Australia’s consumer and competition watchdog has applied to intervene in the legal showdown between Apple and Fortnite-maker Epic Games, in an attempt to reverse a previous judgement that the local case be suspended as the tech giants battled it out in American courts.
Epic brought legal action against Apple in Australia late last year, alleging its operation of the App Store and payment mechanisms on iPhone and other platforms was monopolistic and breached Australian law.
Epic’s case alleges Apple’s App Store gives it anti-competitive power.Credit:Bloomberg
Last month Apple successfully requested the issue be suspended in Australia as its business with Epic was in California, but Epic has appealed that decision and will appear in Federal Court in June. The ACCC has applied to speak not in favour of Apple or Epic, or as to whether Apple breached Australian law, but rather to argue the importance of the case going ahead in Australia.
“Our view is that it’s in the public interest to have these sorts of cases heard in Australia, because then it’s an Australian court giving a view, and it’s therefore got future relevance to Australian cases,” said ACCC chair Rod Sims.
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“If it’s dealt with in the US, that won’t have anything like the same effect on establishing precedent.”
Mr Sims pointed specifically to a recently amended section of consumer law that prohibits corporations with a substantial degree of market power from engaging in conduct that lessens competition, saying a case such as Epic’s was clearly relevant to establishing the meaning of that law.
“Whichever way the court case goes, it will be very important for development of app markets in Australia,” he said.
“We won’t have that benefit if it’s just in the US court. That won’t tell us what we need to know.”