the Australian App Store, effective immediately.9to5Mac: “Allow Fortnite and other eligible Epic Games apps back onto the Australian App Store, subject to compliance with applicable developer rules. (Importantly, this specific order is not subject to the March 2027 deadline, but rather takes effect immediately, with Apple required to act upon receiving a written application from Epic.)”
  10. SupportedApple may request an extension to May 3, 2027, by February 15, subject to court approval.9to5Mac: “Apple has until February 15 to request an extension until May 3, 2027, subject to court approval.”
  11. SupportedApple was ordered to pay 85% of Epic’s legal costs incurred through the original trial.9to5Mac: “the court ordered Apple to pay 85% of Epic’s legal costs incurred through the original trial”

Zotpaper

Written by Rex Doyle on the Business & markets desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub. Plate by Ollie Flash, picture desk.

1 source8 of 11 claims matched to a sourcefirst published
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