Apple has been ordered to open its "walled garden" to allow third-party app stores and alternative in-app payment systems in Australia, in a landmark court decision which the technology giant says it will appeal.

Apple has until at least March 2027 to allow Australian users to download apps through alternative app stores, including direct web downloads, Federal Court Justice Jonathan Beach ruled on Thursday.

The iPhone maker has globally opposed such changes, commonly known as sideloading, citing concerns over security and use of its intellectual property.

Apps downloaded outside of Apple's App Store must still undergo "an automated scan for genuine security and/or privacy reasons and been notarised by Apple or a suitably qualified third party", Justice Beach said.

Apple also cannot prevent developers from pointing users toward alternative app stores or payment methods, nor charge fees on purchases made in third-party app stores.

The company had contravened the Competition and Consumer Act by using an "intricate web of terms and technical measures" to lessen competition and to "withhold the tools, technologies and supporting IP necessary for sideloading and third-party payment solutions", Justice Beach found.

An Apple spokesperson told Information Age, "We respectfully disagree with many findings in this case, including a market definition that has been rejected by other courts.

"We will request a stay and appeal the outcome to seek a resolution that respects our intellectual property and protects the safe, secure experience that consumers and developers expect from the App Store."

Apple had "purposefully foreclosed every rival channel for iOS app distribution and installed itself as the sole gateway to iOS users", found Justice Beach, who said the company had "unlawfully entrenched and sustained its immensely profitable monopoly over in-app payments for digital content".

"Apple achieved this outcome through the architecture of iOS devices, coupled with its imposition and enforcement of a web of interlocking contractual restrictions and prohibitions," he wrote.

The Apple spokesperson suggested the company "does not have a monopoly position in Australia or in any market around the world".


Apple says it will 'request a stay and appeal the outcome' of the Federal Court case. Image: Shutterstock

Court decision is 'great news', Epic Games says

The case stemmed from a lengthy legal battle brought by entertainment company Epic Games, which scored a partial victory in August 2025 when Justice Beach found Apple and its competitor Google had engaged in anti-competitive conduct through their respective app stores in Australia.

Epic Games described Justice Beach's latest decision against Apple as "great news for developers worldwide and iOS users in Australia who will benefit from an open mobile app ecosystem".

Founder and CEO Tim Sweeney said Epic Games is reviewing the verdict and will "share more soon".

Epic's popular video game Fortnite was removed from Apple and Google's app stores in 2020, after Epic introduced its own payment system to bypass the tech companies' in-app purchase commission fees of approximately 30 per cent.

Fortnite is expected to return to Apple's Australian App Store on Thursday, 23 October.

The game returned to Apple’s US App Store in May 2025, after a judge found the company had violated a court order by not allowing developers to display clear links and buttons to third-party payment options.

Epic's case against Google was dismissed by Justice Beach in March 2026, after the two firms reached a global settlement which reduced standard commission fees to a maximum of 20 per cent and mandated support for some third-party app stores and the steering of users to alternative payment platforms.

App store regulations spread

The European Union forced Apple to support alternative app distribution and payment methods under its Digital Markets Act in 2024, and the company and its competitors have since faced similar regulations in countries such as Japan and Brazil.

Apple warned the Australian government in February 2025 that it risked causing “harms to its own citizens” by exposing them to scams and security issues if it followed the EU by forcing tech companies to open up their app stores and allow alternative payment methods.

The company will continue to attempt to reduce risks to Australian users, including children, which may arise from third-party app stores or payment systems, Information Age understands.

Australian law firms Phi Finney McDonald and Maurice Blackburn Lawyers are litigating class action lawsuits against both Apple and Google on behalf of local consumers and app developers, seeking compensation for how the two tech giants previously operated their respective app stores.