Apple must allow third-party app stores and payments in Australia
What's the story
Apple has been ordered by an Australian Federal Court to allow third-party app stores, direct app downloads, and alternative payment services for its users. The ruling comes into effect from March 1, 2027. The court found that Apple had abused its market dominance by restricting how users could download apps and make payments.
User impact
Ruling is applicable to these users
The court's ruling is applicable to users who have set their Apple Account region as Australia.
It also allows developers enrolled in the Apple Developer Program worldwide to participate.
Under these new rules, Apple will have to let users discover, download, install, and update apps via competing marketplaces and websites without charging them or creating unnecessary barriers for accessing these options.
Developer rights
Developers can distribute apps outside App Store
The ruling also mandates that developers must be given the tools they need to distribute apps outside Apple's App Store on nearly the same terms as those for App Store distribution.
Apple cannot penalize developers for using competing app stores or payment services.
This is a major shift from Apple's policies, which restricted such practices.
Payment options
Developers can offer alternative payment methods
The court's ruling also permits developers to offer alternative payment methods and direct users to other payment options within apps distributed through the App Store.
Apple cannot require developers to offer its own payment system alongside alternatives or audit transactions made through other services.
This gives developers more freedom in how they handle payments for their apps.
Fee limitations
In-app purchase fees capped
Apple has also been ordered to limit its in-app purchase fees and not charge extra if different payment methods are used.
For apps distributed through its own store, fees will be capped at the rate charged for payments for physical goods or services, plus any genuine and reasonable additional costs linked to digital purchases.
This is a major change from Apple's previous policies, which allowed it to charge higher fees.
Security measures
Security checks remain in place; Apple to appeal ruling
Despite these changes, security checks will remain in place for apps downloaded outside the App Store.
They must undergo an automated security or privacy scan and receive notarization from Apple or a qualified third party.
Notably, Apple has announced its intention to appeal the ruling, citing its intellectual property rights and App Store security as reasons for the appeal.