Australian Court Rules Against Apple’s App Store Monopoly

Apple has been ordered by Australia’s Federal Court to allow competing app stores, direct app downloads, and alternative payment services for Australian users. This decision comes after a previous ruling in August 2025 that Apple misused its market power by restricting app distribution and payment options in Australia. The new orders will go into effect on March 1, 2027, with the possibility of an extension until May 3 if Apple applies between February 1 and February 15.

The court found that both Apple and Google violated Australian law by misusing their market power in operating their respective app stores. Apple was specifically criticized for preventing users from directly downloading or sideloading apps and limiting developers from offering alternative payment methods. Google also faced scrutiny for its Google Play billing system, although it settled its case with Epic earlier in the year.

Under the new rules, Apple must allow users to discover, install, and update apps from third-party app store marketplaces and websites without charging or blocking access. Developers can now offer alternative payment methods and external links in their apps, both in third-party marketplaces and the official App Store. Apple is prohibited from penalizing developers for using competing marketplaces or payment methods.

Commissions on purchases made through alternative payment services or websites within apps will be limited, with fees capped at a reasonable rate. Apple cannot require developers to use its own payment system or make alternative distribution conditional on doing so. Security checks for apps installed from outside the App Store will remain in place.

Despite the court’s decision, Apple plans to appeal, citing concerns about intellectual property and the security of the App Store. In the meantime, Epic Games has announced that Fortnite will return to the Australian App Store following the court order. The game had been unavailable in Australia due to disputes over Apple’s payment terms.

Overall, the ruling represents a significant shift in the app store landscape in Australia, opening up opportunities for developers and users alike. The full implications of the decision remain to be seen, but it marks a victory for competition and consumer choice in the digital marketplace.