Apple Ordered to Allow Alternative App Stores in Australia
Court Ruling and New Rules
The Federal Court of Australia has issued a significant mandate to Apple: starting 1 March 2027, the company must enable iPhone users to install applications via alternative app stores and direct links. This decision follows a verdict from August 2025, which concluded that Apple abused its market power by restricting the distribution of applications and limiting payment method choices.
These new regulations apply to all users with an Apple Account set to the Australia region. Furthermore, Apple Developer Program participants worldwide will be permitted to leverage these conditions to distribute their products within the Australian market. Apple is prohibited from penalising or restricting developers for choosing alternative services.
Payments and Commissions
The changes will significantly impact financial operations. Developers will be allowed to offer users alternative payment systems within their applications and link them to external platforms. Apple will no longer be permitted to mandate the use of its own payment system or audit these transactions. Moreover, the company is barred from charging commissions on purchases made outside the App Store through alternative payment systems.
For applications remaining on the App Store, fees will be capped. Apple will only be allowed to charge amounts established for physical goods or services, plus justified additional costs necessary for digital purchases.
Security Standards
Despite these changes, security controls will remain in place. Applications distributed outside the App Store must undergo automated scanning and receive notarisation from Apple or a third party. However, Apple is prohibited from creating unjustified barriers during the installation process. The company maintains the right to remove an application only if it contains malicious content, poses a genuine security threat, or is prohibited by law.
What Happens Next?
Apple has announced its intention to appeal the court's decision. The company is seeking a stay of execution, arguing that the ruling infringes upon its intellectual property and threatens the security of the App Store. If the court denies Apple's request to delay the implementation, the smartphone experience for Australian users will change radically from March 2027.
Although these regulations apply specifically to Australia, similar precedents in the European Union and other regions highlight a global trend: technology giants are being forced to open their closed ecosystems.