Australian ruling requires Apple to open app stores and alternative payments, pay 85% of costs
Key Facts
On October 22, 2026, the Federal Court of Australia ordered Apple to open iOS to competing app distribution channels and payment methods, reshaping App Store rules in Australia. The ruling allows device users to discover, obtain and update apps through other channels, including direct downloads and alternative app stores. The orders apply to users with an Australian Apple account, while participating developers may be in Australia or anywhere else in the world. The court also ordered Apple to pay 85% of Epic's costs related to the case through the liability trial, reserving its decision on the costs of the remedies hearing. The ruling follows the court's 2025 liability judgment that Apple misused its market power by restricting app distribution and payment options.
The remedies allow developers to use payment methods other than Apple's system within apps, as well as buttons or external links directing users to those methods. Apple may not require a developer to offer its payment system alongside the payment method the developer prefers. The orders also bar Apple from requiring reports on transactions processed outside its system or reserving the right to audit them. The ruling prohibits imposing additional obstacles on alternative payments compared with the steps users face when buying physical goods and services within apps. The changes therefore extend to how purchases are completed, not only to app distribution.
The court retained security controls for apps downloaded outside Apple's App Store, requiring them to undergo automated screening for security or privacy reasons and to be notarized by Apple or a qualified third party. Apple may impose additional security requirements on alternative payment methods, provided they are necessary and proportionate to the risks. The ruling requires Apple to give affected developers advance written notice, explaining the nature and reasons for the risk. This condition limits Apple's ability to use security concerns to impose general requirements on competitors, while keeping screening and notarization within the app installation process. The Australian Competition and Consumer Commission said the remedies could have broad effects on the distribution of mobile apps and payments within them, after the court allowed it to intervene in the remedies proceedings and make submissions on the public interest.
The ruling also opens the door to Epic apps returning to Apple's Australian App Store: Apple must take the steps necessary to accept Fortnite or other Epic apps, or restore them to the store upon written request, provided the developer terms comply with the court's orders. Epic said Fortnite would return to the Australian store on Thursday following the ruling. Apple and Google removed the game from their stores in August 2020 after Epic introduced its own payment system to bypass commissions on app purchases. The Australian competition regulator described those commissions as close to 30%. The dispute places the game's return in the broader context of a debate over purchase fees and developers' right to direct users to other payment methods.
Apple told Reuters it plans to appeal the ruling and seek a stay, citing intellectual property rights and App Store security. The main orders take effect at noon Melbourne time on March 1, 2027. Apple may file an application supported by evidence between February 1 and February 15, 2027, to extend the start of enforcement to May 3, 2027, but that requires court approval. In trading on October 23, 2026, Apple shares closed at $347.73, compared with a close of $348.22 the previous day. Those two closes alone do not establish a link between the share move and the ruling, while the outcome of the stay request or judicial extension remains a factor in the timing of the orders.