Apple and Google have not commented on the Epic Games lawsuit. But they both pointed out that their guidelines are aimed at all developers, to “keep the store safe” from security risks.
“Epic blew it up with its big PR campaign yesterday with videos ready to go and all,” John Bergmayer, legal director of consumer law firm Public Knowledge, told CNN Business on Friday. “They hired Apple and Google to take their apps out of the store.”
The complaints each ran on 60 pages, and Epic has representation of big names; one of her lawyers ran the Justice Department’s anti-trust division during the Obama administration.
“Epic preservation of Christine Varney is significant,” said Sandeep Vaheesan, legal director of the Open Markets Institute. “It shows that Epic is serious about this suit.”
The company is asking the court to end Apple and Google’s all anti-competitive behavior. It does not require any damage.
Here are the problems while playing and what’s on the point.
How app stores work
Their app stores are offering a 30% discount for in-app purchases. Developers say the fee is too high and voice growth. Apple does not allow outside apps to download to its devices, and with no company allowing developers in their app stores to overhaul their payment systems.
While Google allowed to download apps outside to Android devices, Epic has complained about that go outside of Google approved process has been banished with security pop-ups and other software restrictions. Epic originally introduced Fortnite outside the Google Play Store, but after 18 months it launched the game there in April.
Is Apple like Google a monopoly?
In antitrust cases, perhaps the most crucial element in determining what the market is, the better it is to show harm to the competition. It’s in Epic’s favor define the market as narrowly as possible, while Apple and Google will push for a broader interpretation.
Claiming that Apple monopolizes the distribution and purchase of iOS apps, “Epic Games” will have to convince the judge that these are brands to begin with, “John Bergmayer, legal director of consumer law group Public Knowledge, told CNN Business.
For its part, Epic Games claims that since Apple controls one billion devices, there is no other way to reach these consumers.
Apple could also claim that it pays the 30% fee for in-app purchases for running the App Store and checking apps to make sure they are not security risks, said Jeffrey Blumenfeld, a partner at Lowenstein Sandler.
“I have a very hard time believing that the outcome of this lawsuit is that the court says Apple is not allowed to control distribution of apps through its own App Store,” Blumenfeld said. For the court to decide otherwise, it would have to “pretty strongly convince” that consumers could be better in the long run, he said.
Potential outcomes
If Epic wins, Apple and Google could be tasked with allowing developers to sell in-app purchases without giving the tech giants a cut, Vaheesan said. The court could also rule that Apple and Google are prohibited from bundling payment services with their app stores, allowing developers to be paid directly.
Alternatively, Apple and Google could simply settle with Epic and quietly change their policies.
If Epic loses, Bergmayer, the legal director for Public Knowledge, said, “at least that marks what the boundaries of the anti-trust law are at the moment so people who want to change can look to other avenues.” For example, they could ask Congress to pass new anti-trust laws.
The case could take years, several lawyers told CNN Business. The 1974 anti-trust case against AT&T, for example, took eight years to litigate and ended with the division of the company into multiple companies. (AT&T is the parent of Warner Media, which owns CNN.)
“I think [Epic winning the lawsuits] would be very good for the markets in general, “said Mitch Stoltz, attorney for senior staff at the non-profit digital rights group Electronic Frontier. You would see more experiments, you would see more business models. You would see more innovation. ”
Correction: An earlier version of this story misrepresented the policies of Apple and Google about how customers can download apps on their devices.
CNN’s Brian Fung contributed to this report.
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