Case Study: Defending Apple in Epic Games Litigation: Shaping Market Power and Digital Economy Law
The background
We are defending Apple in the Epic Games litigation in which Epic allege that Apple's conduct as regards its App Store business model amounts to a misuse of market power and anticompetitive conduct. We are also defending Apple in the associated class action proceedings commenced on behalf of developers and consumers seeking compensation for alleged overpayments arising from alleged inflated commission rates and purchase prices for paid apps or in-app digital content.
The importance
The matter has implications for Apple's App Store business model and, more broadly, the iOS ecosystem, both locally and abroad, and is attracting ACCC scrutiny and regulatory and legislative responses in Australia and other major jurisdictions. There have been few private competition law cases of this size and importance in Australia since the C7 case more than 10 years ago. This matter is likely to develop the law concerning the 2017 amendments to the market power provisions and explore the role of major participants in the digital economy and the interaction between hardware, software and services in that economy.