Apple and Google abuse their control over app distribution and in-app payments, court rules

Apple and Google have lost an important case in the Australian Federal Court. According to the judge, the tech companies have violated Australia’s Competition Act by implementing app store policies that restrict competition.

The legal trial began five years ago as four separate cases. However, because each case had overlapping issues, the court decided to treat them as a single case.

The trial concerned Apple’s and Google’s app store policies, which take a large cut from all app purchases, up to 30 percent. The case also included allegations of creating and maintaining an illegal monopoly over their app stores.

In August 2020, Epic Games implemented a direct payment option in Fortnite, one of its most popular and successful games, to bypass Apple’s 30 percent commission. In response, Apple removed Fortnite from the App Store for breaching its rules. That’s when Epic decided to file a lawsuit in Australia against both Apple and Google.

Epic’s lawyers argued that Apple and Google created so-called “walled gardens” to keep the competition out, which is a flagrant misuse of their market power. Apple and Google, on the other hand, claimed they had no monopoly and that the restrictions in the app stores were necessary to ensure users’ privacy and security.

Judge Jonathan Beach of the Australian Federal Court ruled against the tech companies, stating they have had a “substantial degree of market power” and breached Section 46 of Australia’s Competition Act, which prohibits “engaging in conduct that has the purpose, effect, or likely effect of substantially lessening competition in that or any other market.”

Epic Games is calling the verdict “a win for developers and consumers in Australia” on X. The Australian Competition & Consumer Commission (ACCC) has promised to closely examine the judgment.

The Epic Games Store and Fortnite will come to iOS in Australia! An Australian court just found that Apple and Google abuse their control over app distribution and in-app payments to limit competition. There are 2,000+ pages of findings that we’ll need to dig into to fully…

undefined Epic Games Newsroom (@EpicNewsroom) August 12, 2025

The verdict means that Epic Games will be allowed to bring the Epic Games Store and Fortnite to iOS in Australia, thereby bypassing Apple’s in-app purchases commissions.

Epic’s legal team called the court’s ruling a landmark win for consumers. “This judgment is a turning point. 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,” Kimi Nishimura, principal at Maurice Blackburn Lawyers, told local news outlets, including The Sydney Morning Herald.

Spokespersons from Apple and Google have said they will review the court’s decision to assess their next steps.