Full Breakdown
Australian Court Orders Apple to Open iOS to Rival Stores and Alternative Payments
By Drooid · · How we work
Federal Court Order Details
A Federal Court of Australia judgment issued on 22 October 2026 requires Apple to permit iPhone users with Australian Apple Accounts to download apps from third-party marketplaces and directly from developers beginning 1 March 2027. The order also obliges Apple to allow developers to offer payment methods other than Apple’s in-app purchase system, to stop blocking links to external payment options, and to remove fees that would hinder alternative distribution channels. Apple must reinstate Epic Games’ Fortnite on the Australian App Store, with the broader Epic Games Store to follow later. Apple has until 15 February to seek a court-approved extension that could push the compliance deadline to 3 May 2027.
Background of the Epic-Apple Dispute
Apple removed Fortnite from its App Store on 13 August 2020 after Epic introduced its “Direct Pay” system. The dispute led to a 2025 Federal Court finding that Apple misused its market power in iOS app distribution and in-app payments. The Australian case mirrors a parallel U.S. lawsuit and follows a 2024 European Commission fine of €500 million for similar practices.
Timeline of Key Developments
- 13 August 2020 – Apple blocks Fortnite.
- August 2025 – Judge Jonathan Beach finds Apple breached competition law.
- 22 October 2026 – Court orders Apple to open iOS to rival stores, allow alternative payments, and reinstate Fortnite.
- 22 October 2026 – Apple says it will request a stay and appeal.
- 15 February 2027 – Deadline for Apple to file an extension request.
- 1 March 2027 – Start of open-store and sideloading provisions.
- 3 May 2027 – Latest possible compliance date if an extension is granted.
Data & Statistics
- Apple’s App Store generated an estimated US$27.4 billion worldwide in 2024, about 7 % of Apple’s total revenue of US$391 billion.
- Apple’s Services division recorded US$109.2 billion in 2025, representing 26.2 % of total revenue.
- Epic estimates Fortnite could have earned about US$1 billion during its four-year absence from iOS, after generating US$300 million in the two years before removal.
- The court ordered Apple to cover 85 % of Epic’s legal costs incurred up to the liability hearing; the exact dollar amount is undisclosed.
Official Statements & Responses
Apple’s spokesperson emphasized that the company will continue to enforce security scanning and notarization requirements for apps distributed outside the App Store.
Why It Matters
The order promises Australian consumers more choice of app sources and potentially lower prices through competition among payment providers. Developers can distribute apps directly, avoid mandatory Apple-only payment processing, and offer lower-priced alternatives. The ruling aligns Australia with actions in the United States, Japan and the European Union, indicating a shift toward limiting platform-owner control over mobile ecosystems.
Conflicting Reports & Gaps
The timeline for the Epic Games Store’s re-entry onto iOS in Australia is not specified, and the total monetary amount of Apple’s mandated contribution to Epic’s legal costs remains undisclosed.
What’s Next
Apple plans to file a stay request and an appeal, possibly seeking an extension to 3 May 2027. The court will consider any extension application submitted between 1 February and 15 February. Enforcement of the open-store and sideloading rules will commence at noon Melbourne time on 1 March 2027, unless a stay or extension alters that schedule. Ongoing monitoring will assess how the new payment-method rules affect pricing and developer revenue in the Australian market.