Apple and Google's App-Store Dominance Found Misused by Australian Court

Fortnite developer Epic Games has won a case against Apple and Google in an Australian court, with the judge finding that the tech giants misused their market power. The dispute arose after Apple and Google kicked Fortnite off their app platforms in 2020, as the game designed an in-app payments system that cut the tech giants out of the loop. The court ruled that Apple and Google's app-store dominance reduced competition, forcing game developers to pay higher commission fees.

Fortnite developer Epic Games has won a significant case against Apple Inc. (AAPL) and Alphabet Inc. (GOOGL) in an Australian federal court, with the judge finding that the tech giants misused their market power. The dispute, which began in 2020, revolved around Apple and Google's removal of Fortnite from their app platforms due to the game's in-app payment system, which bypassed the companies' commission fees.

The court ruled that Apple and Google's app-store dominance reduced competition, forcing game developers to pay higher commission fees. The ruling found that both companies had engaged in conduct likely to reduce competition, violating section 46 of the Competition and Consumer Act. The precise compensation owed to 15 million consumers and 150,000 app developers will be decided in a separate hearing.

Apple and Google welcomed the court's rejection of some of Epic Games' claims but disagreed with the ruling on others. Apple stated that it faces fierce competition in every market where it operates, while Google maintained that its billing policies and practices were shaped in a fiercely competitive mobile landscape. Both companies plan to review the full decision and assess their next steps.

The ruling is part of a broader legal dispute between Epic Games and the tech giants, with similar cases ongoing in other jurisdictions. In a recent U.S. appeals court ruling, Google was required to overhaul its Play Store operations, while Apple continues to face legal battles over its app store practices.

References:

[1] https://www.reuters.com/legal/litigation/australia-court-rules-partly-against-apple-google-epic-games-lawsuit-2025-08-12/
[2] https://www.benzinga.com/news/legal/25/08/47057842/epic-games-wins-partial-victory-against-apple-google-in-australian-court-what-happened
[3] https://www.marketscreener.com/news/musk-says-apple-favoring-openai-on-iphone-ce7c51dadc8eff25