Australia’s Federal Court has ruled that Apple and Google engaged in anti-competitive conduct by restricting competition in their app stores – a partial win for Fortnite developer Epic Games and a potential payday for millions of Australians.

Both companies were found to breach section 46 of the Competition and Consumer Act by using their control of app distribution and in-app payment systems to substantially lessen competition.

The judgment also upheld two class actions representing 15 million consumers and 150,000 developers, paving the way for what could be one of the largest corporate compensation payouts in Australian history – potentially in the hundreds of millions.

Epic’s long-running fight began in 2020 after Fortnite was pulled from Apple’s App Store and Google Play for bypassing their payment systems, which charge developers up to 30% per transaction.

While Apple’s iOS devices block all third-party app stores and “side-loading”, Google allows alternative app sources but still mandates its billing system for Play Store transactions.

Apple’s security arguments were found to not negate the anti-competitive effect of blocking rival payment methods and app distribution.

Google, meanwhile, was found to have maintained dominance in Android app distribution through restrictive contracts and practices.

However, the court rejected some of Epic’s broader claims, including allegations of unconscionable conduct and breaches of consumer law.

Epic hailed the decision as a win for developers and consumers, announcing Fortnite would return to iOS in Australia.

Apple said it “strongly disagreed” with parts of the ruling, insisting it faces “fierce competition” globally.

Google welcomed the rejection of some of Epic’s demands but signalled it may appeal.

Consumer advocates say the decision could trigger lower prices, greater choice and more innovation in Australia’s app market, but any changes to the tech giants’ store policies are likely years away.

The full 2,000-page judgment will be released after commercial redactions, with compensation amounts to be determined at a future hearing.