What just happened? An Australian federal court delivered a landmark victory to Epic Games and millions of app users on Tuesday, ruling that Apple and Google engaged in anti-competitive practices through their app store operations. The decision could reshape how gamers and developers interact with mobile platforms – and potentially put money back in their pockets.
Federal Judge Jonathan Beach found both tech giants violated Australia's Competition and Consumer Act by misusing their market power through restrictive app distribution and mandatory payment systems that stifled competition. The court found Apple's App Store operates as the exclusive platform for iOS apps, making it "technically impossible" to download apps outside of Apple's ecosystem. Both Apple and Google require developers to use their in-house payment platforms, collecting 15 – 30 percent commission on all sales.
Judge Beach wrote that Apple's rules went beyond security concerns and into territory that harmed competition.
"[Apple] engaged in conduct that had the purpose or is likely to have or had the effect of substantially lessening competition in [app distribution] markets," he wrote. "Specifically, conduct that prevents or prohibits the direct downloading or sideloading of native apps and conduct that prevents or prohibits developers and users from using alternative payment methods."
Apple argued these measures protected users from security risks, but the court found they primarily served to lock developers and consumers into Apple's ecosystem.
The Epic Games Store and Fortnite will come to iOS in Australia! An Australian court just found that Apple and Google abuse their control over app distribution and in-app payments to limit competition. There are 2,000+ pages of findings that we'll need to dig into to fully…
– Epic Games Newsroom (@EpicNewsroom) August 12, 2025
Google faced similar findings despite Android's more open ecosystem. The court determined that the search giant's billing requirements and restrictive partner contracts substantially reduced competition, even though Android users can access alternative app stores.
The financial stakes are high. Class action lawyers estimate compensation could reach hundreds of millions of dollars for about 15 million Australian consumers and 150,000 app developers who made purchases between November 2017 and June 2022. The key question in determining payouts will be how much less users would have paid without these anti-competitive practices. For gamers who regularly purchase in-app content, DLC, or premium games, that could mean meaningful refunds.
The case traces back to 2020, when Epic Games introduced an external payment system in Fortnite to bypass Apple and Google commissions – promptly getting kicked off both platforms. Epic's decision to risk Fortnite's mobile presence has now paid off in court.
The ruling could lead to lower prices for games and in-app purchases as developers gain payment flexibility. It may also spur more direct distribution options and alternative app stores, giving developers greater leverage with platform holders.
The win adds to Epic's global legal streak. Last month, a US appeals court upheld similar antitrust findings against Google, while Apple faces growing pressure in multiple jurisdictions to open its ecosystem. Both companies plan to appeal.
"We disagree with the court's characterisation of our billing policies and practices, as well as its findings regarding some of our historical partnerships, which were all shaped in a fiercely competitive mobile landscape," Google said in a statement.
Apple shared similar sentiments.
"We welcome the Australian court's rejection of some of Epic's claims; however, we strongly disagree with the court's ruling on others. Apple faces fierce competition in every market where we operate. We continuously invest and innovate to make the App Store the safest place for users to get apps and a great business opportunity for developers in Australia and around the world."
Australia's ruling follows UK regulators' decision not to force tech giants to open their platforms, despite finding the App Store and Google Play to be parallel monopolies. However, mounting legal pressure in other regions suggests the era of unchallenged app store dominance may be ending, potentially ushering in a more competitive – and consumer-friendly – mobile market.
Epic scores international win as Australia orders Apple, Google to open ecosystems
