Apple has been ordered to allow third-party app stores, direct app downloads and alternative payment systems on iPhones in Australia following a Federal Court ruling in its long-running competition dispute with Epic Games.
The decision requires Apple to remove restrictions that prevent developers from distributing iOS apps outside the App Store and using competing payment services. Most of the changes are scheduled to take effect on March 1, 2027, although Apple can seek an extension until May 3.
The ruling follows a 2025 judgment finding that Apple misused its market power in Australia’s iOS app distribution and in-app payment markets. Apple has confirmed that it intends to appeal the decision and request a stay, potentially delaying implementation.
Federal Court Justice Jonathan Beach ordered Apple to permit alternative app distribution methods for users whose Apple Accounts are registered in Australia. Under the orders, developers will be able to distribute iOS apps through competing marketplaces and directly from their websites, rather than relying exclusively on Apple’s App Store.
The changes also require Apple to provide developers with access to relevant development tools on substantially equivalent terms, preventing the company from using technical restrictions to disadvantage competing distribution channels.
The court rejected Apple’s existing restrictions on alternative app distribution, finding that they limited competition in the Australian market.
The remedies apply to Australian Apple Accounts, regardless of where participating developers or payment providers are based.
However, the court declined Epic Games’ request to extend the requirements worldwide.
The decision does not eliminate Apple’s ability to impose legitimate security protections. The company may continue to require security scanning and app notarization, provided those measures are necessary and proportionate rather than designed to restrict competing distribution services.
The court also ordered Apple to allow developers to use third-party payment systems and direct customers to external purchasing options. Under the new requirements, developers distributing apps through Apple’s App Store will be able to offer alternative in-app payment methods and links to outside purchasing websites.
Apple will also be prohibited from imposing fees on transactions conducted through applications distributed outside its App Store. The restrictions extend to certain conditions and charges that could discourage developers from adopting competing distribution or payment services.
These provisions address Apple’s existing business model, which has traditionally required developers selling digital goods and services through iOS applications to use its payment infrastructure and pay commissions on eligible transactions.
Fortnite returns to Australia’s App Store following court order
The judgment also requires Apple to readmit Fortnite and other eligible Epic Games applications to the Australian App Store, subject to compliance with applicable rules that are consistent with the court’s orders.
Unlike the broader app distribution changes, the reinstatement requirement takes effect immediately.
The dispute began in August 2020, when Epic introduced a direct payment option in Fortnite that bypassed Apple’s in-app purchasing system. Apple subsequently removed the game from the App Store and terminated an Epic developer account, prompting legal proceedings in multiple jurisdictions.
In Australia, the Federal Court found in 2025 that Apple’s restrictions on alternative distribution and payment services breached Section 46 of the Competition and Consumer Act 2010.
The October 2026 decision establishes the remedies arising from those findings.
The court also ordered Apple to pay 85% of Epic’s legal costs associated with the original liability proceedings.
Apple has rejected aspects of the ruling and confirmed plans to challenge the decision.
The company said it would request a stay and appeal to protect its intellectual property and maintain the security standards associated with the App Store.
The Australian decision adds to regulatory and legal challenges facing Apple’s mobile application business in other markets.
In the European Union, the Digital Markets Act has already required Apple to introduce alternative app distribution options, while legal proceedings in the United States have focused on restrictions affecting external payment methods.
Australia’s ruling differs in several respects, particularly its restrictions on fees associated with alternative app distribution and payments.
The court also rejected Apple’s request to limit the duration of the remedies to five years, leaving the orders without a fixed expiration date. They may nevertheless be varied or discharged by the court if circumstances change.
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