Epic Games, the creator of the widely popular game Fortnite, recently achieved a partial legal victory in an Australian court. The case, brought forward by billionaire CEO Tim Sweeney, accused tech giants Google and Apple of anti-competitive behaviour in their management of app stores.
Federal Court Justice Jonathan Beach upheld crucial aspects of Epic’s claims, determining that both companies had violated Australian competition laws by abusing their market influence to restrict rival app developers and engage in unfair trading practices. The ruling highlighted the significant impact of Google and Apple’s market dominance on competition within the app ecosystem.
However, not all of Epic’s claims were successful; the court dismissed allegations of unconscionable conduct by both firms. Sweeney, who is also challenging their market control in the United States and the United Kingdom, initiated this litigation in August 2020, following the removal of Fortnite from Apple’s App Store and Google’s Play Store due to Epic’s implementation of a direct payment feature.
The court found that both companies pressured developers, including Epic, into agreeing to distribute their products exclusively via their dominant app stores. Epic Games expressed optimism about the court’s findings, suggesting that it could potentially allow the Epic Games Store and Fortnite to operate on Apple’s iOS platform in Australia. In a statement, Epic underscored the significance of the ruling, claiming it was a victory for both developers and consumers across the country.
While Epic celebrated the outcome, Apple contended that they face intense competition in every market they operate in. The company expressed support for the court’s dismissal of several claims made by Epic but strongly disagreed with the decision on others. Likewise, Google’s response indicated plans to review the judgment while disputing the court’s portrayal of their billing policies and partnerships, asserting that these were developed amid a competitive environment.
Both Google and Apple have the option to appeal the ruling to a larger bench of the Federal Court. The judge has not yet released the detailed judgments pertaining to Epic’s cases against either company but provided an overview during a recent 90-minute court session. Lawyers are expected to reconvene in court for discussions regarding potential damages, though a date has yet to be established.