Apple Must Allow Third-Party App Stores in Australia

In Short

Australia’s Federal Court has ordered Apple to permit third-party app stores, alternative payments and direct app downloads from March 2027.

Apple will have to open up its controlled App Store ecosystem in Australia from March 1 2027.
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Apple will have to open up its controlled App Store ecosystem in Australia from March 1 2027.

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Apple will have to open up its controlled App Store ecosystem in Australia from March 1 2027. This change follows a Federal Court ruling that says Apple must support third‑party app marketplaces, direct app downloads and alternative payment options. I believe Apple users will appreciate choice in apps and payment methods.

The court’s latest orders follow its August 2025 finding that Apple had misused its market power by restricting how consumers could download applications and make payments. The new requirements will apply to users whose Apple Account region is set to Australia. Developers enrolled in the Apple Developer Program anywhere in the world will be able to participate.

Under the ruling, Australians must be able to discover, download, install and update apps through competing app stores and websites. Apple will also be prohibited from charging users simply for accessing these alternatives or introducing unnecessary obstacles that make them difficult to use.

The decision also brings significant changes for developers. Apple must provide the tools needed to distribute apps outside the App Store on substantially the same terms available for App Store distribution. It cannot penalise developers for choosing rival marketplaces or alternative payment providers.

Developers will also be able to offer different payment methods and direct customers to external payment options, including from apps distributed through Apple's App Store. Apple cannot require developers to keep its payment system alongside an alternative or demand that they report or permit audits of transactions completed through competing services.

The ruling further allows developers to offer lower prices when customers use alternative payment services, preventing Apple from blocking such pricing strategies.

The court has also introduced restrictions on the fees Apple can collect. The company cannot charge fees on purchases made through alternative payment services or on websites linked from apps distributed outside the App Store. For apps available through Apple's own marketplace, fees will be limited to the rate Apple charges for payments involving physical goods or services, along with any genuine and reasonable additional costs associated with digital purchases.

Apple will also be barred from requiring developers to use its payment system for content purchased elsewhere as a condition of permitting alternative app distribution.

Security, however, will remain part of the process. Apps that are installed outside of the App Store will need to go through security or privacy checks. They must also get approved by Apple or a trusted third party. Apple cannot create installation problems. Any extra security steps for payment services must be needed and not too strict.

Apple has the ability to remove or turn off apps that're not from its store in certain cases like when there is bad content, a real security danger or if the law says so. Apple does not have to offer other app stores through its own App Store. Also, Apple cannot stop apps or different stores from being already on iPhones.

Apple told Reuters that it plans to appeal the ruling and ask the court to pause enforcement, citing its intellectual property rights and App Store security.

The new rules are scheduled to take effect at noon Melbourne time on March 1, 2027. Apple can apply to the court between February 1 and February 15, supported by evidence, for an extension until May 3, 2027.

Kahekashan is a passionate technophile with a keen eye for cutting-edge gadgets, emerging technologies, and everything in the digital realm. Raised in a Defence family with strong values and a background in literature, she has consistently pursued excellence in every endeavour. Her last full-time assignment involved content writing with the Indian School of Business.

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