In a court decision in Australia, Epic Games emerges as the winner in a partial victory over tech giants Google and Apple
In a landmark decision, the Australian Federal Court has ruled that tech giants Apple and Google engaged in anti-competitive conduct and misused their market power in their app stores, violating Section 46 of Australia’s Competition and Consumer Act.
The court agreed with Epic Games that the practices of both companies, such as banning alternative payment systems inside apps, constituted restrictive trade practices and misuse of market power. This ruling potentially allows consumers and developers to seek compensation for fees paid to Apple and Google.
However, the court did not find that Apple and Google engaged in unconscionable conduct or prohibited exclusive dealing, rejecting some of Epic’s claims.
Following the ruling, Epic Games stated that Fortnite and the Epic Games Store will be allowed on Apple’s iOS platform in Australia, signaling a significant change in distribution possibilities.
The ruling is notable as the first significant application of Australia’s recently reformed misuse of market power law (since 2017) in the digital app store context, highlighting the legal impact on "walled garden" ecosystems created by Apple and Google.
Both Apple and Google have indicated disagreement with parts of the ruling and are expected to appeal within 28 days. Google disagrees with the court's characterization of their billing policies and practices, as well as its findings regarding some of their historical partnerships.
Lawyers will return to court on a date yet to be set to argue about the damages Epic is entitled to. U.S. billionaire chief executive Tim Sweeney, who is also challenging Google and Apple’s dominance in the app markets through the courts in the United States and Britain, will be closely watching the outcome.
In a statement, Epic Games said, "An Australian court just found that Apple and Google abuse their control over app distribution and in-app payments to limit competition." The litigation began in August 2020 when Apple’s App Store and Google’s Play Store expelled Fortnite because Epic installed a direct payment feature in the game.
The court case was brought by Epic Games, the company behind Fortnite, who claimed that Google and Apple engaged in anti-competitive conduct in running their app stores. The court ruled that both companies pressured app developers, including Epic, through contracts and technology to sell their products through the two dominant app stores.
This ruling marks a significant milestone in the ongoing battle against tech monopolies and could pave the way for similar cases in other jurisdictions. It remains to be seen how Apple and Google will respond to the ruling and whether they will indeed appeal the decision.
- The ruling in Seattle's federal court could potentially pave the way for consumers and developers in other jurisdictions to seek compensation for fees paid to technology companies like Apple and Google.
- Technology giants Apple and Google have shown disagreement with parts of the ruling, suggesting a possible appeal within the stipulated 28 days, particularly regarding Google's billing policies, practices, and some historical partnerships.
- The court case, initiated by Epic Games over alleged anti-competitive conduct in the management of app stores, has been significant, marking a milestone in the ongoing battle against tech monopolies.
- Following the landmark decision, Epic Games has announced that Fortnite and the Epic Games Store will be allowed on Apple’s iOS platform in Australia, suggesting a potential shift in the distribution possibilities of technology businesses.
