Australian court orders Apple to open iPhone to rival app stores by March 2027

Australian Federal Court Justice Jonathan Beach ruled on October 21, 2026, that Apple breached the country’s competition law and must open the iPhone to rival app stores, sideloading, and alternative payment systems by March 1, 2027. The 235-page decision caps Epic Games’ long-running antitrust case against Apple in Australia, a parallel track to its better-known U.S. litigation.

The ruling follows a 2025 finding that Apple restricted alternative app distribution and payment methods on iOS. Justice Beach found Apple holds substantial market power in both iOS app distribution and in-app payments, and that it used that power to block competitors. He singled out Apple’s 2020 removal of Fortnite and termination of Epic’s developer account as “a paradigm example” of anticompetitive conduct under section 46 of Australia’s Competition and Consumer Act 2010.

What Apple must change

Under the order, Apple must allow Australian iPhone users to install apps from third-party stores and websites, permit alternative in-app payment methods, let developers link to outside payment options, and provide third-party developers access to distribution tools on terms comparable to those it gives App Store developers. Apple also cannot charge fees specifically for using alternative distribution channels, and it must stop requiring its own payment system to run alongside competitors’ options.

One remedy takes effect immediately rather than waiting for the 2027 deadline: Apple must reinstate Fortnite and other eligible Epic apps to the Australian App Store as soon as Epic submits a written application. Epic said in response that “Fortnite is coming back to the App Store in Australia tomorrow.”

Where Apple won

The ruling wasn’t a total loss for Apple. Justice Beach rejected Epic’s request to extend the injunction worldwide, limiting the order to Australia. Apple also retains the right to run security scanning and notarization on apps distributed outside the App Store, and it is not required to carry rival marketplaces inside its own storefront. Apple must cover 85% of Epic’s legal costs through the original trial, with costs from the later remedies hearing still to be determined.

Apple told Reuters it will “request a stay and appeal the outcome,” arguing the ruling threatens the App Store’s security model and its intellectual property.

Part of a widening pattern

Australia joins Brazil and Japan in forcing Apple to open iOS to alternative app stores, adding to a growing patchwork of regional rules that chip away at the walled-garden model Apple has defended for more than a decade. Unlike the European Union’s Digital Markets Act, which applies a single continent-wide standard, each of these rulings carries its own specific requirements and timeline, meaning Apple now has to manage several different regulatory regimes for the same underlying product. With Epic’s U.S. case still active and more jurisdictions watching how this litigation unfolds, Australia’s ruling adds pressure on Apple to reconsider its approach globally rather than fight each market in isolation.