🇦🇺Australia

Anti-Competitive Market Conduct & Potential Remedies

2 verified sources

Definition

Federal Court Justice Jonathan Beach ruled on August 12, 2025, that Apple and Google violated the Australian Competition and Consumer Act through anti-competitive practices. The court found that commissions up to 30% were maintained by restricting alternative payment methods. This creates two opportunities: (1) Potential compensation for historical overpayments (2020-2025), and (2) Future reduction/elimination of commissions if sideloading or alternative payments are mandated.

Key Findings

  • Financial Impact: Historical: Estimated AUD 50M-200M+ across Australian gaming industry for commissions paid 2020-2025 under anti-competitive terms. Per-studio: Small dev with AUD 500K revenue over 5 years = AUD 750K overpaid (30% vs. estimated 10-15% competitive rate). Future: If sideloading permitted, studios recover 15-30% of annual revenue.
  • Frequency: Historic (one-time potential compensation); ongoing (if remedies mandate lower fees)
  • Root Cause: Apple and Google market monopoly enforced through app store gatekeeping and payment method restrictions, found to violate Australian competition law

Why This Matters

The Pitch: Australian mobile gaming studios that paid 30% commissions from 2020-2025 may qualify for class-action compensation. Epic Games' partial victory suggests studios can recover a portion of historical overcharges (estimated 2,000+ pages of court findings). Future sideloading permissions could eliminate 30% fee entirely.

Affected Stakeholders

Studio legal/compliance teams, Finance managers (claims preparation), Executive leadership (litigation strategy)

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

App Store Commission Leakage

30% of gross transaction revenue; for AUD 100,000 revenue = AUD 30,000 loss. Developers with AUD 1M+ revenue face AUD 300,000+ annual commission leakage.

App Store Payout Processing Delay

45-day payment delay on monthly revenue; for AUD 500K/month = AUD 750K+ trapped in accounts receivable. Opportunity cost at 5% annual interest = AUD 37,500+ annually in lost capital efficiency.

Post-Launch Hidden Costs in Gaming Monetization

AUD 661-3,307/month in maintenance costs (recurring). Plus: 30% of gross revenue paid to platforms. For studio with AUD 500K annual revenue = AUD 150K annual commission + AUD 7.9K-39.7K annual maintenance = AUD 158K-190K total operational drag (33-38% of revenue).

Revenue Leakage from Mediation Discrepancies

2-5% of total ad revenue lost annually due to discrepancies; e.g., AUD 20,000-50,000 for AUD 1M revenue apps[2]

Time-to-Cash Drag in Ad Revenue Payouts

20-40 hours/month manual reconciliation; equivalent to AUD 1,000-2,000/month at AUD 50/hour auditor rate[2]

Hidden Fees in Mediation Revenue Share

5-15% of gross ad revenue skimmed as hidden platform fees; e.g., AUD 50,000-150,000/year for AUD 1M revenue[2]

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