Australian court orders Apple to open iOS to third-party app stores in Epic case
In short
Australia's Federal Court ruled in Epic Games' antitrust case that Apple must allow third-party app stores and outside payment options on iOS from 1 March 2027. Apple said it will seek a stay of the ruling and appeal. The court also ordered Apple to bear about 85% of Epic's legal costs, according to IT Home and cnBeta.
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Australia's Federal Court has ruled that Apple must open its iOS system to third-party app stores and outside payment options, after an antitrust case brought by Epic Games, IT Home and cnBeta reported on 22 October. Apple said it will seek a stay of the ruling and appeal, according to CLS. IT Home quoted a statement Apple gave Reuters. [ 1 , 2 , 3 ]
According to IT Home, the judge issued a 235-page judgment on the day. From 1 March 2027, Apple must allow iPhone users with Australian Apple accounts to install apps from third-party app stores and websites. Apple can apply by 15 February for an extension to 3 May 2027, which needs court approval. cnBeta cites a court document of 1,104 paragraphs and says Apple must complete all required changes by 1 March 2027. If it expects to miss that date, it must file evidence and its reasons by 15 February 2027. [ 2 , 3 ]
cnBeta lists further remedies. Apple must let Epic resubmit Fortnite and other apps that meet its current review rules. Third-party app stores must be allowed to operate on iOS, and Apple may not block them or charge extra fees for access. Apple may not use development tools, interfaces or APIs to make third-party distribution costlier or more complex. The court also required Apple to drop its anti-steering limits, so developers can recommend other payment methods and are not forced to use Apple's in-app purchase system. Apple may still set security requirements for sideloaded apps or third-party stores, but they must match clearly defined security risks. [ 3 ]
IT Home said Judge Jonathan Beach found that Apple holds a "strong market dominance" in iOS app distribution and in-app payment markets. He found that Apple used its developer agreements and App Store guidelines to restrict competition. The judgment cited Apple's 2020 actions against Epic: refusing Epic's direct payment option, removing Fortnite and later banning Epic's developer account. Beach called the removal and the ban "typical cases" of breaching section 46 of the Competition and Consumer Act 2010. IT Home said the order follows last year's ruling that Apple's limits on distribution channels and payment methods broke Australian competition law. [ 2 ]
IT Home said the ruling also bars Apple from requiring developers to report transactions made through third-party payment channels. It also bars Apple from forcing developers to offer Apple payment alongside their own choice. According to IT Home, Apple won on a few points. The judge rejected Epic's request for a global injunction and allowed Apple to keep security scanning and notarisation for apps distributed outside the App Store. Apple must pay 85% of Epic's costs at the original trial stage, while costs for later relief proceedings are left for a later decision. cnBeta gives the cost share as about 85%. [ 2 , 3 ]
Epic said "Fortnite will return to the Australian App Store tomorrow" and called the result a major gain for developers worldwide and for Australian iOS users. In its statement to Reuters, Apple said it would seek a stay and appeal, and that it hoped for a ruling that respects intellectual property and protects the safe and reliable App Store experience that consumers and developers expect. cnBeta said the industry widely expects Apple to appeal. It also said the ruling broadly matches the direction set earlier by the EU but is more explicit in its terms. [ 2 , 3 ]
Why it matters
The ruling would change how apps are distributed and paid for on iPhones in Australia. cnBeta says other jurisdictions, including the EU, are also pushing Apple to open its App Store, and expects further legal steps to follow.
Key facts
- Australia's Federal Court ruled that Apple must open iOS to third-party app stores and outside payment options. [ 1 , 2 , 3 ]
- From 1 March 2027 Apple must let iPhone users with Australian Apple accounts install apps from third-party app stores and websites, IT Home reported. [ 2 ]
- Apple can apply by 15 February for an extension; IT Home says the extension would run to 3 May 2027 and needs court approval. [ 2 , 3 ]
- Apple said it will seek a stay of the ruling and appeal. [ 1 , 2 ]
- The court ordered Apple to bear 85% of Epic's litigation costs at the original trial stage, according to IT Home. cnBeta gives about 85% of legal costs. [ 2 , 3 ]
- Judge Jonathan Beach rejected Epic's request to apply the injunction worldwide, IT Home reported. [ 2 ]
Confirmed by several sources
- Apple said it will seek a stay of the Australian Federal Court ruling and appeal. [ 1 , 2 ]
- The court requires Apple to allow third-party app stores on iOS. [ 2 , 3 ]
- The compliance deadline is 1 March 2027, with a possible request for more time to be made by 15 February. [ 2 , 3 ]
- Apple must pay about 85% of Epic's legal costs in the case. [ 2 , 3 ]
Still unclear
- When Fortnite will return to the Australian App Store. Epic said Fortnite would return to the Australian App Store the next day (IT Home), while cnBeta says only that Apple must allow Epic to resubmit its apps, with the process expected to start soon.
- Whether the court will grant a stay or the extension to 3 May 2027. Both require court approval, and the documents do not say how the court will decide.
- The outcome of Apple's appeal. cnBeta says the industry widely expects Apple to appeal and to seek to adjust or delay some requirements, but no document reports an outcome.