Australians will soon be able to download apps outside the Apple App Store and avoid the extra fee for buying on iPhones under federal government proposals, but the tech giant warns EU-style app competition rules that stipulate app risk security and could harm competition.

Currently, Australian users cannot subscribe to Netflix or Spotify through their iOS app, while Google charges a premium for YouTube subscriptions through the App Store, and Amazon does not allow Kindle users to purchase e-books through the app.

This is due to Apple cutting up to 30% in-app purchases, which is suitable for the highest apps. Both companies cannot advise customers on how to make purchases elsewhere based on Apple rules.

In a paper published last November, the government outlined proposals for “designated” digital platforms such as the Apple App Store.

This will then force these platforms to comply with obligations that the government considers to be anti-competitive behavior.

The paper specifically highlights Apple's preferred in-app payment scheme, a type of behavior that competition regulators can target once a platform is specified and allows users to download apps from the official app Store called SideloDaiding.

In response to the paper, Apple said the government should not use the EU's Digital Markets Act (DMA) as a "blueprint" for the program.

"DMA needs to change Apple's ecosystem, which presents increased privacy and security risks for users, opens the door to malware, fraud and scams; illegal and harmful content; and other threats," the company said.

Apple believes that 30% interest rates charge only the highest revenue apps, with 90% of sales and bills $130 million and bills generated through the iOS app without Apple paying. It says most developers who pay for a 15% fee.

The company also warned against using the SideloDailing app. In addition to security risks, Apple said it would be unable to review the apps installed by users, and the company said in its submission that pornographic apps and apps that allow copyright infringement can be installed in the EU.

Users have long been able to download applications to MacBooks and other traditional computer devices in this way. The Android platform also allows apps and third-party purchases outside the Google Play Store.

The company also claims that DMA is the reason Apple delays its AI capabilities.

Foad Fadaghi, managing director and chief analyst at Telsyte, said opening Apple’s platform may be useful to some users, but it won’t change the way most people use their iPhones.

"People looking for the security and privacy of Apple devices may be worried that most people will choose lock mode by default," he said.

Australia is not an outlier - Apple faces regulatory and legal pressure in its App Store dominance in Asia, Europe and the United States. Although the company has complied with the laws of these jurisdictions, it resists pressure to keep the App Store consistent around the world. Apple previously changed its hardware globally to use USB-C connectors to comply with EU rules.

The government has not announced the next step in the process, and the submission of the paper has not been published by the Ministry of Finance.

Nearly a year since the hearing ended, the federal court's verdict on Epic Games' case against Apple and Google has not yet been reached.