Federal Court orders Apple to allow third-party iPhone apps

The Federal Court of Australia has ordered Apple to permit third-party app stores and sideloading on the iPhone, with the changes to take effect on March 1, 2027. The court gave Apple an option to seek an extension to May 3, 2027, but said any extension would need court approval. The order follows an Australian legal victory for Epic Games last year and is explicitly tied to that earlier ruling.

The judgment requires Apple to allow users with Australian accounts to install apps from third-party stores and websites, to open necessary application programming interfaces for third-party storefronts, and to allow alternative payment options, including external payment links. Apple must also limit the fees it charges on alternative distribution and payment methods and remove other technical and commercial barriers that prevent rival stores from operating.

How the case reached this point

The dispute began when Epic Games sought to use an alternative payment system for Fortnite on Apple devices, a fight that later prompted separate litigation in the United States. In late 2021, a US judge ruled that Apple should allow alternative in-app payment methods. In Australia, Epic had an earlier win last year when a court found that both Apple and Google breached local competition laws.

That finding set the stage for the Federal Court order now. Both Apple and Google previously removed Fortnite from their app stores after Epic adopted a payment mechanism tied to V-Bucks, the game’s virtual currency. Fortnite has since returned to app stores in several regions but remained absent from the Australian stores pending the local legal dispute.

The Australian ruling aligns the country with jurisdictions that already permit alternative app distribution models. The European Union, Brazil and Japan have rules allowing third-party app stores or sideloading in varying forms. Epic has voiced dissatisfaction with how those rules were implemented in the EU, so legal contention remains in other markets. In the United States, alternative app stores are not yet permitted on iPhone, though developers there can show external payment links and offer alternative payment options after recent regulatory and legal changes.

Apple responded to the Federal Court decision by saying it plans to appeal, according to a statement the company gave to Reuters.