Apple and Epic Games have had a high-profile legal confrontation in the United States, and the two companies have also recently battled in Australian courts. In August this year, the Australian Federal Court ruled that the Apple App Store violated competition laws by banning sideloading and alternative payment methods.
The court did not publish a written judgment at the time, but recently released a 900-page judgment document, and more details of the ruling have been made public. Apple said it disagreed with the court's decision and would continue to defend its position in court.
Apple's statement said: "Apple does not have a monopoly in Australia or any market around the world. We strongly object to multiple rulings in this case, including market definitions that have been rejected by other courts. We will continue to seek an outcome that not only protects our intellectual property, but also ensures that consumers and developers have a safe and reliable experience from the App Store."
In the Australian case, Epic accused Apple of abusing its market power by restricting application distribution to the App Store, forcing in-app purchases of digital content and prohibiting alternative app stores and payment methods, hindering market competition.
The court adopted a narrower market definition, treating iOS as an independent ecosystem, and determined that Apple had a monopoly on iOS app distribution and in-app payment processing. Although Apple does not have to change its practices immediately, the court disagreed with its rules prohibiting sideloading and third-party payments.
Apple believes it is a mistake to view the iPhone as a single-brand market because it faces competition with other platforms such as the Google Play Store and Samsung Galaxy Store, as well as the PC and console software markets. Including the US courts, courts in other countries did not adopt this market definition in the case of Epic Games v. Apple.
The Australian court cited the European Digital Markets Act (DMA) as evidence that third-party distribution was feasible, but Apple said this view ignored the risks of bypassing App Store security and privacy protections. Apple's position is that sideloading can easily lead to malware, fraud and viruses, and users can easily be exposed to unrestricted content, which may damage iPhone users' trust in the device. Apple pointed out that the Digital Market Act has only been in place for a short period of time, and its impact on security cannot yet be fully assessed.
Still, Epic's success in Australia isn't all-encompassing. The court held that Apple had the right to charge for its intellectual property rights, that it was justified in refusing to support third-party app stores, and that it recognized the privacy and security protections provided by the App Store. Remedial measures to correct Apple's suspected anti-competitive behavior have not yet been determined, and relevant rectification instructions have not yet been issued. After the verdict was announced, Epic Games announced that "Fortnite" ("Fortnite") will return to the Australian iOS platform.