Epic Games, the developer of the hit online game Fortnite, secured a partial victory in an Australian Federal Court case accusing Apple Inc. (NASDAQ: AAPL) and Google LLC (NASDAQ: GOOGL) of anti-competitive conduct in the operation of their app stores.
In a decision delivered by Justice Jonathan Beach, the court upheld key elements of Epic’s claim that Apple and Google breached Australian competition laws by misusing their market power and engaging in restrictive trade practices. The court found that the companies’ dominance in the smartphone app market had the effect of substantially lessening competition in breach of Australian law, APnews reported.
However, the court rejected other aspects of Epic’s case, including allegations that Apple and Google engaged in “unconscionable conduct” as defined under Australian law. The full judgment—spanning more than 2,000 pages—was not released on Tuesday, but local media reported that the court concluded the companies had not intentionally breached the law.
Epic’s lawsuit, filed in 2020, followed the removal of Fortnite from both the App Store and Google Play Store after Epic introduced a direct payment feature that bypassed the platforms’ payment systems. The gaming company argued that Apple’s and Google’s commission fees were excessive and that their restrictions effectively prevented users from accessing alternative app stores.
In a post on social media platform X, Epic said the court had “found that Apple and Google abuse their control over app distribution and in-app payments to limit competition,” adding that Fortnite and the Epic Games Store would return to iOS in Australia. “This is a WIN for developers and consumers in Australia!” the company wrote.
Apple welcomed the court’s dismissal of certain claims but said it “strongly disagreed” with other findings. “Apple faces fierce competition in every market where we operate,” the company said in a statement.
Google similarly said it welcomed the rejection of some of Epic’s claims but disagreed with the court’s characterisation of its billing policies and historical partnerships. “We will review the full decision when we receive it and assess our next steps,” Google stated.
Epic’s legal battle with Apple and Google spans multiple jurisdictions, including the United States and the United Kingdom, and represents one of the most high-profile global challenges to the business models of dominant app store operators.
