Epic Games v. Apple
Epic claims that Apple is using control over its operating system and services to hold back competition, creating a monopoly on their App Store. The outcome of this case could lead to industry-wide changes for how users buy apps and make in-app purchases on their devices.
The court battle between Epic Games and Apple started April 3rd, and the results could mean big changes in the market for apps on mobile devises.
Here are the facts:
1. The lawsuit began in 2020 when Apple dropped the massively popular “Fortnite" game from its App Store after the game's developer, Epic Games, created a direct payment plan that bypassed Apple's platform. Apple said the service violated its guidelines.
2. Epic wants to give Apple less of a cut from their revenues and offer subscriptions, purchases, and customer support to their players without having to go through Apple.
- Apple takes a 30% cut from in-app revenue purchases, which has long been a contentious issue with developers.
- When Epic Games updated Fortnite across all platforms, they reduced the price of purchasing in-game currency by 20% if bought through Epic directly.
3. Epic lawyers are arguing that the Apple’s App Store policies are monopolistic and was not suing Apple for financial gain, rather to reform Apple’s “walled garden” for app developers.
4. Apple lawyers argued that by managing what is allowed on Apple devices safeguards “privacy and liability, security and quality” for users. Stating that Fortnite is available on other platforms and should not be seen as a monopoly.
5. Documents containing confidential information collected by both parties were meant to be sealed but were uploaded into public online court records. Some of these documents included a yet unannounced game streaming service planned by Walmart named Project Storm. Mark Rein, vice president of Epic games, played the demo and said “ the experience felt like playing on PS4 and superior to playing on Android or iOS. They also moved it over to a laptop in real time…it was more comfortable than playing on a Nintendo Switch.” Also reveal was the fact that Fortnite made over $9 billion in its first two years of release! Yes, BILLION!
At the heart of the dispute is 30% fee Apple charges app developers on purchases made directly inside apps and games. Epic alleges that Apple is using control over its operating system and services to hold back competition and creating a monopoly on their App Store. The outcome of this case could lead to industry-wide changes for how users buy apps and make in-app purchases on their devices.
All information and summaries are intended as informational only regarding legal trends and news. Nothing should be taken as legal advice or legal opinion and readers should seek out advice from legal counsel prior to acting on information provided by this blog.
