Apple and Fortnite creator Epic Games await the final verdict of a California federal judge that can potentially change the way we download apps on our iPhones.
On August 13, 2020, one of the world’s most popular video games, Fortnite was deleted from the App Store after its maker Epic Games allegedly tried to outwit Apple’s business model. In response to the removal, the video game company filed an antitrust lawsuit against Apple and called the app store a “monopoly”.
What happened between Apple and Epic in the courtroom?
The three-week-long battle is finally coming to an end, as Apple & Epic Games await the final decision eagerly. So what exactly are Epic’s accusations & how did Tim Cook and his legal team defend Apple?
The Apple vs Epic Games case is quite a fascinating one because it has the potential to influence billions of iPhone owners. Epic’s main argument was that Apple App Store is basically a monopoly since that’s the only application market available for iOS users. They also argued that Tim Cook’s policies are unfair as they force developers into some not-so-fair business agreements which include, a 30% commission on in-app purchases sales.
Apple’s defense on the other hand is that there is cut-throat competition in the gaming market. People can opt for Nintendo Switch, Android phones, or buy Sony PlayStation.They believe their fee structure is not very different from other players when it comes to downloading and installing games. So if the judge rules against Apple, it could translate into major changes in their policies surrounding the App Store.
What is at stake here?
Whenever high-profile cases like these surface, we get a glance at how these giant tech companies operate and the money involved in them.
We learned, according to sources that in the time Fortnite was on the app store, it made Apple over $100 million dollars. That is just 30% of the gross and Epic took home the other 70%. This means Epic Games made big bucks through the iOS platform so that gives an idea of the magnitude of stakes here in terms of money. That’s not it though.
The lawsuit also opened a window into some of Apple’s business dealings. For example; we learned that the company considered giving a preferential deal to online streaming giant Netflix. There was an air of frustration when considering the deal. Initially, Apple tried to demote Netflix. Later, they changed their tactics and gave the online streaming service a slew of editorial control, and featured them in ways quite different from the rest of the apps.
We also came to know that Apple is quite concerned about the situation in Europe. EU Regulators have also accused the company of a monopoly regarding Apple Music.
Again, if the Epic comes out victorious, it could mean a lot of policy changes in the Apple App Store. This means users might be apple to install apps on their iPhones via other app markets. The interesting thing, however, is that even if Epic Games loses, it will be ab big blow to Apple’s brand image. Maybe that’s Epic’s strategy to give the trillion-dollar company a lesson. Who knows!
Guess we’ll have to wait for that one. InvoZone will keep you updated.