The Fortnite developers (Epic Games) have filed a lawsuit against Apple and Google accusing them of unlawful, unfair and anti-competitive actions through its App Store policies. This happened a few hours before Apple pulled Fortnite from the App store.
Why is this happening? The plot is simple: Epic Games updated Fortnite to include a payment method that bypassed the usual platform fees taken out of the in-app purchases. Apple fired back by pulling Fortnite from the App Store, claiming that the payment scheme and update disrupted its App Store Guidelines.
The case for Google is slightly different, since Google does not have a tight grip on Android as Apple on iOS, however Epic is asking the court to “end Google’s unlawful monopolization and anti-competitive restraints by eliminating competition in the distribution of Android apps using myriad contractual and technical barriers”, even though Google does allow other developers to host their own storefronts on Android, but Epic still claims that the fact that Android is an open platform is false.
The reasoning behind the lawsuit against Apple then is to “end Apple’s unfair and anti-competitive actions that Apple undertakes to unlawfully maintain its monopoly” both on the iOS platform where the App Store is the only sanctioned app distribution option, and in the iOS payment processing market that locks developers into funneling payments through Apple and forfeiting 30% of revenue in the process.
However, Epic stated that this lawsuit isn’t strictly a retaliation for the removal of Fortnite on the App Store page. On the contrary, the removal of Fortnite is the catalyst that Epic is using to challenge the principles of Apple’s tight control of its iOS ecosystem.
The lawsuit against Google also stated that Google’s actions force app developers and consumers into Google’s own monopolized app store -Google Play Store-, therefore Google has installed itself as an unavoidable middleman for app developers who wish to reach Android users.
According to their lawsuit, Epic is not seeking monetary compensation or a favorable treatment for itself. Instead, Epic is seeking injunctive relief to allow fair competition in these two markets (iOS & Android).
Epic is taking aim at Apple’s App Store policies by establishing that it’s an anti-competitive attitude that harms developers and competition, denying developers the ability to choose storefronts or payment processing options and forcing them to pay a 30% revenue to reach iOS users.
Epic Games also wants the iOS operating system to allow third-party stores without a 30% revenue tax, since it would allow Fortnite or any other game to reach billions of users worldwide without the increased pay barrier. Tim Sweeny (Epic Games CEO), said they even tried to reach Apple to negotiate with them privately, however that was futile as Apple has said that what Epic wants is non-negotiable.
They key to understating Epic Games arguments relies that more competition would benefit mobile users and developers alike, since in both lawsuits Epic paints its attacks as altruistic rather than moves made out of its own self-interest or pursuit of higher profits. However, it is widely known that Epic Games has plans to improve and position its Epic Game Store (exactly the same as the App Store or Google Play Store, but for videogames, for now) in the market as a leading platform, which at the moment it cannot compete with the massive power of Google and Apple combined. The real question to be asked here is: ¿Is it really an altruistic move on behalf of Epic Games or rather a legal loophole to achieve what it wants, an equal footing as first-party offerings and reap the financial benefits of its own?
The end result of this is yet to be determined, however for existing Fortnite users on iOS won’t be able to receive future game updates (they can still use and purchase currency) and new players won’t be able to download the game at all. As for Android players, at the writing of this article, you can still download or update Fortnite.
