In a dispute that has tested the reach of Australia’s competition law in the digital economy, Epic Games has secured a major victory against Apple and Google in the Federal Court of Australia.
On 12 August 2025, the Federal Court of Australia ruled that Apple and Google engaged in anti-competitive conduct by restricting alternative app distribution and in-app payment methods on their mobile platforms. This decision marks a significant development in the application of Australia’s competition law to digital platforms.
Epic Games, the developer of Fortnite, initiated legal proceedings against Apple in November 2020 and against Google in March 2021. The company alleged that both Apple and Google misused their market power by imposing restrictive practices on app distribution and payment systems, in violation of the Competition and Consumer Act 2010 (Cth) (CCA) and the Australian Consumer Law (ACL).
The Federal Court found that Apple and Google each held substantial market power in the mobile operating system market and that their conduct substantially lessened competition, in breach of section 46 of the CCA. The Court found that both companies’ practices created “walled gardens”, limiting developers’ ability to distribute apps and process payments outside their ecosystems.
Implications for the Digital Marketplace
This decision is a significant development for both app developers and consumers. It underscores the increasing willingness of Australian courts to apply competition law to digital platforms and may influence broader regulatory and enforcement approaches in the technology sector.
Next Steps
Apple and Google have 28 days to appeal the decision to the Full Federal Court of Australia. The outcomes of any appeal will be closely watched, as they may influence future regulatory approaches to digital platforms in Australia.
Takeaway
For app developers, this ruling emphasises the importance of reviewing platform agreements and payment policies. Developers should be aware that restrictions imposed by app store operators, such as mandatory use of in-app payment systems or limitations on alternative distribution channels, may constitute anti-competitive conduct under Australian law.
Early legal review of agreements and proactive engagement with platform policies can help developers protect their commercial interests and reduce the risk of being constrained by restrictive practices.
Contact a member of our Intellectual Property + Technology team if you have questions about this alert or need advice related to platform agreements and payment policies.
For further information contact Ben Gouldson.
The assistance of Melanie Sharpe, Lawyer, in researching this article is gratefully acknowledged.
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