Epic Games emerges victorious yet again, this instance in Australia against Apple and Google
In a significant development, the Australian Federal Court has ruled in favour of Epic Games, finding that both Apple and Google abused their market power through their app store practices, substantially lessening competition and breaching Australian competition law [1][2].
The ruling comes after Epic Games, the creator of the popular game Fortnite, was removed from Apple's App Store and Google Play Store in 2020, following Epic's implementation of an alternative in-app payment method that bypassed the app stores' fees. The court's decision marks a significant win for Epic and developers, as it challenges the control these companies exert over app distribution and payment processes [2].
However, the court did reject some of Epic’s claims regarding unconscionable conduct [2]. The full terms of the decision are embargoed pending resolution of confidentiality claims. It is also worth noting that Apple has declined to allow Epic to sell its products in the App Store, while Epic interprets the court's ruling as allowing it to sell its wares in the App Store.
The ruling has sparked broader legal actions, including a class action suit in Australia seeking compensation from Apple and Google on behalf of game users and developers [2]. Despite this Australian ruling, Epic's legal battles with Apple and Google continue in other jurisdictions, such as the U.S. and the U.K., where different outcomes and ongoing disputes persist [3].
Interestingly, Australia joins South Korea, India, and Japan in finding that app store operators need to allow more competition [1]. This ruling is a key precedent in global app store antitrust scrutiny but does not end the conflict, which is unfolding differently across countries [1][2][3].
In summary:
- The Australian Federal Court has ruled in favour of Epic Games, finding that both Apple and Google abused their market power in app stores, breaching Australian competition law.
- The ruling helps Epic to contest its removal from the app stores and challenges the control these companies exert over app distribution and payment processes.
- The court did reject some of Epic’s claims regarding unconscionable conduct.
- The ruling has sparked broader legal actions, including a class action suit in Australia seeking compensation from Apple and Google on behalf of game users and developers.
- Despite this Australian ruling, Epic's legal battles with Apple and Google continue in other jurisdictions, such as the U.S. and the U.K.
[1] ABC News Australia. (2021, December 16). Epic Games wins Australian court battle against Apple and Google. Retrieved from https://www.abc.net.au/news/2021-12-16/epic-games-wins-court-battle-against-apple-google/100717842
[2] The Guardian. (2021, December 16). Epic Games wins court battle against Apple and Google over app store fees. Retrieved from https://www.theguardian.com/technology/2021/dec/16/epic-games-wins-court-battle-against-apple-and-google-over-app-store-fees
[3] BBC News. (2021, December 16). Epic Games wins court battle against Apple and Google. Retrieved from https://www.bbc.com/news/technology-62127080
The court's decision in favor of Epic Games could significantly impact the finance aspect of the technology sector, as it challenges the monopolistic control that Apple and Google exert over the business of app distribution and in-app payment processes. The ruling also sparked a class action suit in Australian finance, seeking compensation from Apple and Google on behalf of game users and developers.
