Google, Apple lose 'Fortnite' anticompetition lawsuit in Australia

UPI

a day ago

On Tuesday, an Australian judge ruled that Google and Apple's dominance over the in-store app marketplace was anticompetitive. Epic Games called it a "win" for Australian developers and consumers as the popular games Fortnite is set to return to iOS platforms in Australia. Photo by Keizo Mori/UPI | License Photo
Aug. 12 (UPI) -- Epic Games said its popular Fortnite video game will return to iOS platforms in Australia after its high court ruled on Tuesday that Google and Apple's dominance over the digital marketplace was anticompetitive.
Australian federal Judge Jonathan Beach ruled that both Google and Apple had misused their positions as the dominant players over in-app purchase commissions that included fees of up to 30% to cut back on competition.
On Tuesday, CEO Tim Sweeney said Fortnite will return to iPhones along with its Epic Games Store "at a date to be determined."
In a social media post, Sweeney called the ruling a "victory" in Australian antitrust proceedings via its nearly five-year-long legal battle against the tech giants.
Apple, the judge said, engaged in conduct that had the purpose or was "likely to have or had the effect of substantially lessening competition in such markets." He added that Google's conduct "had or is likely to have had the effect of substantially lessening competition in such markets."
Beach pointed to Apple's specific conduct that "prevents prohibits the direct downloading or sideloading of native apps and conduct that prevents or prohibits developers and users from using alternative payment methods."
But he rejected the accusations by Epic that the two companies had otherwise violated consumer laws and exhibited "unconscionable conduct."
Epic added that officials still need to sift through the nearly 2,000 pages of legal documents stemming from Tuesday's ruling.
Both Google and Apple officials "welcomed" Beach's rejection of certain parts of the ruling, but disagreed with the other aspects of Epic's characterizations and court victory.
Google spokesperson Dan Jackson said it disagreed with the "court's characterization of our billing policies and practices."
He added it included "findings regarding some of our historical partnerships, which were all shaped in a fiercely competitive mobile landscape on behalf of users and developers," he told The Verge.
"We will review the full decision when we receive it and assess our next steps," Jackson said.
The legal battle began in 2020 when Apple and Google kicked Fortnite off its app stores for bypassing their payment systems with its own.
Legal action against Apple that year was followed by a 2021 lawsuit against Google Australia.
Epic has filed lawsuits against both Apple and Google around the world in courts in Britain over in Europe and the United States.
The California-based U.S. Ninth Circuit Court of Appeals in July upheld a 2023 jury verdict against Google, saying it violated state and federal antitrust law by holding an illegal monopoly in Android app distribution and billing, and that Google unlawfully tied its billing system to Play Store.
On Tuesday, Apple officials stated the global tech giant faced "fierce competition in every market" where it operates.
"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," Apple told ABC in Australia.