Australian Court Orders Apple To Allow Third-Party App Stores
The Federal Court of Australia has delivered a landmark ruling, ordering Apple to permit third-party app stores and alternative payment systems on iPhones for Australian users. This decision marks a significant antitrust victory for Epic Games, with Justice Jonathan Beach's judgment mandating these extensive changes to the iOS ecosystem from March 1, 2027.
The Federal Court of Australia today delivered a momentous ruling, ordering Apple to dismantle its long-standing 'walled garden' approach for iPhone users in Australia. This decision mandates that Apple must permit the operation of alternative app stores and third-party payment systems on its iOS devices, a significant win for Epic Games and a potential game-changer for digital distribution.
Justice Jonathan Beach, who presided over the case, delivered the remedies judgment, following an August 2025 finding that Apple had misused its market power under section 46 of Australia's Competition and Consumer Act 2010. The comprehensive 235-page decision comes after years of legal contention between Epic Games, the developer of the popular title Fortnite, and tech giant Apple. Indian IT Firms See Headcount Drop by Over 24,000 in Past Year
A Victory for Developers and Consumers
The court's order means that iPhone users with Australian Apple Accounts will soon be able to download applications from sources other than the official App Store, including directly from developer websites. Developers will also gain the freedom to offer alternative payment options, bypassing Apple's in-app purchase system and its associated fees. This move is expected to foster greater competition and innovation within the iOS ecosystem.
Epic Games' CEO, Tim Sweeney, hailed the decision as a "huge victory for consumers and developers," confirming that Fortnite is set to return to the App Store in Australia as early as tomorrow, October 23, 2026. This precedes the broader changes, which are slated to come into effect on March 1, 2027. Apple has the option to apply for an extension until May 3, 2027, between February 1 and February 15, 2027, subject to court approval.
Key Directives from the Court
The Federal Court's orders include several critical provisions:
- Alternative App Distribution: Apple must allow alternative iOS app distribution channels, including third-party app stores and direct downloads from developers' websites, for users with Australian Apple Accounts.
- Third-Party Payment Systems: Developers must be permitted to offer payment methods other than Apple's in-app purchasing system and direct users to external payment options.
- Fee Restrictions: Apple cannot impose additional fees on purchases made through third-party app stores. However, the court affirmed Apple's right to seek a commercial return on its intellectual property.
- Fortnite Reinstatement: Apple is ordered to take steps to allow Epic's Fortnite and other eligible apps back onto the Australian App Store.
- Legal Costs: Apple has been directed to pay 85% of Epic Games' legal costs incurred during the liability trial. WhatsApp Accidentally Exposes Hidden AI System Prompts on Help Website,
While this ruling significantly opens up the iOS ecosystem, Justice Beach clarified that Apple may still maintain security scanning and notarisation requirements for apps distributed outside the App Store. The company is also not obligated to distribute competing app marketplaces through its own App Store.
Apple's Stance and Global Context
Apple has expressed disagreement with many of the court's findings and has confirmed its intention to appeal the decision. A spokesperson stated that Apple would "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." Apple iPhone Duo Foldable Phone To Go on Sale Globally on October 23.
This Australian judgment adds to a growing global trend of regulatory pressure on large tech companies. It follows a late 2021 US ruling that required Apple to allow developers to link to alternative in-app payment methods, and the Digital Markets Act in the European Union, which mandated the opening of iOS to alternative app stores, effective from March 7, 2024.
Disclaimer: AI tools assisted in compiling the foundational data and research for this report. The final content was reviewed, edited and verified by human editors at LatestLY.
(The above story first appeared on LatestLY on Oct 22, 2026 09:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
