An Australian federal judge has ordered Apple to overhaul how it runs the App Store in Australia, concluding a lengthy antitrust dispute brought by Epic Games. Apple has said it intends to appeal.
In a 235-page decision, Justice Jonathan Beach ruled that iPhone users with Australian Apple Accounts must be able to install apps from third-party app stores and websites from March 1, 2027. Apple has until February 15 to ask for an extension to May 3, 2027, which would need court approval.
The orders follow a ruling last year in which the court found Apple had breached Australian competition law by limiting alternative app distribution and payment methods. Justice Beach said Apple held "a substantial degree of power in the iOS app distribution services market and the iOS in-app payment solutions market" and used its developer agreements and App Store guidelines to restrict competition.
The practices he singled out included blocking app downloads and installations from outside the App Store, preventing developers from using other distribution channels, and requiring them to use Apple's in-app payment system. He also pointed to bans on links to alternative payment methods, rules obliging developers to offer content bought elsewhere through Apple's in-app purchases as well, and limits on developers handling refunds themselves.
The judge also cited Apple's treatment of Epic in 2020, including its refusal to allow Epic Direct Pay, the removal of Fortnite from the App Store and the termination of Epic's developer account. He described the latter two actions as "a paradigm example of Apple's enforcement of its restrictive terms" in breach of section 46 of the Competition and Consumer Act 2010, which bars companies with substantial market power from conduct that substantially lessens competition.
The orders require Apple to permit alternative app stores and sideloading, let developers use other payment systems and link to them from within apps, and provide the APIs and tools for alternative distribution on substantially the same terms offered to App Store developers. Apple is also barred from charging fees for access to alternative distribution channels, must limit certain fees on external payments, and must let developers offer lower prices outside its payment system. Fortnite and other eligible Epic apps must be readmitted to the Australian App Store, and that order takes effect immediately once Epic applies in writing rather than waiting for the 2027 date.
The court also barred Apple from requiring developers to report transactions handled by alternative payment providers, or to offer Apple's payment system alongside their preferred options. Apple imposes both requirements in other regions, including Brazil and Japan. The decision additionally covers restrictions on Apple's ability to disable apps installed outside the App Store, as well as notarization requirements.
Apple secured some points. Justice Beach rejected Epic's request to extend the injunctions worldwide and allowed Apple to keep security scanning and notarization requirements for apps distributed outside the App Store. Apple must allow competing marketplaces on iOS but does not have to distribute them through its own App Store, a distinction set out in last year's ruling. The court also ordered Apple to pay 85% of Epic's legal costs through the original trial, with costs for the later remedies hearings still to be decided.
Epic said "Fortnite is coming back to the App Store in Australia tomorrow," calling the outcome "great news for developers worldwide and iOS users in Australia who will benefit from an open mobile app ecosystem." In a statement to Reuters, Apple said: "We will request a stay and appeal the outcome to seek a resolution that respects our intellectual property and protects the safe, secure experience that consumers and developers expect from the App Store."
