Google and Apple are being sued in Australia over alleged unfair and excessive commission fees charged in app stores.
This follows a jury verdict in the Epic versus Google case in San Francisco, which found that Google turned its Google Play app store and Google Play Billing service into an illegal monopoly.
The US court will in January decide what penalties to impose on Google, which is alleged to have used its market position to squeeze excess profits from app developers.
The giant digital platform plans to appeal: "We will continue to defend the Android business model and remain deeply committed to our users, partners and the broader Android ecosystem.”
Epic Games, the maker of online video game and game platform Fortnite, says the US court verdict is a win for all app developers and consumers around the world.
"It proves that Google’s app store practices are illegal and they abuse their monopoly to extract exorbitant fees, stifle competition and reduce innovation," Epic says.
"Over the course of the trial we saw evidence that Google was willing to pay billions of dollars to stifle alternative app stores by paying developers to abandon their own store efforts and direct distribution plans, and offering highly lucrative agreements with device manufacturers in exchange for excluding competing app stores.
"These deals were meant to cement Google’s dominance as the only app store in town - and it worked. More than 95% of apps are distributed through the Play Store on Android."
The Australian action by Epic is being heard together with a class action brought by law firms Phi Finney McDonald with Maurice Blackburn on behalf of app developers and consumers.
“We are looking forward to our day in court where we will be seeking significant compensation for developers and consumers who were disadvantaged by the excessive commissions levied by Apple and Google," says Kimi Nishimura, Maurice Blackburn class action principal lawyer.
The Australian class action, which allege the conduct of the two tech giants breach Australian Consumer Law, is scheduled for the Federal Court in March.
An inquiry by the Senate Economics References Committee has recommended the federal government introduce laws to “to prevent anti-competitive practices through the bundling of payment services and products by large digital platforms”.
Australians spend the most time on Google (including YouTube and search engines) and Meta-owned platforms (Facebook, Messenger, Instagram and Whatsapp), according analysis presented to the Senate inquiry.
The digital platform services inquiry by competition watchdog the ACCC found globally dominant platforms are also the most widely used digital platforms in Australia.
“Our case, which is being run alongside Epic’s cases against Apple and Google in Australia, seeks compensation for the app developers and consumers who, we say, have paid more than they should have due to Apple and Google's anti-competitive behaviour,” says Joel Phibbs, Phi Finney McDonald principal lawyer.
“The ACCC has already recommended a crackdown on these digital platforms as part of a proposed industry code of conduct.
“The Senate committee report further supports our position that Apple and Google's anti-competitive conduct needs to be addressed and the jury in California has now made findings that Google’s Play store and billing service is an illegal monopoly.
“While the Senate and the regulatory response are pleasing for the future of reform, they won't provide any form of redress.”
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