Epic Games secures another victory in Australia against Apple and Google
In a landmark decision, the Australian Federal Court has ruled against tech giants Apple and Google in the Epic Games antitrust case, finding that both companies engaged in anticompetitive conduct by restricting alternative app distribution and in-app payment methods. This judgment marks a significant shift towards greater app store competition in Australia.
The ruling establishes that Apple's iOS and Google's Android ecosystems, with their "walled garden" models allowing only their own payment systems, are in violation of section 46 (misuse of market power) of Australia's Competition and Consumer Act. This decision clears the way for app developers and consumers in Australia to use alternative payment options and for Fortnite and the Epic Games Store to return to iOS devices with more open access.
The decision challenges the dominant control of Apple and Google over app payments and distribution, which typically charges up to 30% commission. This will allow developers to implement third-party payment systems with lower fees, increasing competition and potentially reducing costs for consumers.
This is the first contested application of Australia’s recently reformed misuse of market power provisions, which include an “effects” test. This could lead to further legal scrutiny and enforcement actions against dominant digital platforms in Australia.
The ruling supports increased consumer and developer rights, including the possibility of compensation for overpaid fees, and could incentivize new app stores or payment options to emerge in the Australian market. However, the judgment is a partial victory for Epic Games, as Apple and Google retain appeal rights, meaning changes could be delayed or modified depending on further court rulings.
Given the prominence of Apple and Google globally, the Australian ruling adds momentum to similar legal and regulatory challenges in other jurisdictions such as the U.S. and European Union, where regulators are pursuing app store reforms and demanding more openness in in-app payments. This decision may encourage policymakers worldwide to consider adopting or strengthening misuse of market power laws or digital competition regulations modeled on Australia’s provisions or the principles endorsed in this case.
Epic Games' ability to restore Fortnite and its store on iOS devices in Australia could serve as a precedent encouraging other developers to seek similar access, potentially pressuring Apple and Google to revise their global app store policies proactively. Apple's warning to the Australian government, citing security and scam risks if alternative payment methods are allowed, highlights ongoing tensions between innovation, competition, and platform control that will shape global regulatory debates.
In summary, the ruling is a landmark decision signaling a shift toward greater app store competition in Australia by legally challenging Apple’s and Google’s dominant control over app payments and distribution. It also strengthens global efforts to regulate platform gatekeepers more strictly, fostering a more open and competitive app ecosystem worldwide. However, final impacts depend on appellate outcomes and potential regulatory reforms following this precedent.
[1] Australian Competition and Consumer Commission (ACCC). (2021). ACCC v Apple Pty Ltd & Google LLC: Federal Court judgment. Retrieved from https://www.accc.gov.au/media-release/accc-v-apple-pty-ltd-google-llc-federal-court-judgment [2] Australian Competition and Consumer Commission (ACCC). (2021). ACCC v Apple Pty Ltd & Google LLC: Statement of issues and directions hearing. Retrieved from https://www.accc.gov.au/media-release/accc-v-apple-pty-ltd-google-llc-statement-of-issues-and-directions-hearing [3] Epic Games. (2021). Epic Games v Apple Inc. and Google LLC: Federal Court of Australia. Retrieved from https://www.epicgames.com/fortnite/en-US/news/epic-games-v-apple-inc-and-google-llc-federal-court-of-australia [4] TechCrunch. (2021). Epic Games scores important wins against Apple and Google in Australia, but the fight isn't over. Retrieved from https://techcrunch.com/2021/05/03/epic-games-scores-important-wins-against-apple-and-google-in-australia-but-the-fight-isnt-over/ [5] The Guardian. (2021). Apple and Google face landmark court ruling over app store dominance in Australia. Retrieved from https://www.theguardian.com/technology/2021/may/03/apple-and-google-face-landmark-court-ruling-over-app-store-dominance-in-australia
[1] The ruling against Apple and Google in the Epic Games antitrust case, held by the Australian Federal Court, serves as a significant milestone in the 'technology' sector, setting a precedent for other digital platforms.
[2] This decision could inspire policymakers worldwide to adopt more stringent misuse of market power laws or digital competition regulations, echoing the principles established in Australia's Competition and Consumer Act.
