Epic Games Court Victory in Australia Against Google and Apple

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Epic Games wins partial victory in Australian court against Google and Apple

Even before the pandemic, there has been a long and complex legal battle going on around the world between app developers and big tech giants like Google and Apple over their app store policies and commissions. Also, in this battle, gaming company Epic Games has played a major role with its popular game Fortnite. So Epic Games has sued both Google and Apple in several countries, accusing them of anti-competitive behavior and monopoly through their app stores. So recently there has been a turning point in this legal battle. When the court of Australia has given a partial verdict in favor of Epic Games.

Epic Games vs Google and Apple What is this case?

The roots of this whole dispute lie in the ecosystem of the App Store. And Google and Apple run app stores for their respective mobile operating systems Android and iOS. Google Play Store for Google and Apple App Store for Apple. These app stores are the main means of downloading apps and making in-app purchases. Also Epic Games which is the maker of popular games like Fortnite. And has accused both these companies of abusing their monopoly on the App Store.

Also, Epic Games argues that both Google and Apple force developers to use only their payment systems for in-app purchases. Also, on which they charge a hefty commission of 15% to 30%. Epic Games has described this commission as unfair and anti-competitive. They say that this commission limits innovation and profit for developers, and ultimately harms consumers as well. In 2020, Epic Games attempted to implement its own payment system in its app, causing Google and Apple to immediately remove Fortnite from their app stores.

Australian court decision for Epic Games court victory

So a partial victory Epic Games filed a lawsuit against both Google and Apple in Australia, accusing them of violating competition law. The hearing of this case in the Australian Federal Court lasted several months, in which both sides presented their arguments. Recently, the court handed down a verdict that signaled a significant partial victory for Epic Games. Also the verdict against Google that the court found in its decision that Google had abused the monopoly on its Android app store Google Play Store. So the court concluded that Google manipulated its system to prevent developers from competing with other app stores in its app store. In addition, the court found that Google’s in-app payment policy that forces developers to use only Google’s payment system was anti-competitive.

The key points of this decision are as follows

Abuse of monopoly that the court found that Google used its Play Store to impose unfair conditions on developers and prevent competition. Also the payment system that the court believed that Google’s giving the only option of its own payment system and charging a huge commission on it was anti-competitive. And barriers to the market So the court also believed that Google had erected several technical and commercial barriers to prevent competition in its Android ecosystem.

After this decision, Google may have to make significant changes to its policies. The court has ordered Google to end anti-competitive behavior which may include allowing alternative app stores and payment systems on its platform. So that this decision can be a big relief for developers. Because it can provide them with more options and a better share of revenue for their apps.

Verdict against Apple

Although Epic Games won a big victory against Google, the result in the case of Apple was not as clear. Along with this, the court dismissed some of Epic Games’ claims against Apple while upholding some others. One-sided market The court recognized Apple’s App Store as a one-sided market which means that Apple has complete control over its platform. But the court did not clarify whether this control is anti-competitive or not. The argument of security and privacy which Apple had based its policies on the arguments of security and privacy was partially supported by the court. Apple says that using its payment system helps keep users safe. And the court did not completely reject this argument. Along with dismissing some claims, the court dismissed some of the major claims of Epic Games against Apple

Big blow for Google Epic Games court victory

This decision is a big blow to Google. Because it challenges its Play Store monopoly. And Google will now be forced to change its policies which can increase competition on the Android platform. As well as opportunities for developers, this decision can give developers the opportunity to use their payment systems and bypass Google’s commission. So this can give them a larger share of their revenue and encourage them to invest in new apps and services. As well as benefits for consumers who are increasingly paying more for their products.

Increasing competition will ultimately benefit consumers as well. And having more choices for developers increases the possibility of them offering apps and in-app purchases at a lower price. Also, the global impact that this verdict in Australia can have is that it can affect other ongoing lawsuits and regulatory investigations around the world. Governments and regulators in many countries are already investigating Google and Apple’s app store policies. And this verdict can provide a strong foundation for them.

Conclusion

The partial victory of Epic Games against Google in the Australian court is a turning point in the app store market. And this verdict challenges Google’s monopoly and promises more competition and freedom for developers and consumers. But the verdict against Apple was not so clear but it also shows that the complete control of big tech giants over their platforms is now under question. So this legal battle is still going on. But it is clear that the balance of power in the digital world is slowly changing. And the rules of the app store may be quite different in the future.