Apple must open iPhone to alternative app stores in Australia

Key Points:

• An Australian federal judge has ordered Apple to allow iPhone users with Australian Apple Accounts to install apps from third-party stores and websites starting March 1, 2027, following a lawsuit by Epic Games alleging anticompetitive practices.
• The ruling found Apple abused its substantial market power by restricting app distribution and payment methods, including blocking app downloads outside the App Store and requiring use of Apple’s in-app payment system.
• The court mandated Apple to permit alternative payment methods, external payment links, access to developer tools for alternative app distribution, and to readmit Epic’s Fortnite to the Australian App Store immediately.
• Apple was prohibited from requiring developers to report transactions through alternative payment providers or to offer Apple’s payment system alongside preferred alternatives, and must pay 85% of Epic’s legal costs from the original trial.
• Apple plans to appeal the decision, emphasizing the need to protect its intellectual property and maintain a secure App Store experience, while Epic hailed the ruling as a win for developers and iOS users in Australia.