Question
Epic Games (Epic) sells its hugely successful game, Fortnite, via Apples App Store platform. Last month, Epic released an update on the Fortnite product, which
Epic Games (Epic) sells its hugely successful game, Fortnite, via Apples App Store platform. Last month, Epic released an update on the Fortnite product, which enables users to bypass Apples Apple Pay system and pay Epic directly for its in-app content. Under Epics contract with Apple, Apple receives a 30 per cent commission on in-app purchases made via its Apple Pay system. In response to Epics update, Apple removed the Fortnite game from its iOS platforms. Apple is allowed to do this under its contract with Epic, because it has the right to terminate the agreement for any reason whatsoever and without notice. As a result, Epic is now unable to generate any sales revenue from Apple users in Australia, including all iPhone and iPad users. Accepting that Apple had a contractual right to terminate its agreement with Epic, has Apple nevertheless broken any other Australian laws? Assume that Apple has a 40 per cent share of the smartphone, tablet and personal computer market in Australia.
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