Fortnite developer Epic Games has won a partial legal victory in the Australian Federal Court against Apple and Google over app store restrictions and in-app payment systems. Justice Jonathan Beach found that both companies engaged in conduct that reduced competition, breaching Section 46 of the Competition and Consumer Act.
Apple was found to have breached competition law by preventing the side-loading of applications on iOS devices and by restricting developers from using alternative payment methods. Apple's policies require all iOS apps to be installed via the App Store and all in-app purchases to be processed through its payment system, which charges transaction fees ranging from 15% to 30%.
Google breached competition law through its Play Store billing rules and its "Project Hug" program, which aimed to retain developers on the Google Play platform. While Android allows "side-loading," Google still applies restrictions to apps distributed through Google Play, with fees similar to Apple's.
Epic Games described the outcome as a "win for developers and consumers in Australia" and plans to reintroduce its app store and Fortnite to iOS in Australia. The court's judgments for Apple and Google each exceeded 900 pages, with the class action judgment over 100 pages. Any operational changes to the companies' app store strategies in Australia are expected to take time, pending further hearings to determine specific remedies.
Two class action cases brought by app developers against Apple and Google were also successful. The cases focused on whether the companies had overcharged developers over app store purchases given their market dominance.