Apple has been ordered by an Australian federal court to open the iPhone to third-party app stores, direct app downloads and alternative payment systems, in a major ruling that challenges the company’s control over its iOS ecosystem.
The ruling, handed down on October 22, 2026, requires Apple to allow alternative app distribution and payment options for users with Australian Apple Accounts. Most of the changes must take effect by March 1, 2027, although Apple may seek a delay through the court.
The decision follows a long-running legal battle involving Epic Games, the developer of Fortnite. The dispute began after Apple removed Fortnite from its App Store in 2020 when Epic introduced a payment method that bypassed Apple’s in-app purchasing system.
Under the new orders, Apple must allow eligible developers to distribute apps through competing app marketplaces and websites. Developers will also be able to offer alternative payment methods for in-app purchases and direct customers to external payment options. The court has restricted Apple’s ability to impose fees or conditions that would make these alternatives less competitive.
The changes could give developers greater control over how they distribute their apps and receive payments, potentially allowing them to reduce platform fees or offer customers different pricing options. However, the ruling does not guarantee that every developer will launch an alternative store or that all apps and purchases will become cheaper.
Fortnite’s return is another immediate consequence of the decision. The court ordered Apple to take the necessary steps to readmit Fortnite and other eligible Epic Games applications to the Australian App Store following a written request from Epic, subject to applicable requirements. Epic announced that Fortnite would return to the store in Australia on October 22.
Apple has strongly disagreed with aspects of the ruling and told Reuters that it intends to seek a stay and appeal the decision. The company argues that its App Store policies help protect users and developers, and says it wants to preserve the security and privacy of the iPhone experience.
The court has not eliminated Apple’s ability to protect its platform. Apple can still apply appropriate security checks to apps distributed outside its official store, provided those measures are proportionate and do not unfairly obstruct competing distribution channels. The ruling also applies to Australian Apple Accounts rather than forcing Apple to make the same changes worldwide.
The decision adds Australia to a growing list of markets challenging Apple’s tightly controlled app distribution model. The European Union has already forced changes through its Digital Markets Act, while Japan and Brazil have introduced measures affecting third-party app distribution and payment options.
For iPhone users in Australia, the changes could eventually mean more choices about where they download apps and how they pay for digital services. Developers may also gain new ways to reach customers without relying entirely on Apple’s marketplace. However, Apple’s planned appeal could affect the timeline or implementation of the court’s orders.
The broader battle over app store competition is far from over, but the Australian ruling represents a significant development in efforts to give developers and consumers more freedom within Apple’s mobile ecosystem.
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