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Epic Games: Fortnite: Apple Ban Sparks Court Action

Epic Games launches court action against Fortnite over banning Apple products



13 August 2020



Apple has removed Fortnite from its App Store, stopping players from installing one the most played games in the world on iPhones.



It was released following an Fortnite update that let players buy in-game currency at a lower price when they purchased directly from the creator Epic Games - bypassing Apple.



Epic appeared to know the ban would come, announcing it that it had filed a legal complaint within minutes of the removal.



Apple uses a standard 30 percent cut of its sales from its payment system that is mandatory.



Hours later, Google also appeared to remove the app from its Google Play Store - though it's still accessible on Android phones via other methods including Epic Games' own launcher.



On iOS, the App Store is the only way to legitimately load apps. Apple said Epic had violated the App Store guidelines.



These guidelines prohibit any payment system apart from Apple's own. It has been the subject of several high-profile rows between developers and Apple.



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'll lose some features following that.



Those on 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 film titled Nineteen Eighty-Fortnite. It is a play on George Orwell's novel Nineteen Eighty-Four.



The novel is about a dystopian society that controls its citizens and stifles opposition - and was referenced by Apple in a famous television advertisement in 1984, when the new company portrayed itself as taking on the dominant IBM."



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



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



"Removing Fortnite is a great way to increase the support of Epic and what it is trying to achieve."



He also said that iPhones aren't the best Fortnite game's platform, but Epic will not be able to ignore its ban and the iOS version "generates thousands of millions of dollars in revenue each month on Apple platforms", he said.



Clash of titans



Developers really, really don't like this kind of charge. A 30% cut in profits is viewed as a shakedown by many developers.



One app developer compared Apple to the mafia in the last month. This is a fundamentally anti-competition argument.
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Google and Apple control the operating systems that run on almost all phones around the globe. This means that they are able to choose who can run apps in their stores and which cannot.



They can also set the fees. Some developers call this duopoly.



In Epic Games though, Apple has a rival that isn't wanted.



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



This attention is vital for Apple, as the EU as well as the US Congress are closely monitoring its business practices.



Epic stated in a court document that it was not seeking financial compensation.



"Epic is seeking injunctive relief in order to allow fair competition in these two important markets that directly affect hundreds of millions of users and tens of thousands, if not more, of third-party app developers," it said.



These documents also hint at a larger purpose.



"But in the event of Apple's illegal restrictions, Epic would provide a alternative app store for iOS devices," it says.



Epic Games has already attempted to disrupt the PC gaming market through the launch of its Epic Games Store, taking advantage of the dominant player, Steam, in an attempt to entice players away with free games which are often popular, top-rated titles.



Piers Harding-Rolls said the row is reminiscent the previous battle - Epic's store charges game developers 12% for PC games, as compared to Steam's 30 percent.



He said that Apple and Google were the long-term targets of Epic CEO Tim Sweeney's ire as he believes that the 30 percent revenue share they charge for in-game monetisation as well as app sales is too high.



"However it is true that the challenge of taking on Apple is a different challenge than the PC market as it's impossible to build a storefront for third parties on iOS, or monetise apps outside of the App Store."



Google's Android system uses Google's payment system to buy apps. Google takes a cut however Android allows developers and users to link to other payment options.



Apple stated in a statement that the rules were applied equally to all developers and that Epic had changed their game "with the explicit intention of violating the App store's guidelines".



"Epic has been a part of the App Store for a decade and has benefited from the App Store ecosystem," it said.



"The fact that their business interests now lead them to push for a specific arrangement doesn't change the fact that these rules create a level playing field for all developers and ensure the store's security for all users."



It added that it would try to work with Epic to bring Fortnite back.



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