Epic Games Sues Apple in Court Due to App Store’s Excessive Cuts
Epic Games’ CEO testified on Monday that he knew he was violating Apple Inc.’s (AAPL.O) App Store rules by integrating Epic’s own in-app payment system into Fortnite last year.
However, they still did so to demonstrate Apple’s sway over the world’s 1 billion iPhone users.
Apple and Epic Games’ Court Battle
Epic Games Inc., the maker of “Fortnite,” intentionally broke Apple Inc.’s app marketplace rules to demonstrate Apple’s dominance.
This was also done to show that the tech giant takes an unfair cut from software developers, according to the CEO’s testimony in a trial on Monday.
According to Tim Sweeney, the company’s global success “Fortnite” was removed from Apple’s mobile app platform last August.
This is because Apple made more money from selling developer apps in the App Store than the developers.
This year, Apple’s stock reached new highs, but the company’s long-running feuds with software developers are spilling into the open.
The Wall Street Journal discusses why high-profile companies such as Epic Games, Spotify, and Tinder are breaking App Store laws.
As Epic predicted, both companies — Apple and Alphabet Inc. — removed the action-fighting game from their app stores, leading it to file lawsuits against them and begin a public-relations campaign criticizing Apple to gain support from customers and other app developers.
Epic’s lawsuit against Google has yet to be scheduled for a trial date.
Epic Games’ Side
Mr. Sweeney had been planning this for months. In August, his closely owned company introduced its own illegal payment scheme into versions of “Fortnite” on Apple and Alphabet Inc.’s GOOG Google-controlled app stores to avoid the 30 percent charge the companies receive from in-app purchases.
Mr. Sweeney, a 50-year-old programmer who created Epic in 1991, made his remarks in a courtroom on the first day of a three-week bench trial that could help reshape the multibillion-dollar market for mobile app distribution.
The developer affirms that Apple’s monopoly on the App is anti-competitive, as app developers have very little control over where their apps are placed.
Furthermore, the company asserts that developers should not be required to pay Apple or Google large sums of money to create apps for smartphones.
Nevertheless, when Epic Games attempted to sell Fortnite exclusively through the Google Play store, the company asserted that not enough people had access to it.
Mr. Sweeney testified for about three hours, answering questions from various trial members, including Epic attorney Katherine Forrest, Apple lawyer Richard Doren, and the case’s judge, U.S. District Judge Yvonne Gonzalez Rogers.
Apple claims it can charge whatever it likes because it is a private corporation that pioneered the App Store and that its fees are reasonable and follow industry standards.
It claims that only large corporations pay a 30% commission, but most developers pay far less.
Meanwhile, Democratic and Republican lawmakers seem to share a common distrust of Apple’s business practices.
According to CNET, the case raises questions about how digital technology firms operate and may draw more attention from lawmakers who are already investigating big tech companies’ business practices.
According to the BBC, the trial will last until the end of May. If Epic Games wins, the App Store and the developers that create applications for it will undergo significant changes.
However, it remains to be seen how customers will be impacted. If Epic Games wins the case, there’s no guarantee that the savings will be passed on to app users. If in-app purchases aren’t bringing in enough money, Apple can look for other ways to make money.
Editor’s Note on Epic Games Vs. Apple Over App Store’s Commission:
This article is published to inform you of the latest news in the trial between Epic Games and Apple.
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