Fortnite fight with Apple in Federal Court

Fortnite maker Epic Games has brought its landmark legal battle against Apple to Australia.

An Apple spokesman said: “Our priorities have always been to provide customers with a safe and trusted place to download software and to apply the rules equally to all developers.

Fortnite maker Epic Games has brought its landmark legal battle against Apple to Australia, taking on the tech giant in the Federal Court over its 30 per cent app store fee and alleging Apple has breached both Australian Consumer Law and the Competition and Consumer Act.

In a case described by Epic founder and CEO Tim Sweeney as the most significant of this decade, Epic is alleging Apple has an absolute monopoly over its mobile app store, and that Apple’s 30 per cent cut of in-app purchases is exorbitant. Apple has defended the fees as being in line with other retailers.

The battle comes as Australia’s consumer watchdog probes the alleged market duopoly of Apple and Google’s app stores.

Earlier this year Apple banned Fortnite from its app store after Epic launched its own in-app payment system, circumventing Apple’s purchasing systems. Epic then launched a suit in a California district court which is now heading towards a trial in May next year.

“Australia has millions of Fortnite players, and we have been trying to wage this battle in places with really strong democracies and legal systems,” Mr Sweeney told The Australian.

“The world would be a vastly better place if these platforms were opened up. I hate to overdramatise, but I think it’s the future of humanity. If giant corporations have the ability to control the dissemination of all digital goods and digital commerce, they’ll eventually come into control of all discourse in the world too.”

Epic is not seeking damages, but that Apple’s devices be opened up to allow apps from other app stores.

Apple and Google are already facing a showdown with Australia’s competition watchdog next year. The ACCC is investigating multiple issues including the use and sharing of data by apps, the extent of competition between Google and Apple’s app stores, and whether more pricing transparency is needed in Australia’s mobile apps market.

ACCC chair Rod Sims told The Australian Epic’s case would be a significant test of Section 46 of the Competition and Consumer Act, which prohibits firms that hold significant market power from lessening competition. “This is a matter of great interest to us,” Mr Sims said.

Teenager playing Fortnite on a Playstation 4

“If you’re going to be in the app business, you’ve probably got to be on (Apple or Google’s) stores. Epic are claiming they’re being forced to use Apple’s payment system, rather than their own, and it’s a really interesting issue about when positions of market power cross a line.”

An Apple spokesman said: “Our priorities have always been to provide customers with a safe and trusted place to download software and to apply the rules equally to all developers.

“Epic has been one of the most successful developers on the App Store, growing into a multi-billion-dollar business that reaches millions of iOS customers around the world, including Australia,” the spokesman said.

“In ways a judge has described as deceptive and clandestine, Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines that apply equally to every developer and protect customers.

“Their reckless behaviour made pawns of customers, and we look forward to making this clear to Australian courts.”