Federal Court orders Apple to open iPhone to rival app stores
Apple has violated Australian competition law and must allow third-party app stores and payments by March 2027.
Australia's Federal Court has ordered Apple to allow rival app stores and alternative payment systems on iPhones. Justice Jonathan Beach ruled that Apple violated competition law by banning competing app stores and forcing apps to use Apple's payment platform, where the company takes 15-30% in fees.
The ruling concludes a six-year battle between Apple and game developer Epic Games, played out in courts across Australia, Europe, the UK, and the US. Epic Games and a parallel class action alleged Apple was running an illegal monopoly through its intricate web of terms and technical measures.
Apple has until March 2027 to make the changes and must pay 85% of Epic Games' legal costs. About 15 million Australian iPhone users will gain the ability to download from the open web and rival app stores.
Fortnite, the game that sparked the dispute, returns to Apple's Australian app store today after a six-year absence.
- 15 million
- Australian iPhone users
- 15-30 percent
- Apple's fee range
- 85 percent of Epic Games'
- Legal costs Apple pays
- March 2027
- Deadline for changes
Why it mattersThis gives Australian iPhone users more choice and the ability to avoid Apple's fee structure, likely lowering app prices.
AustraliaAustralians can now access apps outside Apple's walled garden and use alternative payment systems, potentially cutting app prices.
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