Fortnite will soon be available again on iPhones in Australia after the Federal Court ruled that Apple and Google engaged in anti-competitive conduct. The decision follows a similar ruling in the United States earlier this year, which saw the game reinstated in the American App Store. While Epic Games welcomed the outcome, the broader battle over app distribution and payment systems continues in multiple countries.
Court Finds Tech Giants Misused Market Power
Justice Jonathan Beach found that both Apple and Google misused their market power by preventing direct downloading or sideloading of native apps and by blocking the use of alternative payment methods. These practices, the court ruled, had the purpose or effect of “substantially lessening competition in such markets.”
He rejected Apple’s defense that the restrictions were solely for security purposes, stating:
“The fact that Apple has imposed those centralized app distribution system for the purpose of protecting security does not entail that there is not also a substantial anti-competitive purpose involved.”
According to ABC News, the ruling clears the way for two major class actions involving 15 million consumers and 150,000 app developers who purchased or sold apps between November 2017 and June 2022. Lawyers representing the group estimate potential compensation “likely to be in the hundreds of millions of dollars.”
Epic Games and Class Actions Gain Ground
Epic Games, which launched the legal challenge after Fortnite was removed from both app stores in 2020 for introducing its own in-app payment system, called the ruling a “win for developers and consumers in Australia.” The company argued that the app store bans and payment restrictions inflated prices and stifled competition.
Apple said it welcomed the court’s rejection of some of Epic’s claims but “strongly disagree[d] with the court’s ruling on others.” In a statement to ABC, the company added:
“Apple faces fierce competition in every market where we operate. We continuously invest and innovate to make the App Store the safest place for users to get apps and a great business opportunity for developers in Australia and around the world.”
Google also disputed the court’s characterization of its billing policies, but noted the judge had recognized some competition beyond its Play Store. However, Justice Beach found that Google’s control over Android app distribution and its restrictive contracts also reduced competition and increased prices.
With Epic also fighting similar battles in the UK, US, and Europe, the Australian decision adds momentum to ongoing calls for stronger regulation of digital platforms. The Australian Competition and Consumer Commission (ACCC) said its five-year inquiry into digital platforms showed powerful companies often distort competition through practices such as denying interoperability and self-preferencing.
“We believe a digital platform regulatory regime will promote innovation, investment and productivity,” the ACCC spokesperson said.
