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Australian Court Rules Apple and Google Abused App Store Market Dominance
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In a significant victory for Epic Games in its global battle against major tech firms’ app store practices, Australia’s Federal Court announced on Tuesday that both Apple and Google engaged in anti-competitive behavior regarding their respective app marketplaces, as reported by ABC News. The ruling marks a key development in the ongoing debate over app store power dynamics and could reshape how digital distribution works in Australia.

Justice Jonathan Beach, who presided over the case, concluded that the two tech giants leveraged their dominant positions in the app distribution market to stifle competition. Specifically, the court found that their policies—such as controlling in-app purchase systems and limiting alternative app stores—created barriers that prevented rivals from entering or thriving in the space. However, the judge dismissed Epic Games’ claims that Apple and Google had engaged in “unconscionable conduct,” a narrower legal standard that would have required proving intentional unfairness beyond anti-competitive practices.

This ruling builds on Epic’s recent legal wins against Apple, most notably in the United States earlier this year. That U.S. victory led to Fortnite—Epic’s popular battle royale game—returning to Apple’s U.S. App Store after a five-year absence, ending a high-profile standoff over in-app purchase fees. Following Tuesday’s Australian ruling, Epic Games CEO Tim Sweeney signaled a similar outcome for the country, stating that both the Epic Games Store and Fortnite would soon be made available to Australian users through the Epic Games Store platform.

In response to the court’s decision, Google issued a statement that acknowledged partial agreement with the ruling while pushing back on key findings. “We welcome the court’s rejection of Epic’s demands to force us to distribute other app stores within Google Play, as well as Epic’s attacks on critical security protections that keep users safe,” a Google spokesperson said via email. “However, we disagree with the court’s characterization of our billing policies and practices, along with its conclusions about some of our past partnerships.”

Apple, meanwhile, emphasized its commitment to user safety in its response, echoing a common argument the company has made in app store disputes worldwide. “Our App Store remains the safest and most secure way for users in Australia to discover and download apps,” an Apple representative told ABC News. The company also noted its disagreement with the court’s findings on certain aspects of Epic’s claims, suggesting potential future legal challenges to the ruling.

The case centers on longstanding tensions between app developers and major tech platforms over app store fees (typically 15-30% of in-app purchases) and restrictive policies that limit alternatives. For years, developers like Epic have argued that Apple and Google’s control over app distribution creates a monopoly-like environment, while the tech firms have defended their practices as necessary to ensure user security, maintain platform quality, and fund app store infrastructure.

With this Australian ruling, the global regulatory pressure on Apple and Google’s app store models continues to mount. In addition to the U.S. and Australia, authorities in the European Union, South Korea, and the United Kingdom have either introduced new rules targeting app store practices or launched investigations into anti-competitive behavior. For users and developers in Australia, the decision could lead to more choice in app distribution—including access to alternative app stores—and potentially lower fees for in-app purchases, depending on how Apple and Google adjust their policies in response.

As of now, it remains unclear whether Apple or Google will appeal the Federal Court’s ruling. Any appeal would extend the legal process, but the current decision already represents a significant win for Epic and a blow to the two tech giants’ traditional app store dominance in Australia.

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