Epic Games has taken its fight against Apple overseas by filing a legal claim against the tech giant in Australia. This legal claim is yet another development in the ongoing legal dispute between the Fortnite developer and the Cupertino, California-based tech company over commissions made from the App Store. Specifically, Epic Games attempted to introduce a way for players to purchase the in-game currency of V-bucks directly from Epic itself, rather than spending 20% more if purchased through the App Store where Apple would take a 30% revenue cut.
In the thirteen-page legal filing — filed in the Federal Court of Australia — Epic Games claims that the decisions over in-app purchases and banning Fortnite from the App Store breaches the Australian Consumer Law and various sections of the Competition and Consumer Act, particularly Section 46 which was added in 2017 following a 2015 review into Australian consumer protection law. This section is intended to prevent companies which hold a large amount of power like Apple from engaging in anti-competition acts.
The legal filing reads: “Apple’s conduct has hindered or prevented, and continues to hinder or prevent, Epic and other app developers and in-app content payment providers from competing or effectively competing in the iOS App Distribution Market and the iOS In-App Payment Processing Market.” In its own announcement, Epic Games has reiterated that its fight against Apple is for the sake of smaller developers and consumers.
In a FAQ published in conjunction with the announcement, Epic Games clarified that it had not filed action against Google in Australia. The Cary, North Carolina-based developer also highlighted that other companies including Amazon, Grubhub, McDonald’s, and StubHub are allowed by Apple to use their own in-app payment systems, while games and companies like Epic are restricted from this practice. Whether the Unreal Engine developer will make a move against Google is yet to be seen, considering that Google itself has distanced its own case from Apple’s situation.
Though the dispute between Epic Games and Apple/Google has brought about some amusing developments such as “Free Fortnite” merchandise and an advertisement from Epic parodying Apple’s famous “1984” commercial, there are serious implications that can stem from the Australian legal filing. The Australian Competition and Consumer Commission (ACCC) will release a report detailing its own investigation into Apple and Google’s app stores in March 2021, with this case set to inform the ACCC’s review.
While the American trial between Epic Games and Apple will not happen until May 2021, beginning legal proceedings in an English-speaking country which has comprehensive consumer protection laws has become the next step in the dispute. This case will be the first test for the App Store in Australia, with Section 46 of the Competition and Consumer Act being invoked. It is unknown when the Australian hearing will occur.
Fortnite is available on PC, PS4, PS5, Switch, Xbox One, and Xbox Series X/S.
Source: Epic Games
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