Federal Court rules against app store giants, paving way for consumer compensation
Apple and Google:A federal judge in Australia has delivered a major victory for consumers and app developers, ruling that tech giants Apple and Google engaged in anti-competitive practices through their app store policies.
The decision, centered on a dispute with Epic Games, the creator of Fortnite, could reshape the digital marketplace and lead to significant payouts for millions of Australians.
A Win for Consumers Anti-Competitive Conduct
Justice Jonathan Beach found that Apple and Google violated section 46 of the Competition and Consumer Act by abusing their market dominance in app distribution.
The ruling highlights how both companies restricted competition by enforcing exclusive payment systems and limiting third-party app stores, inflating prices for digital content.
This is a landmark win for fair competition,” said Joel Phibbs, principal at Phi Finney McDonald, representing developers and users in class actions against the tech giants.
Compensation on the Horizon
The decision opens the door for two class actions representing 15 million Australian consumers and 150,000 app developers who used the Apple App Store and Google Play Store between November 2017 and June 2022.
Legal teams estimate potential compensation in the “hundreds of millions of dollars,” to be determined at a future hearing. The payouts will reflect the inflated prices and commissions consumers and developers paid due to the companies’ anti-competitive practices.
Epic Games’ Battle
Fortnite’s Stand
The legal fight began in 2020 when Epic Games introduced an alternative in-app payment system in Fortnite, bypassing Apple and Google’s 15-30% commission fees.
Both companies swiftly removed Fortnite from their app stores, prompting Epic to sue, alleging monopolistic control over app distribution and payments.
Justice Beach ruled that Apple’s prohibition on direct app downloads (sideloading) and Google’s restrictive Play Store contracts stifled competition, though he dismissed claims of unconscionable conduct.
Global Context
Epic Games has pursued similar lawsuits worldwide, including in the US, UK, and Europe. A recent US Court of Appeals ruling upheld a jury verdict against Google, mandating changes to its Play Store policies. Apple, meanwhile, was ordered in the US to allow developers to direct users to alternative payment systems.
Epic’s global campaign is shaking up the tech industry,” said tech analyst Emily Chen, noting the broader push for fair digital markets.
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Industry Implications
Lower Prices, More Innovation
Consumer advocates and class action lawyers predict the ruling will lead to lower app prices, increased competition, and greater innovation in Australia’s digital ecosystem.
By curbing Apple and Google’s control over app distribution, the decision could empower smaller developers and alternative platforms. “This levels the playing field,” said Sarah Patel, a consumer rights advocate at Choice Australia.
Tech Giants’ Response
Apple issued a statement welcoming the court’s rejection of some of Epic’s claims but strongly disagreed with the anti-competitive findings.
We face fierce competition from Google, Samsung, and others, and our commissions have been decreasing,” Apple said, emphasizing the App Store’s safety and developer opportunities. Google expressed disappointment with the ruling, arguing that its billing policies were shaped in a competitive mobile landscape and that it offers alternative app distribution options.
Broader Impact Regulatory Push
The Australian Competition and Consumer Commission (ACCC) has long advocated for reforms to address anti-competitive practices by digital platforms.
A five-year inquiry concluded in 2025 highlighted issues like exclusivity agreements and restricted access to hardware and data. “This ruling strengthens the case for a robust digital platform regulatory regime,” an ACCC spokesperson said, aligning with global efforts to rein in tech giants.
Economic and Social Stakes
The case underscores the growing tension between tech monopolies and consumer rights, a sentiment echoed on X, where users praise Epic’s victory but question the pace of broader reforms.
The ruling also ties into 2025’s tech landscape, where AI-driven platforms (e.g.,) and financial innovations (e.g.,) face similar scrutiny over market control.
As Australia navigates this digital shift, the decision could set a precedent for fairer, more open app ecosystems.
This article is based on a report by David Swan, published by The Sydney Morning Herald on August 12, 2025. Additional context was drawn from posts on X discussing the Epic Games ruling and its implications for tech regulation.
