Notes

Epic Games: Fortnite: Apple Ban Sparks Court Action

Fortnite: Apple ban sparks court action from Epic Games



13 August 2020



Apple has removed Fortnite (from its App Store), preventing players from installing the game that is extremely popular on their iPhones.



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



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



Apple has a standard 30% share of sales from its compulsory payment system.



Google removed the app from their Google Play Store just hours later, however it's still available on Android phones via other ways such as Epic Games' launcher.



The App Store is the only way to legally load apps onto iOS. But Apple declared that Epic had taken the "unfortunate step of not following the App Store's guidelines".



These guidelines ban any other payment method than Apple's and have been the subject of numerous prominent disputes between Apple and developers.



Epic said any iPhone players already having the app installed should be able to play until the next update rolls out. After that, they will be unable to access certain features.



Users who use an Apple Mac computer won't be affected since they don't use the iOS App Store.



In addition, to tweeting the legal complaint that it filed in the California court, Epic also announced the scheduled in-game presentation of a short film called Nineteen Eighty-Fortnite , an adaptation of George Orwell's novel Nineteen Eighty-Four.



The novel depicts an unimaginative society in which citizens are controlled and allow any form of discord. Apple also referenced the novel in an ad on television from 1984 , claiming to be fighting IBM.



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



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



"Removing Fortnite is a great method to gain the base of support for Epic, which it is trying to achieve."



He also stated that iPhones aren't the biggest platform for Fortnite , but Epic will still be aware of the ban. However, Epic stated that the iOS version "generates tens to millions of dollars in revenue every month on Apple platforms".



Clash of titans



This is not a popular option by developers. For many, a 30% portion of profits is similar to a shakedown.



Last month, one app developer compared Apple to the mafia. The criticism is basically an anti-competition argument.



Google and Apple control the operating systems used on nearly all phones across the globe. This means that they are able to decide who can run apps on their stores and who can't.



They can also set the fees. This is duopoly, say some developers.



Epic Games however, has an unwelcome adversary: Apple.
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Fortnite is insanely profitable, Epic Games has the money to spend Apple on. The way it's been carried out, passing on savings to the consumer, is clearly a tactic. Epic Games wants to take this fight out into the wide world.



And with the EU and US Congress looking closely at Apple's business practices, this is attention the company could do without.



In its court filing, Epic said it was not seeking financial compensation.



"Epic is seeking injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, or more, of third-party app developers," it said.



The documents also hint at a possible larger objective.



It says that Epic will launch a rival app store for iOS devices to Apple's illegal restraints.



Epic Games has already attempted to disrupt the PC gaming market by launching its Epic Games Store, taking on the dominant player, Steam, in an attempt to lure gamers away with free games, which have often been popular, top-rated titles.



Piers Harding-Rolls stated that the row is reminiscent of the same challenge - Epic charges game developers 12% for PC games, whereas Steam charges 30 percent.



He claimed that Apple and Google were the long-term targets of Epic CEO Tim Sweeney's anger because he believes that the 30% revenue share they charge for in-game monetization and app sales is too high.



"However taking down Apple is a completely different challenge that in the PC market, as it's not possible for third-party storesfronts built on iOS or to make money from apps beyond the App Store."



Google's Android system also makes use of Google's payment system for purchase from the app store, from which Google takes a cut however Android allows developers to direct users to other payment options.



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



It stated that Epic has been using the App Store for more than 10 years and has benefited from the App Marketplace ecosystem.



"The fact that their business interests lead them to push for a specific arrangement doesn't change the fact that these rules ensure a fair playing field for all developers and ensure that the store is safe for all users."



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



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