Epic Games picks new fight with Google over app charges

Already deep in a fight with Apple, Fortnite maker Epic Games is now taking on Google in Australia.

Fortnite is one of the world’s most popular games. Picture: Supplied.

Computer games maker Epic has launched an abuse of market power case against Google adding to an earlier action against Apple over mobile phone app charges.

Apple and Google account for 99 per cent of the operating systems for Australian mobile devices and they both impose a surcharge of 30 per cent of revenue on any app developer who operates on their systems.

The Australian action launched by Epic on Wednesday is under Section 46 of Australia’s competition law which outlaws abuse of market power.

The move comes as the ACCC is finalising its draft report on the app industry in Australia.

Epic, which produces the hit game Fortnite has taken its case against Apple and Google around the world but the Australian action is under abuse of market power and the loss of competition in the Australian market.

Epic founder Tim Sweeney. Source: Supplied.

The Google case will be heard by Justice Nye Perram in the Federal Court. He is also hearing the Apple case.

Epic’s action alleges the surcharges impose a tax on game developers and destroy competition in the market.

Apple operating systems run 55 per cent of the mobile phones in Australia and Google’s Android operating system has 44 per cent per cent market share.

ACCC chief Rod Sims welcomed the action saying”its good to see private actions from well resourced companies to test the law. Its also good to see the action against Google as well as Apple because they both operate differently.”

Epic boss Tim Sweeney is making a global assault on the mobile phone operators in an attempt to open competition in the market.

He argues people should have access to apps without developers being subject to punitive taxes which impede competition

“Google gives the illusion of being open by making arguments about the presence of alternative app stores on its platform or allowing direct downloading of apps from third party providers, but inreality these situations are so rare that they barely make a dent in the monopoly of the Android OS”, Mr Sweeney said in a statement.

“The barriers Google places on Android OS are real. In the case of direct downloading, it makes the process so difficult and scary that it deters users from downloading apps from third party-websites even though it is a totally normal way for users to get apps on a desktop.

“It’s actions like this that illustrate Google is more interested in feigning openness than delivering choice to consumers. We believe consumers have the right to install apps from sources of their choosing and developers have the right to compete in a fair marketplace.”