Following a Federal Court of Australia decision, Apple must permit iPhone users in the country to download applications from competing stores and directly from developers' websites beginning 1 March 2027. The ruling also prohibits Apple from charging fees associated with these alternative distribution methods. Apple has indicated it intends to request a stay and pursue an appeal.
Epic Games announced on Friday that Fortnite has returned to the App Store in Australia, one day after the court's order mandating Apple restore the game. Justice Jonathan Beach's ruling stems from his August 2025 finding that Apple engaged in misuse of its market dominance regarding app distribution and in-app payment systems, determining that Apple violated Australian competition law dating back to November 2017.
https://x.com/Fortnite/status/2113473500128374795?ref_src=twsrc%5Etfw
Apple purposefully foreclosed every rival channel for iOS app distribution and installed itself as the sole gateway to iOS users
Justice Jonathan Beach
Required changes for Apple
Under the court order, Apple must permit rival app stores and direct downloads provided each application undergoes an automated security and privacy evaluation. Apple or another qualified entity must also notarise the application. Developers utilising these alternative channels receive equivalent tools and APIs compared to those available through the App Store.
The ruling explicitly forbids Apple from imposing fees or establishing conditions tied to these alternative distribution channels. Beach referenced Apple's Core Technology Fee implemented in the European Union, which charges 50 euro cents per first annual installation, concluding this structure was intended to discourage developers from pursuing alternatives.
Developers gain the ability to implement their own payment systems and direct users to their websites. Apple cannot require developers to also provide its in-app purchase mechanism or demand sales reports from alternative payment systems. For digital content sold through non-Apple payment systems within App Store applications, Apple's fee faces a ceiling—it cannot surpass what Apple charges for physical goods, which the judge noted is currently zero, plus legitimate additional expenses.
Installation friction and developer protection
Apple is prohibited from implementing additional payment warnings or installation steps beyond what security considerations genuinely require. The company also cannot retaliate against developers who opt for rival stores or alternative payment methods.
Beach drew on Epic's European data demonstrating that when Apple reduced installation steps for the Epic Games Store, user abandonment rates dropped significantly from 63% to 24% on iOS 18.6. A comparable conclusion regarding installation friction emerged from a US judge evaluating Google's Play Store.
In response to regulatory or judicial constraints imposed in connection with the App Store that are anything other than detailed, prescriptive and precise, Apple has systematically implemented practices that seek to circumvent the practical effects of those constraints
Justice Jonathan Beach
Scope and duration of the orders
The court orders apply exclusively to the Australian App Store and Apple accounts configured for Australia, though developers worldwide may utilise them. Beach declined Epic's request for worldwide orders, citing potential conflicts with existing regulations in the European Union, Japan and the United States.
While Apple sought a five-year duration for the orders, Beach imposed no expiration date. However, Apple retains the ability to petition for modifications should market conditions change. Additionally, Apple may apply in early February for a two-month extension, delaying implementation until 3 May 2027.
The Fortnite restoration order took immediate effect rather than waiting until March. As part of the ruling, Apple must cover 85% of Epic's legal expenses from the 2025 trial.
Epic did not secure all requested remedies. Beach declined to void Apple's contract terms and permitted Apple to continue preventing rival stores from operating within the App Store itself. The judge also recognised that certain security-related warnings before app installation serve legitimate purposes.
Apple's response and Epic's plans
An Apple representative informed TechRadar that the company maintains it holds no monopoly in Australia or elsewhere, and will pursue a stay and appeal of the decision.
We respectfully disagree with many findings in this case, including a market definition that has been rejected by other courts
Apple spokesperson
https://x.com/TimSweeneyEpic/status/2113059415788315072?ref_src=twsrc%5Etfw
Tim Sweeney, Epic's chief executive, expressed support for the remedies on X, noting that Fortnite would return alongside the Epic Games Store. Epic confirmed the return one day later and outlined its next steps, planning to launch the Epic Games Store on Australian iPhones once Apple's obligation to permit competing stores takes effect in March.
https://x.com/EpicNewsroom/status/2113475030092812773?ref_src=twsrc%5Etfw
Australia had remained the sole country excluded when Fortnite returned to the App Store in May. At that time, Epic explained the situation in a statement.
Epic can't return under an illegal payment arrangement with Apple
Epic Games
Source: The Next Web
