A FEDERAL court in Australia has ruled that Apple and Google misused their market power by restricting alternative app distribution and payment methods in their smartphone app stores, marking a legal victory for Fortnite creator Epic Games.
Epic, which filed separate cases in 2020 and 2021, said on X that the court found the tech giants “abuse their control over app distribution and in-app payments to limit competition,” calling the decision “a win for developers and consumers in Australia.”
According to a summary by law firm Gilbert and Tobin as reported on Mobile World Live on Aug. 13, the court determined that the companies’ practices since 2017 breached the country’s Competition and Consumer Act. The ruling noted that Apple and Google forced developers to pay higher commissions through their app store rules.
The case is the first contested test of Australia’s revised misuse of market power law, which took effect in 2017 and addresses “walled garden” ecosystems. The court concluded both companies engaged in conduct with the “purpose, effect or likely effect” of significantly reducing competition in app distribution and in-app payment markets.
However, the court dismissed Epic’s other claims involving exclusive dealings, anti-competitive agreements, and allegations of unconscionable conduct in operating system licensing to device manufacturers.
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Apple and Google have 28 days to appeal the decision.
