Australia’s Federal Court has ordered Apple to open iPhones to rival app stores, direct downloads and alternative payment services for Australian users from March 1, 2027. The landmark order, handed down on October 22, 2026, is one of the toughest rulings Apple has faced over its control of the iPhone ecosystem.
The orders apply to anyone whose Apple Account region is set to Australia. From the effective date, iPhone users there will be able to find, download, install and update apps through competing marketplaces and developer websites, and pay for digital content outside Apple’s own payment system. Apple has confirmed it plans to appeal.
What the court actually ordered
The ruling is the remedies stage of Epic Games’ long-running case against Apple. In August 2025, Justice Jonathan Beach found that Apple had misused its market power by restricting app distribution and payments, in breach of Australia’s Competition and Consumer Act 2010. The new orders spell out exactly what Apple must change.
On distribution, Apple must let users access competing app stores and websites without charging for that access or putting obstacles in the way. Developers must get the tools they need on substantially the same terms they get for App Store distribution, and Apple cannot punish them for choosing a rival store or payment provider.
On payments, the changes go deep. Developers will be able to offer alternative payment services and link out to other ways to pay, even inside App Store apps. Apple cannot force them to also offer its own in-app purchasing system, cannot demand reports or audits of those transactions, and cannot stop them from offering lower prices through competing payment services.
Apple’s fees are capped too
The court also put strict limits on what Apple can charge:
- Outside the App Store: Apple cannot charge anything on purchases made through alternative payment services or websites in apps distributed outside its store.
- Inside the App Store: fees are capped at the equivalent of what Apple charges on payments for physical goods or services, plus any genuine, reasonable extra costs Apple incurs for digital purchases.
- No bundling: Apple cannot make alternative distribution conditional on developers also offering, through Apple’s payment system, content that was bought elsewhere.
Apple must provide the necessary tools for alternative distribution without making the process deliberately harder than installing apps through its own store. It does not have to carry rival marketplaces inside its App Store, but it cannot stop them being preinstalled on iPhones either.
Security checks stay, but with limits
Apps from outside the App Store will still need to pass an automated security and privacy scan, and be notarised by Apple or a qualified third party. Apple can remove them only for harmful content, genuine security risks or legal requirements. The message from the court is clear: security is legitimate, but it cannot be used as a wall to protect the App Store business.
Apple says it will appeal
Apple told Reuters it intends to challenge the decision and request a suspension of enforcement, pointing to intellectual property rights and security concerns around the App Store. It may also ask the court to push the deadline to May 3, 2027, by applying with supporting evidence between February 1 and February 15, 2027.
The ruling arguably goes further than the terms Apple set for itself in the European Union, where the Digital Markets Act forced similar changes through iOS 17.4 in 2024. Commentators have noted that Australia’s fee limits in particular are stricter than what Apple currently offers in Europe.
Fortnite’s return and what it means
Epic Games, which brought the case after its 2020 clash with Apple over Fortnite, celebrated the ruling. The company has said Fortnite will return to the App Store in Australia. The dispute began when Apple removed Fortnite and terminated Epic’s developer account after Epic introduced its own direct payment option, a move Justice Beach described as a textbook example of Apple enforcing its restrictive terms.
For Indian iPhone users, nothing changes for now. The orders apply only to Apple Accounts with Australia set as their region, though developers anywhere in Apple’s Developer Program can use the new routes to reach Australian users. Still, regulators around the world are watching. Each ruling chips away at the app store model that has underpinned Apple’s services revenue for over a decade.
FAQs
When do the changes take effect?
March 1, 2027, at noon Melbourne time, unless Apple secures a court-approved extension or a suspension on appeal.
Who gets access to rival app stores?
iPhone users whose Apple Account region is Australia. Developers enrolled in the Apple Developer Program can participate from anywhere in the world.
Will sideloaded apps skip security checks?
No. Apps distributed outside the App Store must still pass automated security and privacy checks and be notarised by Apple or a qualified third party.
Can developers really charge less outside Apple’s payments?
Yes. The court barred Apple from preventing developers from offering lower prices through competing payment services.
Is the ruling final?
Not yet. Apple has said it will appeal and may seek a suspension of enforcement and an extension of the deadline to May 3, 2027.
The next few months will decide whether Australia becomes the strictest app-store regime in the world, or whether Apple’s appeal resets the clock. Either way, the fight over who controls the iPhone is far from over.
