Epic countered by. It isn’t searching for cash from both firm, simply that they repeal what Epic considers the businesses’ monopolistic practices. And it comes at a time when each Europe and the US are .
Why did this happen?
Fortnite is a free-to-play game, meaning it’s free to download and Epic makes money from in-game purchases. Players can buy V-Bucks, in-game currency, which are used to buy new outfits, weapons and skins. It’s a hugely profitable business model. Fortnite generated $4.2 billion over 2018 and 2019.
But Epic has never approved of the 30% cut taken by Apple and Google on their respective app stories, so it set up a direct payment system allowing players to buy V-Bucks for cheaper through Epic, circumventing Apple and Google. When buying 1,000 V-Bucks, players were given a choice over paying $9.99 via the App Store or $7.99 through Epic.
Apple wasn’t having that, so it pulled Fortnite from the App Store. Google followed hours later, although Android gamers can still download the game directly through Epic — and if you previously downloaded it on iOS, you can still re-download it (you just won’t be able to update it or play new seasons).
And now Epic is suing Apple?
It sure is.
Epic on Thursday filed a lawsuit against Apple in the North District of California court accusing Apple of anti-competitive practices for app distribution and app-related payments. It stresses it’s not looking for compensation or special treatment from Apple, but for Apple to roll-back its anti-competitive practices and allow for “fair competition.”
“To reach iOS users,” reads Epic’s filing, “Apple forces developers to agree to Apple’s unlawful terms contained in its Developer Agreement and to comply with Apple’s App Store Review Guidelines, including the requirement iOS developers distribute their apps through the App Store. These contractual provision unlawfully foreclose the iOS App Distribution Market to competitors and maintain Apple’s monopoly.”
The filing argues that Apple, in charging a 30% fee to publishers, take 10x more than companies like “PayPal, Stripe, Square or Braintree, which typically charge payment processing rates of around 3%.”
Apple’s full reply, in which they said the App Store is an ecosystem that benefits developers and creates a level playing field, is below.
“Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users. As a result their Fortnite app has been removed from the store. Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services.
Epic has had apps on the App Store for a decade, and has benefited from the App Store ecosystem – including the tools, testing, and distribution Apple provides to all developers. Epic agreed to the App Store terms and guidelines freely and we’re glad they’ve built such a successful business on the App Store. The fact that their business interests now lead them to push for a special arrangement does not change the fact that these guidelines create a level playing field for all developers and make the store safe for all users. We will make every effort to work with Epic to resolve these violations so they can return Fortnite to the App Store.”
Wait, what does this have to do with George Orwell?
Along with the lawsuit, Epic also released a video parodying Apple’s famous 1984 ad. Apple’s ad, released back in late 1983, promoted the upcoming launch of the Macintosh, railing against then-entrenched brand IBM. Epic’s video says Apple has become the new Big Brother of industry — a hugely powerful and overbearing entity.
This is something that Epic expounds more aggressively in its suit. “Apple has become what it once railed against: The behemoth seeking to control markets, block competition, and stifle innovation. Apple is bigger, more powerful, more entrenched, and more pernicious than the monopolists of yesteryear. At a market cap of nearly $2 trillion, Apple’s size and reach far exceeds that of any technology monopolist in history.”
What about Google?
Epic is suing Google, too. Epic followed its lawsuit against Apple hours later with a similar one against Google. Its basis is the same as Apple’s: unlawfully anti-competitive practices related to app distribution, and app-related payments.
“Google acquired the Android mobile operating system more than a decade ago, promising repeatedly over time that Android would be the basis for an “open” ecosystem in which industry participants could freely innovate and compete without unnecessary restrictions,” the filing reads. “Since then, Google has deliberately and systematically closed the Android ecosystem to competition, breaking the promises it made. Google’s anti-competitive conduct has now been condemned by regulators the world over.”
The suit argues that Android forms an effective monopoly for phone makers, like Samsung, LG and Sony, who have no real alternative to Android for their devices. Having achieved this monopoly, Epic says, Google then restricts the ability of companies to distribute apps in a way that competes with the Play Store.
“Epic’s experience with one [phone maker], OnePlus, is illustrative,” the go well with reads. “Epic struck a cope with OnePlus to make Epic video games accessible on its phones by way of an Epic Video games app. The Epic Video games app would have allowed customers to seamlessly set up and replace Epic video games, together with Fortnite, with out obstacles imposed by Google’s Android OS. However Google compelled OnePlus to renege on the deal, citing Google’s “specific concern” about Epic being able to put in and replace cell video games whereas “bypassing the Google Play Retailer.”
Just like the Apple go well with, Epic says it does not need cost from Google. “As a substitute, Epic seeks injunctive reduction that will ship Google’s damaged promise: an open, aggressive Android ecosystem for all customers and trade members. Such injunctive reduction is sorely wanted.”
Previous to Epic submitting go well with towards Google, Google launched the next assertion on its determination to drag Fortnite from the Play Retailer,
“The open Android ecosystem lets builders distribute apps by way of a number of app shops. For recreation builders who select to make use of the Play Retailer, we’ve got constant insurance policies which might be truthful to builders and hold the shop secure for customers. Whereas Fortnite stays accessible on Android, we are able to not make it accessible on Play as a result of it violates our insurance policies. Nonetheless, we welcome the chance to proceed our discussions with Epic and convey Fortnite again to Google Play.”
What do different corporations suppose?
Epic is way from the primary to complain about anti-competitive practices from Google and Apple.
In 2018, Apple Music. In June, .for monopolistic habits, which included Google’s suite of apps, like Chrome and Gmail, coming preinstalled on all Android units. Spotify final 12 months claimed that Apple’s charging 30% for in-app purchases, akin to subscriptions to Spotify Premium, , on this case
Whereas the European Union has been extra energetic about regulating tech titans over the previous decade, the US is starting to scrutinize these large corporations in the identical means. In late July, Apple CEO Tim Cook sat in a Congressional listening to alongside Jeff Bezos, Sundar Pichai and Mark Zuckerberg, CEOs of Amazon, Google-owner Alphabet and Facebook respectively, in a historic antitrust listening to.
Talking to Congress, Prepare dinner rejected the concept that the App Retailer tilts favor in the best way of Apple’s personal apps.
“After starting with 500 apps, as we speak the App Retailer hosts greater than 1.7 million — solely 60 of that are Apple software program,” Prepare dinner mentioned. “Clearly, if Apple is a gatekeeper, what we’ve got accomplished is open the gate wider. We wish to get each app we are able to on the shop, not hold them off.”
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