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Australia · Courts

Australian Court Opens iOS to Rival Stores and Payments

Australia’s Federal Court has ordered Apple to permit alternative iOS app distribution and payment methods after its competition-law liability ruling.

Australia’s Federal Court has ordered Apple to permit alternative iOS app distribution and payment methods, setting a March 2027 start for structural relief that reaches well beyond the dispute over Fortnite.

Justice Beach’s final relief in Epic Games Inc v Apple Inc (No 2) follows the court’s 2025 finding that Apple Inc contravened section 46 of the Competition and Consumer Act. The court declared that Apple held substantial power in the Australian markets for iOS app distribution services and iOS in-app payment solutions, and that restrictions enforced through its developer agreements substantially lessened competition.

The orders require Apple, if Epic applies, to process the return of Fortnite and other Epic-developed apps to the App Store on the same basis as other compliant apps. More broadly, Apple must enable Australian users to discover, download and update apps through direct downloads and alternative app stores, subject to an automated security or privacy scan and notarisation by Apple or a qualified third party.

Apple is also restrained from using fees or conditions to hinder those channels. The court prohibited requirements that developers make the same content available through Apple’s in-app purchase system, appoint a particular marketing agent or refrain from charging lower prices outside the App Store. Apple may remove or disable an externally distributed app for illicit or harmful content, genuine malware or legal obligations under Australia’s online-safety regime, but not merely because it bypasses the App Store.

On payments, the orders bar Apple from requiring its in-app purchase system for digital content or preventing developers from steering users to other methods. Alternative payment systems may be subjected to necessary and proportionate security requirements only after developers receive a written explanation of the risk and the proposed response.

Most of those obligations begin at noon in Melbourne on 1 March 2027. Apple may seek a short extension to 3 May 2027 by applying between 1 and 15 February with supporting evidence. The court ordered Apple Inc to pay 85 per cent of Epic’s costs through the liability trial; costs of the relief hearing remain reserved.

In a companion class-action ruling, Anthony v Apple Inc (No 2), the court answered common questions and made them binding on group members who had not opted out. It confirmed, among other matters, the existence of the two Australian iOS markets and Apple Inc’s substantial power in each. Costs in that proceeding were reserved. The relief judgment is final at first instance, subject to any appeal or later variation of the injunctions.

The Federal Court’s Epic relief judgment and companion class-action judgment are available in full.

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