David vs. Goliath Down Under: Epic Games Secures Historic Victory Against Apple and Google in Australia

August 27, 2025

In a landmark decision that reverberates across the global tech industry, Australia's Federal Court has ruled in favor of Epic Games in its antitrust battle against tech giants Apple and Google, marking a significant milestone in the ongoing fight for app store reform worldwide.

The Verdict That Shook Silicon Valley

On Tuesday, Federal Court Justice Jonathan Beach delivered a partial victory to Epic Games, the maker of the globally popular battle royale game Fortnite. The court upheld key parts of Epic's claim that the tech giants breached Australian competition laws by misusing their market power against app developers and using restrictive trade practices.

Australia has ruled that Apple's App Store and Google's Play Store are uncompetitive, a decision that Epic Games has declared as a victory in its years-long legal crusade against what it views as monopolistic practices in mobile app distribution.

Breaking Down the Court's Findings

The Australian Federal Court's decision was comprehensive and damaging to both tech giants:

Against Apple: 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.

Against Google: The court determined that Google harmed Australian app developers and consumers by restricting choice in app distribution and in-app payments on Android devices.

Both companies were found to have violated section 46 of the Competition and Consumer Act, with their conduct deemed likely to reduce competition in the mobile app ecosystem.

The Road to Victory: A Brief History

This legal battle traces its origins back to 2020 when Epic Games deliberately bypassed Apple and Google's payment systems in Fortnite, resulting in the game's removal from both app stores. What started as a dispute over commission fees—with both platforms taking 15-30% of in-app purchases—evolved into a broader challenge to the fundamental structure of mobile app distribution.

Epic Games and class action lawyers accused Apple and Google of operating illegal monopolies, forcing developers to use their payment systems and restricting consumer choice. The case represented not just Epic's interests, but those of millions of consumers and thousands of developers who felt constrained by the current system.

What This Means for Consumers and Developers

The implications of this ruling extend far beyond Epic Games:

For Consumers: The decision affects approximately 15 million Australian consumers who may be entitled to compensation in a separate hearing yet to be scheduled.

For Developers: Around 150,000 app developers could benefit from this ruling, with the precise compensation amounts to be determined in future proceedings.

For the Industry: This sets a powerful precedent for antitrust enforcement in the digital economy, potentially influencing similar cases worldwide.

As Kimi Nishimura, principal at Maurice Blackburn Lawyers, noted in response to the ruling: "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."

Global Ripple Effects

This Australian victory comes at a time when both Apple and Google are facing increasing legal pressure worldwide. Recent developments include:

A U.S. appeals court recently upheld a ruling requiring Google to overhaul its Play Store operations following another Epic Games lawsuit
Apple has expressed concerns about potential financial losses in the hundreds of millions to billions of dollars from various legal challenges
The European Union has implemented the Digital Markets Act, forcing changes to app store practices

Fortnite's Return to iOS

Perhaps most significantly for gamers, Epic Games has announced that Fortnite will return to iOS devices in Australia as a result of this victory. This marks the first time since 2020 that iPhone users in any jurisdiction will be able to download Fortnite directly, representing a tangible win for consumers caught in the crossfire of this corporate battle.

Looking Ahead: The Fight Continues

While Epic celebrates this partial victory, the legal battle is far from over. The court will hold separate proceedings to determine compensation amounts, and both Apple and Google are likely to appeal the decision. Additionally, this ruling specifically applies to Australia, though it may influence similar cases in other jurisdictions.

The tech industry is watching closely as this case could set important precedents for how app stores operate globally. For Epic Games CEO Tim Sweeney, this represents another step toward his vision of a more open and competitive digital marketplace.

The Bigger Picture

This Australian court decision represents more than just a legal victory for one company—it's a validation of concerns raised by developers and consumer advocates worldwide about the concentration of power in digital platforms. As governments globally grapple with regulating big tech, this ruling provides a roadmap for how competition law can be applied to address anticompetitive practices in the digital age.

The battle for app store reform continues on multiple fronts, but Epic's Australian victory proves that even the most powerful tech giants are not above the law. For developers, consumers, and competition advocates worldwide, this decision offers hope that meaningful change in the mobile app ecosystem is not just possible, but inevitable.

This story continues to develop as both Apple and Google consider their next legal moves. The compensation hearings and potential appeals will be closely watched by the global tech community as indicators of how this landmark case will ultimately reshape the mobile app marketplace.

Related SearchL

Search This Blog

Todays News