Google, Apple engaged in anti-competitive conduct: Federal Court
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More news: Google says it rejects the Federal Court's characterisation of its billing policies and practices as well as findings regarding some of its "historical partnerships" after Justice Jonathan Beach ruled that the tech giant engaged in anti-competitive conduct regarding some aspects of how the Google Play Store is run.
A Google spokesperson argued that the billing policies and practices as well as its historical partnerships "were all shaped in a fiercely competitive mobile landscape on behalf of users and developers".
However, they welcomed the court's rejection of plaintiff game developer Epic Games' "demands that we distribute app stores from within the Google Play store".
They also flagged that the court "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".
Google, Apple engaged in anti-competitive conduct: Federal Court
The news: Apple and Google have lost their court battle with Epic Games after Federal Court Justice Jonathan Beach ruled that the tech giants had engaged in anti-competitive conduct by misusing market power in how their app stores were run.
The context: The case was heard over a 16-week period in mid-2024. Epic initially sued Apple in 2020 for anti-competitive behaviour, including a restriction on using alternative payment services and for taking a 30% cut of every transaction on its store. The game developer filed a suit against Google in 2021 for the same reasons.
In an oral summary of his judgement, delivered on Tuesday, Beach said Apple had a “substantial degree of market power” regarding in-app payment solutions and the app distribution market and the companies had breached section 46 of the competition and consumer act by misusing market power to reduce competition.
However, claims from Epic that Apple and Google breached consumer law or engaged in unconscionable conduct were rejected.
The ruling was also in favour of class action lawsuits filed by Phi Finnery McDonald and Maurice Blackburn Lawyers on behalf of app developers.
The law firms also alleged that Apple and Google had “engaged in anti-competitive conduct that harmed Australian consumers and app developers by restricting fair access to digital marketplaces and inflating prices through monopolistic practices,” according to Maurice Blackburn.
Maurice Blackburn also said the ruling “paves the way” for a second stage hearing relating to compensation for consumers and developers and potentially directives regarding transparency and competition in app distribution and payment systems
The sources: ABC News, The Australian, The Australian Financial Review, Maurice Blackburn Lawyers media release
