Australian Court Orders Apple to Allow Alternative App Stores Following Epic Games Case

An Australian federal judge has ordered Apple to implement significant changes to its App Store policies following a prolonged antitrust dispute with Epic Games. Apple has announced its intention to appeal the ruling.

According to the judge’s decision, Apple must allow iPhone users with Australian Apple Accounts to install apps from third-party app stores and websites starting March 1, 2027. Apple has until February 15 to request an extension until May 3, 2027, pending court approval.

This ruling follows a previous decision that found Apple in violation of Australian competition law by limiting alternative app distribution and payment methods, stemming from Epic Games’ lawsuit, which mirrors its ongoing legal battle with Apple in the United States.

Key Findings of the Ruling

Justice Jonathan Beach stated that Apple possesses considerable power in the iOS app distribution and in-app payment markets. He noted that Apple utilized its developer agreements and App Store guidelines to suppress competition.

Among the practices highlighted by the judge were:

• Blocking app downloads and installations from outside the App Store.
• Preventing developers from using alternative distribution channels.
• Mandating the use of Apple’s in-app payment system.
• Prohibiting links to alternative payment methods.
• Requiring developers to offer content purchased elsewhere through Apple’s in-app purchase system.
• Restricting developers from managing refunds directly.

The ruling also referenced Apple’s actions against Epic Games in 2020, including the removal of Fortnite from the App Store and the termination of Epic’s developer account, which Justice Beach described as a clear example of Apple’s enforcement of its restrictive terms.

As a result of the ruling, Apple is required to:

• Allow alternative app stores and sideloading: Enable Australian iPhone users to download and install apps from third-party websites and marketplaces.
• Allow alternative payment methods: Permit developers to use payment systems other than Apple’s within apps distributed through the App Store.
• Permit external payment links: Allow developers to direct users to alternative payment methods from within their apps.
• Provide access to developer tools: Make APIs and tools for alternative app distribution available on similar terms as those for App Store developers.
• Restrict fees and barriers: Prohibit fees for accessing alternative distribution channels and allow developers to offer lower prices outside Apple’s payment system.
• Readmit Epic Games’ apps: Allow Fortnite and other eligible Epic Games apps back onto the Australian App Store immediately upon receiving a written application from Epic.

The court also addressed several other aspects of Apple’s App Store policies, including restrictions on disabling apps installed outside the App Store and requirements related to notarization.

On the other hand, the judge rejected Epic’s request to extend the court’s injunctions globally and allowed Apple to maintain security scanning and notarization requirements for apps distributed outside the App Store. While Apple must permit competing app marketplaces on iOS, it is not obligated to distribute them through its own App Store.

Additionally, the court ordered Apple to cover 85% of Epic’s legal costs incurred during the original trial, while a decision on costs related to subsequent hearings remains pending.

Epic confirmed that “Fortnite is coming back to the App Store in Australia tomorrow,” celebrating the ruling as beneficial for developers and iOS users in Australia.

In response, Apple stated, “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.”

The full decision can be accessed through the official court link.

Source: 9to5Mac