The Australian Federal Court Hears Final Arguments in Epic Games vs. Apple and Google Case

by Arthur Herring
in Action, News, PC
on 28 June 2024

Fortnite developer Epic Games and a class action group have presented their final arguments to Judge Jonathan Beach of the Australian Federal Court, alleging that Apple and Google have violated competition laws in their app stores. The case has attracted top competition lawyers in the country, with the trial spanning over 14 weeks.

Judge Beach, who is overseeing the case, is planning to take a six-month sabbatical after delivering the judgment. The Australian trial has taken place simultaneously with similar cases in the US, where Epic Games achieved a partial victory against Google but failed to secure a win against Apple, except on one issue.

While the US cases continue to develop, Google was recently ordered in a US court to disclose the cost and time frame for complying with the orders to open up its Play Store. The estimated cost is more than $60 million, and the timeframe is projected to be between 12 to 18 months.

In the ongoing legal battle between Apple and Epic Games in the US, the focus has been on Apple’s alleged non-compliance with an anti-steering injunction.

The outcome of the Australian case will have significant implications for the future of app stores and competition in the technology industry. It remains to be seen how Judge Beach will rule on the allegations of competition law breaches by Apple and Google.

The decision in this landmark case will shape the regulatory landscape for app stores and potentially impact the relationship between developers and major tech companies. Stay tuned for the judgment from the Australian Federal Court as this high-stakes legal saga unfolds.

Some additional relevant facts about the case could include:

– Epic Games initially launched a direct payment system in Fortnite that bypassed Apple and Google’s in-app purchase systems, leading to the removal of the game from both the App Store and Play Store.
– Epic Games argues that Apple and Google’s app store policies and fees create a monopoly and stifle competition.
– The Australian class action group joining Epic Games in the case consists of users who believe they have been harmed by the alleged anti-competitive behavior of Apple and Google.
– The trial in Australia has seen expert witnesses from both sides presenting evidence on various aspects of the case, including market dominance and the impact on developers and consumers.

Important Questions and Answers:

1. What are the main allegations made by Epic Games and the class action group against Apple and Google?
Ans: They allege that Apple and Google have violated competition laws in their app stores by imposing monopolistic policies and high fees that harm developers and limit consumer choice.

2. What could be the significance of the Australian case on the future of app stores and competition in the technology industry?
Ans: The decision in this case could potentially shape the regulatory landscape for app stores, leading to changes in policies and fees. It may also impact the relationships between developers and major tech companies.

Key Challenges and Controversies:

1. Monopoly Power: A major challenge revolves around determining whether Apple and Google possess monopoly power in the app store market and whether their practices are anti-competitive.

2. Market Impact: Assessing the impact of Apple and Google’s policies on developers and consumers is another challenge. The court needs to consider the potential benefits and drawbacks associated with the existing app store model.

Advantages and Disadvantages:

Advantages:
– App store policies and fees can help ensure user security and protect against malicious apps.
– Developers can access a large user base and benefit from the app store’s distribution infrastructure.

Disadvantages:
– High fees imposed by app stores can significantly reduce developers’ revenues.
– Developers have limited control over their apps and are subject to strict review processes and guidelines.