Epic Games launches court action against Fortnite over banning Apple products
13 August 2020
Apple has taken down Fortnite (from its App Store) which has prevented players from installing the game extremely popular on their iPhones.
It was in response to Fortnite's update that allowed players to buy in-game currency at lower rates by purchasing directly from 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 takes a standard 30 percent share of its sales from its compulsory payment system.
Google removed the app from their Google Play Store hours later, however it's still accessible on Android phones through other methods such as Epic Games' launcher.
The App Store is the only legal method to legally install apps on iOS. But Apple stated that Epic had taken the "unfortunate step of violating App Store guidelines".
These guidelines prohibit any other payment system other than Apple's and have been the subject of many high-profile 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. They'll lose some features following this.
The users of an Apple Mac computer will not be affected, since that version does not use the iOS App Store.
Epic tweeted the California court complaint and announced that it would soon show a short film titled Nineteen Eighty-Fortnite. This is a play on George Orwell’s novel Nineteen Eighty-Four.
The novel is about a dystopian world that is ruled by its citizens and tolerates no opposition - and was referenced by Apple in a well-known television commercial in 1984, when the young company claimed to be competing with the then dominant IBM."
According to court documents, Apple has a monopoly on deciding which apps can be downloaded on iPhones and also on requesting its own payment system. This is a 30% cut.
Piers Harding-Rolls is the director of research for games at Ampere Analysis. He said that Epic's breach of rules was done to make it more difficult for Apple to remove the app.
"Removing Fortnite from the App Store helps to deliver a groundswell of support for Epic which is something that it is trying to get to."
He also stated that iPhones aren't the most popular Fortnite game's platform, but Epic will not be able to ignore the ban. However, Epic stated that the iOS version "generates thousands to millions of dollars in revenue each month on Apple platforms".
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Developers really do not like this cost. For many people, a 30 percent portion of profits is similar to shakedowns.
Last month, an app developer likened Apple to the mafia. This criticism is fundamentally anti-competition.
Google and Apple control the operating systems used on nearly all mobile phones in the world. This means they have the ability to decide who can run apps on their stores, and who won't.
They also have the option of setting the charges. Some developers call this duopoly.
In Epic Games though, Apple has a rival that isn't wanted.
Fortnite is extremely profitable, Epic Games has the cash to spend Apple on. The way it has been carried out - passing the savings on the consumers - is clearly strategic. Epic Games wants to take this fight into the wide world.
This attention is vital for Apple, as the EU and the US Congress are closely monitoring its business practices.
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In its court filing, Epic said it was not seeking financial compensation.
"Epic is seeking injunctive relief in order to allow fair competition in these two important markets that directly impact hundreds of millions of consumers and tens of thousands, or more of third-party app developers," it said.
The documents also hint at a larger goal.
"But for Apple's illegal restraints, Epic would provide a rival app store on iOS devices," it says.
Epic Games launched its Epic Games Store to change the PC gaming industry. It's goal is to draw gamers away from Steam by offering free games that are well-loved and highly reviewed.
Piers Harding-Rolls said the row is reminiscent of the previous battle - Epic's store charges game developers 12% for PC games, as opposed to Steam's 30%.
"Apple and Google have been the long-term targets of Epic CEO Tim Sweeney's fury, as he believes the 30 percent revenue share they pay for app sales and in-game monetisation is too high," he said.
"However, taking down Apple is a different task that you face in the PC market, as it's not possible for third-party storesfronts built on iOS or to make money from apps outside of the App Store."
Google's Android system also makes use of Google's payment system to pay for purchase from the app store, from which Google takes a cut - but Android lets developers point users to alternative payment options.
In a statement, Apple said the rules were equally applied to all developer, and it was claimed that Epic had updated their game "with the express intent of breaking the App Store guidelines".
"Epic has been a part of the App Store for the past decade, and has benefited from the App Store ecosystem," it said.
"The fact that their business interests now have them pushing for a specific arrangement does not change the fact that these rules create a level playing field for all developers and ensure the store's security for all users."
It also said it would try to work with Epic to bring Fortnite back.
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