Apple Ordered to Open iPhone to Rival App Stores in Australia

Australia's Federal Court today ordered Apple to allow competing app stores, direct app downloads, and alternative payment services for Australian users from March 1, 2027.

The orders follow the court's August 2025 finding that Apple misused its market power by restricting app distribution and payment options. They cover users whose Apple Account region is Australia, with Apple Developer Program members worldwide able to participate.

Apple must let users find, download, install, and update apps through competing marketplaces and websites without charging for access or obstructing their use. Developers must receive the necessary tools on substantially the same terms as for App Store distribution, and Apple cannot penalize them for using competing stores or payment services.

Developers will also be able to offer alternative payments and link to other ways to pay, including within ‌App Store‌ apps. Apple cannot require them to offer its own purchasing system alongside alternatives, report those transactions, or allow Apple to audit them. Developers can offer lower prices through competing payment services without Apple preventing them.

The ruling also limits Apple's ability to collect fees on those purchases. It cannot charge for purchases through alternative payment services or websites in apps distributed outside the ‌App Store‌. For ‌App Store‌ apps, fees are capped at the equivalent charge for payments for physical goods or services, plus any genuine, reasonable additional costs Apple incurs for digital purchases.

Apple also cannot make alternative distribution conditional on developers offering content purchased elsewhere through its own payment system.

Security checks will remain. Apps downloaded outside the ‌App Store‌ must undergo an automated security or privacy scan and be notarized by Apple or a qualified third party. However, Apple cannot impose disproportionate installation barriers or otherwise obstruct alternative distribution. Additional security requirements for competing payments must be necessary and proportionate, with developers given an explanation in advance.

Apple can remove or disable externally installed apps only in specified cases involving harmful content, genuine security risks, or legal requirements. It cannot ban third-party apps or alternative app stores from being preinstalled on iPhones, but does not have to distribute competing stores through the ‌App Store‌.

Apple told Reuters that it plans to appeal the ruling and ask the court to pause its enforcement, citing its intellectual property rights and ‌App Store‌ security.

The changes take effect at noon Melbourne time on March 1, 2027. Apple can apply between February 1 and February 15, with supporting evidence, for a court-approved extension until May 3.

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