Melbourne, Australia – The legal battle between tech giants Apple and Google over control of their app stores takes center stage in a case unfolding in Melbourne’s federal court. Epic Games, the developer of the popular Fortnite game, alleges that the strict control exerted by Apple and Google over their app stores hinders competition and innovation.
Back in 2020, Fortnite was removed from the Google and Apple app stores after Epic Games introduced its own in-app payment system, circumventing the fees charged by the platforms. Subsequently, Epic Games launched a global legal battle against Apple and Google, accusing them of abusing their market power.
While Epic lost an antitrust case against Apple in 2021, it emerged victorious in a similar case against Google. Now, the Australian cases against both tech companies have been consolidated into one. The court is set to deliberate on allegations regarding Apple’s control over in-app purchases and Google’s restrictions on app distribution and in-app payments.
The cases highlight the differences in approach between Apple’s closed iOS and App Store ecosystem and Google’s more open Android system. While Apple mandates all app transactions go through its platform, Google permits side-loading of apps and enables alternative app stores, like Samsung’s. Both companies levy fees on developers for transactions within their app stores.
Epic contends that it should be allowed to offer its own store as a competitor to Apple’s App Store, providing users with alternative payment options. Meanwhile, Google asserts that its model offers more choice and openness to consumers and developers, emphasizing its commitment to maintaining security in the app ecosystem.
Amid ongoing legal proceedings, Apple has already been compelled to make changes in its European App Store following the implementation of the Digital Markets Act. These changes include allowing alternate payment options and marketplaces, signaling a shift in the tech industry’s approach to app store regulations.
The outcome of the case could have far-reaching implications on app store practices globally, as regulators and tech companies navigate the delicate balance between fostering competition and ensuring user security. With testimonies from key industry players expected and a class action representing Australian developers and consumers at stake, the resolution of this case is eagerly awaited.