Apple and Google Android users in Australia are suing the California-based technology giants, alleging they used their market power to force app developers to use their payment systems, resulting in higher prices for consumers.
Twin legal actions allege Apple and Google have “a substantial degree of power in the markets for the purchase” of apps via the App Store and Google Play Store respectively, and the in-app purchase of content.
The two tech giants allegedly used their market power in the distribution of apps in Australia to force developers to use Apple and Google payment systems for apps and in-app purchases, then charged commissions of 30 per cent, or in some limited cases 15 per cent.
The class actions on behalf of consumers alleged this conduct breached Australian Consumer Law and resulted in higher prices than if competition was allowed in payment methods for apps and in-app purchases.
It is alleged Apple and Google had superior bargaining positions to app developers; took advantage of that position to breach consumer law; required developers to enter into non-negotiable, standard contracts that the tech giants would unilaterally amend; and the conduct was not necessary to protect their business interests.
The lawsuits include estimates that 55 per cent of the 20.6 million smartphones in Australia are iPhones and 45 percent of people use phones with the Android operating system.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI