Apple’s control over how iPhone users install apps and pay for digital purchases is facing another major challenge. Australia’s Federal Court has ordered the company to open iOS to rival app marketplaces and alternative payment services starting March 1, 2027, although Apple plans to appeal the decision.
Apple faces new limits on App Store control
The court’s order follows a finding in August 2025 that Apple had misused its market power by restricting competition in app distribution and payments. The new requirements aim to address those restrictions by giving developers more freedom to reach iPhone users.
Australia is following a similar path to the European Union, where the Digital Markets Act forced Apple to allow alternative app marketplaces and web-based app distribution. The changes arrived with iOS 17.4 in 2024, but Apple has continued to impose conditions and fees on developers using these options.
Under Australia’s new rules, users with their Apple Account regions set to Australia will be able to install and update apps through competing marketplaces and developer websites. Developers enrolled in Apple’s Developer Program will be eligible to distribute apps to eligible Australian users through alternative stores, regardless of where they’re based.
The ruling also requires Apple to provide the necessary tools for alternative distribution without deliberately making the process more difficult than installing apps through its own store. However, that doesn’t mean sideloaded apps will escape Apple’s security checks. Apps distributed outside the App Store will still need to pass automated security or privacy checks and receive notarization from Apple or a qualified third party, though Apple can’t use excessive restrictions to undermine competing distribution channels.
Developers to get more payment freedom
The ruling also target Apple’s control over in-app purchases. Developers will be able to offer competing payment services, link customers to external checkout pages, and set lower prices through alternative payment providers. Apple will not be allowed to force developers to offer its own payment system alongside these alternatives or demand reports and audits of transactions handled elsewhere. The order also limits the fees Apple can charge for eligible purchases made through competing services.
For users, the biggest potential benefit is more choice. Developers could find new ways to distribute apps and avoid some of Apple’s payment costs, though any savings passed on to customers will depend on individual businesses.
Apple doesn’t plan to accept the decision quietly. The company told Reuters it intends to appeal and seek a pause in enforcement, arguing that the changes raise concerns about intellectual property and App Store security. Unless the court delays implementation, the new rules will take efffect on March 1, 2027.
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