Epic Games has secured a significant win against tech giants Apple Inc. (NASDAQ:AAPL) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) in an Australian federal court.
Court Says Apple, Google Tried To Limit Competition
Epic Games, maker of the hit title Fortnite, secured a partial win in Australia's federal court against Apple and Google over app store restrictions and limited competition in in-app payment options, reported ABC News Australia.
The court ruled that Apple misused its market power by controlling in-app purchases and blocking users from downloading apps outside its App Store, significantly reducing competition in app development. It also found that Google harmed Australian app developers and consumers by restricting choice in app distribution and in-app payments on Android devices.
Justice Jonathan Beach ruled that the two cases and a related class action would be heard together to prevent duplication of witness testimony. The court determined that Apple and Google had engaged in conduct likely to reduce competition, violating section 46 of the Competition and Consumer Act.
The precise compensation owed to 15 million consumers and 150,000 app developers will be decided in a separate hearing.
Kimi Nishimura, principal at Maurice Blackburn Lawyers told Guardian, "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."
Google, Apple Face Major Legal Setbacks Amid Epic Disputes
Epic Games and class action lawyers accused Apple and Google of running illegal app store monopolies by forcing developers to use their payment systems, taking 15–30% in fees. The dispute began in 2020 after Fortnite was removed for bypassing these commissions.
In a recent ruling, a U.S. appeals court upheld a lower court ruling requiring Google to overhaul its Play Store operations. This decision was a significant legal blow to Google, which had been accused of anticompetitive behavior by Epic Games.
Apple, on the other hand, has been facing its own legal battles. The company expressed apprehension over the potential consequences of a contempt ruling in favor of Epic Games, warning that this ruling could lead to “substantial” financial losses.
In another development on Monday, Elon Musk has threatened Apple with immediate legal action, accusing the tech giant of antitrust violations after allegedly suppressing his AI venture xAI’s Grok app in favor of OpenAI's ChatGPT.
Price Action: On a year-to-date basis, Apple stock fell 6.84%, while Alphabet stock climbed 5.77%, as per Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
