Apple Must Allow Alternative App Stores in Australia After Epic Games Ruling

An Australian federal judge has mandated significant changes to Apple’s App Store operations within the country, requiring the tech giant to allow iPhone users with Australian accounts to install applications from third-party stores and websites. The order, issued in a 235-page decision, sets a compliance deadline of March 1, 2027, though Apple may request an extension until May 3, subject to court approval. Apple has confirmed it intends to appeal the ruling.

Root cause

The ruling stems from a years-long antitrust battle initiated by Epic Games, which accused Apple of violating Australian competition law. Justice Jonathan Beach found that Apple holds substantial power in the iOS app distribution and in-app payment markets. The judge determined that Apple used its developer agreements and guidelines to restrict competition, specifically citing actions taken against Epic Games in 2020, including the removal of Fortnite and the termination of Epic’s developer account.

Attack path

Justice Beach described Apple’s enforcement of restrictive terms as a paradigm example of conduct that substantially lessens competition, contrary to section 46 of the Competition and Consumer Act 2010. The judge singled out several practices, including blocking app downloads outside the App Store, preventing developers from using alternative distribution channels, and prohibiting links to alternative payment methods. Apple was also found to have required developers to use its payment system and handle refunds exclusively through Apple.

Affected versions

The order applies to iPhone users holding Australian Apple Accounts. It mandates changes to the iOS ecosystem’s distribution and payment mechanisms rather than targeting specific software versions or hardware models. The ruling affects how apps are installed and how transactions are processed on devices operating within the Australian jurisdiction.

Mitigation

Apple has until February 15 to request an extension for the compliance deadline. The company has confirmed it will appeal the decision. If the appeal is unsuccessful and no extension is granted, Apple must implement the required changes by March 1, 2027. This includes allowing sideloading and alternative app stores.

What it means for organisations

Teams usually need to assess how regulatory shifts in app distribution impact their software supply chain and compliance frameworks. Organisations should determine whether their current distribution strategies rely exclusively on the App Store and if alternative channels are viable. Internal stakeholders, including legal, product, and security teams, must be informed of potential changes to payment processing and app installation methods. Check whether existing developer agreements require updates to accommodate new distribution rules.

Background: Supply chain attacks

Supply chain attacks in cyber security exploit the trust you place in third-party software components. Attackers inject malicious code into legitimate updates or build pipelines. You receive the payload as if it were benign. Defending requires verifying code origins, isolating build environments and treating all external inputs as hostile.

Read the full guide: Supply chain attacks in cyber security: how they work and how to stop them

What to do and how to stay safe: Apple

• Review current app distribution strategies to identify reliance on the App Store.
• Assess the security implications of allowing sideloading and third-party stores.
• Monitor legal developments regarding Apple’s appeal and potential compliance extensions.
• Prepare for potential changes in payment processing and refund handling mechanisms.

General security guidance from the TechSec Observer newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

When must Apple allow alternative app stores in Australia?

Apple must allow alternative app stores and sideloading for Australian users starting March 1, 2027, unless it secures an extension.

Why was this ruling issued?

The ruling was issued because an Australian federal judge found Apple violated competition law by restricting app distribution and payment methods.

Will Apple comply with the order?

Apple has confirmed it plans to appeal the decision and may seek an extension until May 3, 2027.