Beach found Apple has “significant market power” and that it and Google have breached section 46 of the Australian Competition Act, which prohibits “engaging in conduct that has the object, effect or likelihood of substantially lessening competition in that or any other market”.
Law firms that brought class action lawsuits against Apple and Google described the ruling as a significant victory for consumers.
“This ruling is a watershed moment,” said Kimi Nishimura, director of Maurice Blackburn Law. “It sends a clear message that even the most powerful corporations must play by the rules and respect the rights of both consumers and developers.”
Joel Phibbs, a director at law firm Phi Finney McDonald, said the victory could result in one of the largest class action settlements in Australian legal history, with potential compensation of several hundred million dollars.
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A Google spokesperson said: “We will review the full decision when we receive it and assess next steps,” while an Apple spokesperson said: “We welcome the Australian court’s dismissal of some of Epic’s claims, however we strongly disagree with the judgment being made against others.”
An Epic Games spokesperson said the decision will pave the way for Fortnite to be available on iPhones in Australia.
“The Epic Games Store and Fortnite are coming to iOS Australia. An Australian court has just found that Apple and Google are abusing their control over app distribution and in-app payments to restrict competition,” a spokesperson said.
“There are 2000 plus pages of findings that we will need to go through to fully understand the details. This is a win-win for developers and consumers in Australia.”
Australia’s competition watchdog, the ACCC, said it would closely review the ruling.
“We believe that private enforcement of competition laws can complement public enforcement and has the potential to improve deterrence,” the spokesperson said.
“However, litigation as the sole tool is not sufficient because of the long time required, during which competitive harm continues. Few private studio participants can also afford the significant resources required for litigation.”
“The ACCC continues to defend its recommendations in its investigation into digital platform services. Throughout its five-year investigation, the ACCC has observed that it is acting on the most powerful digital platforms that distort the competitive process.
“This conduct includes denial of interoperability, self-referencing and linking, exclusivity agreements, obstruction and obstruction of access, and withholding of access to critical hardware, software, and data inputs.”
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