The tech giants have been dealt a massive blow after an Australian federal court ruled the companies have broken the law by misusing their market power in the way they run their app stores.
The judgement could lead to a wave of class actions brought against the tech titans and also impact how digital platforms operate in Australia. Consumer advocates say it may lead to increased competition and lower costs for app developers and consumers.
Future Media founder Ricky Sutton said that publishers could be in line for damages worth millions.
The class actions were brought by law firms Phi Finney McDonald and Maurice Blackburn on behalf of app developers who sold their apps and other content, as well as users who bought them on the Apple and Google stores between November 2017 until June 2022. Epic Games, the developer of blockbuster online game Fortnite, also brought two cases against the tech giants.
Judge Jonathan Beach found that Google and Apple breached section 46 of the Competition and Consumer Act and had misused their market power to reduce competition. This included a “material” overcharge in the 15-30 per cent fees that Google and Apple charge to use their payment platforms.
He ruled that Apple had a “substantial degree of market power” because of the restrictions placed on in-app payment systems and the distribution of iOS-compatible apps. Google was also judged to have a “significant degree” of market power as the supplier of Android apps.
Their monopolistic dominance of the app market lessened competition and led to inflated prices.
While Justice Beach found that Apple’s refusal to allow third-party app stores or sideloading on iOS devices lessened competition, he acknowledged that Google allowed both third-party app stores and direct downloading on Android devices.
However, Judge Beacher rejected other allegations that the companies had engaged in unconscionable conduct.
Google and Apple maintain that there is plenty of competition and “strongly disagree” with the court’s ruling.
“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,” Apple said in a statement.
A Google spokesperson said told B&T: “The court today recognised the stark difference between Android’s open platform and Apple’s closed system, affirming that Android gives Australian consumers and developers significantly more choice and flexibility, including through multiple app distribution options beyond Google Play. We welcome the court’s rejection of Epic’s demands that we distribute app stores from within the Google Play store, and Epic’s attacks on other critical security protections that users rely on.
“However, 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 on behalf of users and developers. We will review the full decision when we receive it and assess our next steps.”
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
Epic Games, the developer of Fortnite, sued the companies alleging that Google and Apple ran illegal monopolies for app sales by banning or heavily discouraging other stores or websites.
In 2020, Fortnite was removed from their app stores for bypassing Google and Apple’s payment platforms, leading to a legal battle across the world.
App developers have been forced to use the tech giants’ payment platforms where Apple and Google collect between 15 and 30 per cent of sales revenue in fees.
