Thursday, December 2, 2021

Apple vs Epic to proceed in Australia after bid to delay rejected

Apple's request for special leave to appeal has been denied.

What you need to know

  • Apple vs Epic Games in Australia is going ahead.
  • A high court has rejected a request from Apple for special leave to appeal.
  • Courts previously ruled that Apple could not pause proceedings while the case in the US is ongoing.

Appel vs Epic Games will go to trial in Australia next year after an Australian High Court refused Apple's last-ditch attempt to stall the case.

As reported by AAP:

Tech giant Apple has lost a bid to prevent a case being heard in Australia that alleges it misused its market power over a popular online game.

The High Court in Canberra on Thursday refused Apple special leave to appeal against a Federal Court judgment that prevented the American multinational corporation from staying Epic Games' litigation in Australian courts.

A court in Sydney had previously granted Apple's request to delay the case, stating it should be filed in the U.S. as stipulated by the contract between Apple and Epic. However, a court in July overturned that ruling, and a Federal court backed up the move, with Australia's competition regulator even wading in:

The competition regulator intervened in the Federal Court appeal, arguing cases dealing with conduct that impacts on Australian markets and Australian consumers should be heard in Australia by Australian courts.

The Australian Competition and Consumer Commission chair Rod Sims said in July the case "raises important issues for competition in the digital marketplace".

Apple had submitted the Federal Court was a "clearly inappropriate forum" for a dispute between two large, successful, US companies that could be determined by the Californian court.

Epic Games sued Apple in Australia last year, at the time stating that "Apple's conduct in its App Store is a misuse of market power and substantially lessens competition in-app distribution and payment processes." CEO Tim Sweeney said the matter "goes to the heart of whether consumers and creators can do business together directly on mobile platforms or are forced to use monopoly channels against wishes and interests."

Meanwhile, in the U.S., Apple has renewed a bid to stop an injunction passed down by the court in the U.S. theatre of the legal battle, asking the Ninth Circuit to stay the injunction. According to Bloomberg:

Apple Inc. is asking a higher court to halt a judge's decision that will force changes to its App Store while a legal fight with Epic Games Inc. continues.

Lawyers for the company filed Tuesday with the U.S. Court of Appeals for the Ninth Circuit, seeking action by Dec. 8.


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