SYDNEY, Aug 13 — In a landmark ruling for the gaming and tech industries, an Australian court has determined that Apple and Google misused their dominant positions in the app market, in a dispute involving the immensely popular video game Fortnite.
The saga began in 2020, when both tech giants removed Fortnite from their app stores after Epic Games, the game’s developer, introduced a new in-app payment system. This system allowed players to bypass the traditional payment methods controlled by Apple and Google, effectively cutting the companies out of the transaction process. The move triggered an international legal battle, as Epic Games sought to challenge what it called the unfair monopolistic practices of the two tech titans.
This week, Australia’s Federal Court ruled that the dominance of Apple’s App Store and Google Play Store had indeed reduced competition. The court noted that such market control likely forced game developers to pay higher commission fees than they would in a competitive environment. Epic Games hailed the decision as a major victory. “This is a WIN for developers and consumers in Australia!” the company said in an official statement on Tuesday.
However, not all of Epic’s claims were accepted. Justice Jonathan Beach dismissed the notion that Apple and Google engaged in unconscionable conduct. Google also issued a statement expressing disagreement with certain parts of the court’s findings and announced it would review the full decision before determining its next steps.
In addition, Australian lawyers have filed a class action lawsuit seeking compensation from Apple and Google, representing both game users and developers who may have been affected by the companies’ app store practices. Kimi Nishimura of Maurice Blackburn Lawyers called the ruling “a turning point,” emphasizing that it “sends a clear message that even the most powerful corporations must play by the rules and respect the rights of consumers and developers alike.”
Fortnite, which has become a global phenomenon with hundreds of millions of registered players, has long been at the center of debates over app store fees, digital monopolies, and fair competition. This ruling could have far-reaching implications for developers and consumers, not only in Australia but potentially in other markets worldwide where app store dominance has been questioned.
The case highlights ongoing tensions between developers seeking to maintain control over their in-game economies and tech giants that monetize their platforms through mandatory commission structures. As the global gaming industry continues to grow exponentially, decisions like this one may reshape the balance of power between developers and platform owners.
