Australia finds Apple, Google breach app-store rules; Fortnite on iOS

A Federal Court of Australia has found that Apple Inc. and Google LLC breached local competition laws by abusing their dominance in operating mobile app stores. The ruling, issued in connection with multiple lawsuits led by Epic Games, states that the two tech giants’ control over app distribution and in-app payments substantially lessened competition and inflated costs for developers and consumers. The decision sets the stage for a payout discussion in a later hearing and signals a potential turning point in how app marketplaces are regulated in Australia. In parallel, Epic Games announced that its Epic Games Store and Fortnite will return to iOS devices in Australia, following the court’s findings.

The court’s findings focus on the ways Apple and Google manage their app ecosystems. It concluded that Apple’s and Google’s control over app distribution, combined with their in-app payment systems that collect commissions, had the effect of suppressing competition. The judge found that Apple’s practice of restricting distribution of native apps outside the official App Store and its centralized in-app payment system contributed to a substantially less competitive environment....