It looks like a Battle Royale is about to happen between tech giants Apple and Google and extremely popular game Fortnite. The publisher of this game, Epic Games, is attempting to challenge Apple’s main distribution system, the App Store.
Essentially, the issue is that Apple and Google demand a cut when players pay for in-game upgrades. This reduces the amount of money Epic gets from users with iOS and Android devices, unlike other gaming platforms.
On August 13, Epic Games announced the launch of a direct payment option which can be used by mobile players, which was cheaper than buying through the iOS app. Soon after the announcement, the game was stopped from being available to download via Apple’s App Stores.
After that, Epic Games filed a lawsuit in U.S. District Court in California. The company claims that Apple has set “unreasonable restraints” in handling in-app payments. Epic blames Apple for trying to control markets and block competition, as well as being a monopolist.
Despite other significant tech players like Spotify, Netflix, and Amazon also having issues with Apple’s 30% fee for revenue, this is the first legal challenge, according to analysts. They also note that it’s a big deal for Apple, as Epic Games have such a massive following.
The new payment system would enable mobile players to make transactions on Fortnite avoiding the App Store or Google Play. The idea is that mobile players get 20% discounts this way.
Google also removed the game a few hours later on Thursday.
The company’s position is that the open Android ecosystem with its consistent policies is fair to developers; the system is also necessary to keep the store safe for the users. Fortnite continues to be available on Android, but not on Play because it violates Google’s policies.
In response, Epic Games filed a similar suit against Google with the same accusations.
Epic also going after Google for monopolistic practices in regards to Android.
Examples belowhttps://t.co/BZbbVfRHdj pic.twitter.com/gieAGIMP39
— Daniel Ahmad (@ZhugeEX) August 14, 2020
Created in 2017, Fortnite is a game of a battle royale format in which 100 players fight to remain the last player on a remote island. Now the game has accumulated a tremendous following of about 350 million players; it’s available on various platforms.
Players usually purchase things like outfits or gear using the game currency, V-Bucks. Since Thursday, players could buy 1,000 V-Bucks for $7.99. The same amount bought through Apple’s App Store and Google Play, costs $9.99.
In their statement to USA TODAY, Apple confirmed that they’ve removed Fortnite because of violating the company’s guidelines.
According to the tech titan, the new feature was not reviewed and approved by them. Also, it was done deliberately to violate the App Store guidelines concerning in-app payments.
The game’s publisher later teased a new short called “Nineteen Eighty-Fortnite,” which is a parody of Apple’s classic “1984” ad.
In its complaint, Epic claims that it wants the court to stop Apple’s anti-competitive conduct.
Apple has stated that it will negotiate with Epic to try to bring Fortnite back to the App Store. The company stresses the necessity of creating “a level playing field” for all developers.
There have been issues of a similar sort. For example, in 2019, Netflix required subscribers to pay Netflix directly. Spotify canceled in-app purchases in 2016. They also filed an antitrust complaint in the European Union against Apple.
In a statement to USA TODAY, Spotify said that they applauded Epic Games’ decision to change the situation with Apple’s dominant position and unfair practices.
The action starts in two weeks when the CEO of Apple Tim Cook and the CEOs of some other tech giants such as Alphabet, Amazon, and Facebook, will have to appear before a House Judiciary subcommittee because of the hearings about potential antitrust regulation.
In given circumstances, if Epic and Fortnite win, this could lead to unforeseen consequences for lots of other players in this sphere.
