In a landmark decision that reverberated across the global tech and gaming industries, Australia’s Federal Court ruled on August 13, 2025, that Apple and Google misused their market power by expelling Fortnite from their app stores in 2020—a move that, according to the court, stifled competition and forced game developers into paying higher commission fees. The ruling, which spans more than 2,000 pages, marks a significant victory for Epic Games, the developer behind Fortnite, and may set a precedent for app store regulation worldwide.
The dispute traces its origins to August 2020, when Epic Games introduced an in-app payment system for Fortnite that bypassed Apple’s and Google’s payment methods. This maneuver allowed Epic to avoid paying the standard 15 to 30% commission fees imposed by the tech giants. In swift retaliation, both companies removed Fortnite from their respective app stores, igniting a legal firestorm that would stretch across continents and years.
According to Reuters, the Australian Federal Court’s Justice Jonathan Beach found that Apple and Google leveraged their dominance to reduce competition, harming both developers and consumers. The court agreed with Epic’s claims regarding anti-competitive conduct but dismissed allegations of “unconscionable conduct.” Despite the partial nature of the victory, Epic Games was quick to celebrate the outcome. In a statement released on August 12, Epic declared, “This is a WIN for developers and consumers in Australia!” The company added, “There are 2,000+ pages of findings that we’ll need to dig into to fully understand the details.”
The immediate consequence of the ruling is clear: Fortnite is set to return to iPhones in Australia. Epic Games CEO Tim Sweeney announced via social media, “Fortnite will return to the Land Down Under through Epic Games Store at a date to be determined.” The move mirrors recent developments in other regions; Fortnite had already returned to the US App Store two months prior, is available in the EU via the Epic Games Store, and is scheduled to return to Japan later in 2025. In each case, Epic is seeking to bypass the traditional app store gatekeepers, offering its games directly to consumers.
The financial stakes are enormous. As Liam Deane, Principal Analyst for Games at Omdia, told Mathrubhumi, “Mobile app stores currently collect over $30 billion per year in distribution fees. With increased use of direct-to-consumer payments, much of this revenue could soon instead be captured by games publishers and/or passed on to consumers.” With Fortnite boasting approximately 650 million registered players worldwide and 1.3 million daily active users, the potential shift in revenue streams is significant—not just for Epic, but for the broader industry.
Epic’s case against Apple and Google in Australia is just one front in a global battle. The company has launched similar lawsuits in the United States, United Kingdom, and Europe. Each case centers on the same core complaint: that Apple and Google wield their app store dominance to impose excessive fees and block alternative app distribution methods, thereby harming competition and consumer choice.
Apple, for its part, enforces strict terms that prohibit third-party app stores on iPhones and iPads in Australia. Epic argued that these restrictions forced developers to hand over a substantial cut of their sales revenue—anywhere from 15% to 30%—to the tech giants. The court’s ruling, while not an outright condemnation of all Apple and Google’s practices, nonetheless found that their actions in the Fortnite case crossed the line into anti-competitive territory.
The implications may extend far beyond Epic and Fortnite. Australian lawyers have already filed a class action lawsuit seeking compensation from Apple and Google on behalf of both game developers and users. Kimi Nishimura of Maurice Blackburn Lawyers, which is leading the class action, said the judgment “sends a clear message that even the most powerful corporations must play by the rules and respect the rights of consumers and developers alike.”
For investors and market watchers, the ruling is a double-edged sword. On one hand, it underscores the growing global scrutiny of big tech’s dominance over digital marketplaces. On the other, its immediate financial impact appears limited—at least according to some analysts. Evercore ISI analyst Amit Daryanani told Ainvest that the decision was “no surprise” and predicted “minimal impact on Apple’s Services business from Australian-based in-app purchases.” Evercore continues to maintain an Outperform rating and a $250 price target on Apple shares, signaling that, for now, Wall Street isn’t panicking.
Still, the case has reignited the broader debate about competition in digital markets. The court found that Apple and Google’s app stores lacked sufficient protections against anti-competitive behavior, echoing concerns raised by regulators and lawmakers in other jurisdictions. Epic’s lawsuit argued that the tech giants not only charged excessive fees, but also made it difficult for users to access alternative app stores—effectively locking both developers and consumers into their ecosystems.
Google, for its part, responded cautiously to the verdict. A spokesperson said the company disagreed with some of the court’s findings and would “review the full decision when we receive it and assess our next steps.” Both Apple and Google are widely expected to consider appealing the ruling, which could drag the legal battle out even further.
For now, however, the tide appears to be turning in favor of developers. The Australian decision follows a growing international trend toward forcing greater openness and competition in digital marketplaces. In the EU, for instance, new regulations have already compelled Apple to allow alternative app stores on iOS devices, a move that is reshaping the landscape for both developers and consumers.
As the dust settles, one thing is certain: the fight over app store dominance is far from over. With billions of dollars and the future of digital commerce at stake, all eyes will remain fixed on the next moves from Apple, Google, Epic, and the world’s courts. For now, at least, Australian gamers can look forward to dropping back into Fortnite—and developers everywhere are watching closely.
