URGENT UPDATE: In a landmark ruling, the Federal Court of Australia has confirmed that tech giants Apple and Google engaged in anti-competitive conduct, potentially leading to payouts in the hundreds of millions of dollars. Epic Games, the developer of the globally popular game Fortnite, initially filed the lawsuit after being removed from both companies’ app stores in August 2020 for attempting to implement its own payment system.
On Tuesday, Justice Jonathan Beach declared that both companies violated Australia’s competition laws, significantly impacting the app marketplace. Justice Beach noted that Apple holds a “substantial degree of market power” due to its restrictive in-app payment policies, while Google is recognized as the leading supplier of Android apps. This ruling is set to reshape the landscape of digital platforms and their operations worldwide.
The court’s decision has also favored a class action lawsuit by Australian developers and gamers. They argued that Apple’s and Google’s monopolistic practices inflated app prices and imposed excessive commission fees. Legal representatives for the plaintiffs hailed the verdict as a critical win for consumer rights and digital fairness, stating it could lead to one of the largest class action payouts in Australian history.
“This judgment is a turning point,” said Kimi Nishimura from Maurice Blackburn Lawyers. “It sends a clear message that even the most powerful corporations must play by the rules and respect the rights of consumers and developers alike.”
Both Apple and Google have been given time to review the comprehensive 2,000-page judgment before returning to court to discuss compensation and directives aimed at enhancing transparency in their billing practices. A spokesperson for Google expressed disagreement with the court’s conclusions regarding its policies, while Apple welcomed the rejection of some claims made by Epic. However, the company strongly contested the ruling on other aspects.
Epic Games celebrated the court’s findings, announcing on social media, “A federal judge just found that Apple and Google both engaged in anti-competitive conduct. Another HUGE Win for Epic Games!” This ruling follows a previous victory for Epic in a U.S. case against Google in 2023 over similar anti-trust allegations related to the Google Play Store.
As the legal ramifications unfold, this case stands to have profound implications for how digital platforms operate globally. It emphasizes the need for fair competition in app distribution, impacting millions of developers and consumers alike. The next court date will be critical in determining the scale of compensation and further directives aimed at rectifying the competitive landscape in the tech industry.
Stay tuned as we continue to follow this developing story and its implications for the future of digital commerce.
