Background
In earlier liability reasons, the Federal Court held that Apple Inc had contravened s 46 of the Competition and Consumer Act 2010 (Cth). Apple possessed substantial power in the markets for iOS app-distribution services and iOS in-app payment solutions, and used contractual and technical restrictions that had the purpose, effect or likely effect of substantially lessening competition.
Those restrictions required native iOS apps to be distributed through Apple’s App Store, prevented developers and users from using alternative distribution channels, required Apple’s in-app purchasing system for digital content, and prohibited developers from steering users to other payment methods. This judgment determined the declarations, injunctions and costs orders needed to give effect to the liability findings.
The Court’s Holding
Justice Beach declared that Apple had contravened s 46 since 6 November 2017 and ordered it, upon Epic’s written application and subject to compliant terms, to permit Fortnite and Epic’s other native iOS apps to return to the App Store. For users with Australian Apple Accounts, Apple must also enable developers to distribute apps—including alternative app stores—through direct downloads and other channels, provided the apps undergo an automated security or privacy scan and are notarised by Apple or a suitably qualified third party.
The Court further prohibited Apple from requiring its in-app purchasing system for digital-content transactions, blocking alternative payment methods or steering, imposing certain deterrent fees or conditions, or retaliating against developers that use lawful alternatives. Most of these injunctions take effect at noon Melbourne time on 1 March 2027, although Apple may seek an evidence-based extension to 3 May 2027. The Court declined to impose Apple’s proposed five-year limit because the injunctions can later be varied or rescinded under s 80(3), and ordered Apple to pay 85% of Epic’s costs through the liability trial.
Key Takeaways
- Apple must open iOS app distribution in Australia to qualifying channels beyond the App Store, including direct downloads and alternative app stores.
- Developers must be permitted to use and direct users to payment methods other than Apple’s in-app purchasing system, subject to necessary and proportionate security requirements.
- The relief principally concerns the Australian App Store and users with Australian Apple Accounts, and most operative injunctions commence on 1 March 2027 unless the Court grants a limited extension.
Why It Matters
The orders require structural changes to Apple’s Australian iOS ecosystem rather than merely restraining the precise contractual provisions enforced against Epic. They limit Apple’s ability to use fees, technical barriers, contractual conditions or discriminatory treatment to undermine competing distribution and payment options.
The decision also illustrates the breadth of remedial relief available under s 80 of the Competition and Consumer Act following a misuse-of-market-power finding, while preserving tailored safeguards for genuine security and privacy risks.