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Fortnite: Apple Ban Sparks Court Action From Epic Games

Fortnite: Apple ban sparks court action from Epic Games



13 August 2020



Apple has taken down Fortnite (from its App Store) and has stopped users from installing the game so well-known around the world on their iPhones.



It came after a Fortnite update that let players purchase currency in the game at a lower rate by purchasing directly from the creator Epic Games - bypassing Apple.



Epic seemed to be aware of the ban and announced that it had filed a complaint within a matter of minutes.



Apple uses a standard 30% share of sales from its compulsory payments system.



Google removed the app from their Google Play Store hours later, however it's still accessible on Android phones through other methods, like Epic Games' launcher.



On iOS on iOS, the App Store is the only way to legitimately load apps. But Apple declared that Epic had taken the "unfortunate step of not following the App Store guidelines".



These guidelines ban any other payment method than Apple's and have been the subject of a number of high-profile disputes between Apple and developers.



Epic stated that iPhone users who have the app installed will be able to continue using the app until the next update is released. They will lose some features after this.



Users with an Apple Mac computer will not be affected since that version does not use the iOS App Store.



Epic tweeted the California court filing and announced that it was going to show a short movie called Nineteen Eighty-Fortnite. It is a play on George Orwell’s novel Nineteen Eighty-Four.



The novel is about a dystopian world that controls its citizens and tolerates no opposition - and was referenced by Apple in a well-known television ad in the year 1984, when the new company portrayed itself as competing with the then dominant IBM."



According to court documents, Apple has a monopoly in deciding what apps can be downloaded on iPhones and also on requesting its own payment system. This is done with a 30 percent cut.



Piers Harding-Rolls, games research director at Ampere Analysis, said Epic's update that broke the rules "was made to cause Apple remove the application".



"Removing Fortnite is a great way to increase the base of support for Epic and what it is trying to do."
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And he added that iPhones aren't the best platform for Fortnite however Epic will not be able to ignore its absence as the iOS version "generates tens of millions of dollars in revenue every month on Apple platforms", he added.



Clash of titans



This is not a popular option by developers. A 30% reduction in profits is considered a shakedown by many developers.



One app developer One app developer compared Apple to the mafia last month. The argument is essentially an anti-competition argument.



Apple and Google run the operating systems for almost all phones in the world. This means that they are able to choose who can run apps in their stores and which can't.



They also decide on the fees. This is duopoly, say some developers.



Epic Games however, has an unwelcome adversary: Apple.



Fortnite is insanely profitable. Epic Games has the money to pay Apple. The way it has been carried out by passing the savings on to the consumer - is clearly a tactic. Epic Games wants to bring this battle out in the open.



This is a crucial aspect for Apple as both the EU and US Congress are closely monitoring its business practices.



Epic declared in a court filing that it did not seek financial compensation.



It was stated that Epic is seeking injunctive relief to allow fair competition in two important markets that directly impact hundreds of millions of consumers and thousands or even thousands of third-party apps developers.



The documents also hint at a possible larger goal.



It says that Epic will launch a rival app store for iOS devices that would be able to bypass Apple's illegal restrictions.



Epic Games has already attempted to disrupt the PC gaming market through the launch of its Epic Games Store, taking on the leading player, Steam, in an attempt to lure gamers away with free games, which are often highly rated, popular games.



Piers Harding-Rolls said the row is reminiscent of that challenge - Epic's store charges game developers 12% for PC games, as opposed to Steam's 30%.



He claimed that Apple and Google were a long-term target of Epic CEO Tim Sweeney's anger as he believes that the 30 percent revenue share they charge for in-game monetization and app sales is excessive.



"However it is true that going after Apple is a different challenge than in the PC market as it's impossible to create a third-party storefront on iOS, or monetise apps outside of the App Store."



Google's Android system utilizes Google's payment system to purchase apps. Google takes a cut however Android lets developers and users to link to other payment options.



In a statement, Apple said the rules were applied equally to all developer and they claimed that Epic had modified their game "with the explicit intention of violating the App Store guidelines".



"Epic has had apps on the App Store for over a decade, and has gained from the App Store ecosystem," it said.



"The fact that their business interests now lead them to push for a specific arrangement does not alter the fact that these guidelines ensure a fair playing field for all developers and ensure the store's security for all users."



It also said that Epic will be working with them to bring Fortnite back.



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