Epic Games has won a partial victory in Australia’s federal court against Apple and Google, with a judge finding some of the tech giants’ app-store restrictions likely reduced competition — but any practical changes in Australia could take a long time.
What the court decided
– Justice Jonathan Beach combined two separate Epic cases and two related class actions and found that Apple and Google breached section 46 of the Competition and Consumer Act by engaging in conduct likely to substantially lessen competition.
– Against Apple, the court concluded Apple’s ban on sideloading and its prohibition on developers offering alternative in-app payment methods on iOS amounted to misuse of market power.
– Against Google, the court found the Play Store’s billing system and a program known as Project Hug — which allegedly incentivised developers to stay in Google Play — also ran afoul of section 46.
– Epic did not prevail on all of its claims; the court rejected some of Epic’s other allegations.
– Two class actions brought by app developers succeeded; the question of how much developers were overcharged and what relief they will receive will be decided at a later hearing.
Background and current status
– Fortnite was removed from Apple’s and Google’s app stores in 2020 after Epic introduced its own in-app payment option that bypassed the platforms’ payment systems and their fees.
– Apple’s iOS ecosystem remains closed: apps and any in-app payments must go through the App Store. Google permits sideloading and allows third-party app stores (for example, Samsung’s), so on Android users can still access Fortnite via sideloading or the Samsung store.
– App-store fees typically range from 15% to 30% depending on revenue thresholds: Google charges 15% on the first US$1 million in developer earnings each year and 30% thereafter; Apple applies a similar 15%/30% band based on prior-year revenue. Epic’s own store charges a 12% fee.
– Epic said its app store and Fortnite will come to iOS in Australia but warned the court’s full findings exceed 2,000 pages and require detailed review before implementation.
Responses and next steps
– Epic hailed the decision as a win for developers and consumers in Australia.
– Google told reporters the judgment recognised “the stark difference between Android’s open platform and Apple’s closed system” and welcomed the court’s rejection of Epic’s attempt to run an app store inside an app store, while disputing some of the court’s characterisation of its billing practices and past partnerships.
– Both Apple and Google will review the full judgments and assess their next steps; appeals are possible and procedural steps will be required before any orders take effect.
– Beach’s summary judgment ran for 90 minutes; the full judgments for the Apple and Google cases are each over 900 pages, with the class action judgment exceeding 100 pages. Redacted versions will be released later to protect commercial sensitivities.
Why this matters
– The ruling signals judicial willingness in Australia to scrutinise how dominant platform owners control app distribution and payments — a legal recognition that their policies can limit competition.
– Developers may eventually gain more flexibility over how they distribute apps and accept payments, but the court’s findings do not translate into immediate changes. Implementation will depend on final orders, possible appeals, and regulatory or enforcement steps.
– Consumers could benefit from greater choice and potentially lower fees if alternative app stores or payment systems become available, but changes will likely be gradual.
Additional comments and logical explanation
– The judgement targets conduct the court found likely to lessen competition rather than declaring all aspects of app-store business models unlawful. That distinction means remedies will need to be tailored and could be narrower than broad calls for structural change.
– Because the full reasoning runs to thousands of pages and some findings were rejected, parties will have room to argue over remedies and to appeal — so expect a multiyear process before the market sees concrete effects in Australia.
– Developers and consumers should watch for the redacted full judgments and subsequent hearings, which will clarify what specific actions Apple and Google must take and the timeline for compliance.
Short summary
A federal judge in Australia found Apple and Google engaged in conduct likely to lessen competition by restricting sideloading and alternative payments; Epic won on several key claims and the developer-led class actions succeeded, but the full judgments are extensive, some claims were rejected, and any changes in Australia will take time as appeals, redactions and further hearings play out.
Hopeful angle
The decision marks a judicial recognition of competition concerns in app marketplaces. Even if change is slow, the ruling creates a legal pathway that could give developers more choices and consumers greater access and potentially lower costs in the long run.