Fortnite: Apple Ban Sparks Court Action From Epic Games

Fortnite: Apple ban sparks court action from Epic Games

13 August 2020

Apple has removed Fortnite (from its App Store) which has prevented users from installing the game extremely popular on their iPhones.

It was announced following a Fortnite update that let players purchase currency in the game at a lower cost if they bought direct from maker Epic Games - bypassing Apple.

Epic seemed to be aware that the ban was coming and announced it that it had filed a legal complaint just minutes after the removal.

Apple uses a standard 30 percent cut of its sales made through its mandatory payment system.

Google removed the application from their Google Play Store several hours later, but it is still available on Android phones via other ways like Epic Games' launcher.

The App Store is the only legal way to legally install apps on iOS. Apple declared that Epic had violated App Store's 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 said that iPhone players already having the app installed should be able to continue playing until the next update comes out. After that, they will lose some features.

Users with an Apple Mac computer will not be affected, since this version doesn't use the iOS App Store.

Epic tweeted the California court complaint and announced that it would soon screen a short film called Nineteen Eighty-Fortnite. This is a play on George Orwell’s novel Nineteen Eighty-Four.
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The novel portrays a dystopian society where citizens are controlled and tolerate no opposition. Apple also referenced the novel in an ad on television from 1984 when it claimed to be taking on IBM.

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

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

"Removing Fortnite is a great way to build support for Epic and what it is trying to do."

He added that iPhones aren't the most popular Fortnite game's platform, but Epic will not be able to ignore its absence - the iOS version "generates hundreds of millions of dollars in revenue every month on Apple platforms", he added.

Clash of titans

This cost is not well-liked by developers. A 30% cut in profits is considered a slap in the face by many developers.

One app developer One app developer compared Apple to the mafia in the last month. This is a fundamentally anti-competition stance.

Google and Apple control the operating systems that run on almost all phones around the globe. This means that they can select which apps can be run in their stores and who can't.

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

Epic Games however, has an unwelcome enemy: Apple.

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

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

Epic declared in a court filing that it was not seeking financial compensation.

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

The documents also hint at a bigger purpose.

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

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 games for free, which have often been 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 ire because he believes that the 30 percent revenue share they charge for in-game monetization and app sales is too high.

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

Google's Android system also makes use of the payment system of Google for purchase from the app store and from which Google gets a cut - but Android allows developers to direct users to alternative payment options.

Apple stated in an announcement that the rules were equally applied to all developers and that Epic had modified their game "with the explicit intention of breaking the App store guidelines".

It said that Epic has been using the App Store for over 10 years and has benefited from the App Marketplace.

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

It also said it would attempt to collaborate with Epic to bring Fortnite back.

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