Tech
Epic Games Wins Landmark Australian Court Battle Against Apple and Google Over App Store Monopoly
Table of Contents – Epic Games
Fortnite Developer Scores Major Victory in Fight for Fair App Store Competition
In a groundbreaking ruling, Epic Games, the creator of Fortnite, has secured a partial legal victory against tech giants Apple and Google in an Australian federal court. The case centered around anti-competitive practices in app stores, particularly regarding in-app payment restrictions and stifling developer competition.
Why Was Fortnite Banned from Apple and Google’s App Stores?
In 2020, Epic Games introduced its own in-app payment system in Fortnite, bypassing Apple and Google’s mandatory payment processors—and their 30% fee cut. In response, both companies removed Fortnite from their app stores, sparking a global legal battle.
Epic Games then launched lawsuits in multiple countries, including Australia, arguing that Apple and Google were misusing their market power to suppress competition.
What Did the Australian Court Rule?
Justice Jonathan Beach ruled that Apple breached Australia’s Competition and Consumer Act by:
- Blocking side-loading (installing apps outside the App Store)
- Preventing alternative payment methods for digital purchases
For Google, the court found violations related to its Play Store billing policies and “Project Hug”, an alleged scheme to keep major apps exclusive to the Play Store.
However, Epic did not win all claims, and the full implications of the ruling—including potential changes to app store policies—may take years to materialize.
What Does This Mean for Developers and Consumers?
- More payment options could emerge, reducing fees for developers.
- Greater competition may lead to lower app prices for users.
- Epic Games Store and Fortnite could return to iOS in Australia, though exact timelines remain unclear.
Epic’s Reaction: “A Win for Developers and Consumers!”
In a post on X (Twitter), Epic Games celebrated the decision, calling it a “WIN for developers and consumers in Australia.” However, they acknowledged that the 2,000+ page judgment requires further analysis.
Apple and Google’s Responses
- Google emphasized the “stark difference” between Android’s open ecosystem and Apple’s closed system, while disagreeing with some findings.
- Apple has yet to comment but may appeal.
Bigger Implications: A Warning to Tech Giants
Kimi Nishimura from Maurice Blackburn Lawyers (representing app developers in a related class action) called the ruling a “turning point”, stating:
“Even the most powerful corporations must play by the rules.”
What’s Next?
- The full judgment (over 900 pages per company) will be released later.
- A follow-up hearing will determine compensation for affected developers.
- Fortnite remains unavailable on Apple’s Australian App Store, but could return if policies change.
This case sets a major precedent in the global fight against Big Tech’s dominance, reinforcing the need for fair competition in digital marketplaces.