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Updated 09/08/20: Apple’s latest court filing seeks damages from Epic Games and makes “unjust enrichment” and “unlawful interference” counterclaims between Apple and its customers.
The Latest: Apple Files Counterclaims
Prior to the first court hearing on September 28, Apple filed counterclaims against Epic Games. Apple alleges “unfair enrichment” and claims that Epic intended to interfere with Apple’s relationship with its customers. To that end, Apple seeks punitive damages from Epic Games.
The presentation sings essentially the same song that Apple has sung since it all began: Apple’s App Store is a tremendous gift to customers and developers that Apple spends a lot of money on, so how dare Epic take advantage of tools and technologies? so wonderful and then cry badly.
Epic will likely respond with the same line of argument it has used since the lawsuit was filed last month: that the issue is not the quality of Apple’s App Store or associated tools, but the mandatory nature of them and their tools. associated trade agreements. Developers have no choice but to get involved if they hope to reach a billion users of what are now general computing devices.
On September 4, Epic had filed a formal request for a preliminary injunction for Apple to reinstate Fortnite while the two companies fight in court (this was a longer, more formal version of the previously requested emergency injunction).
Epic has until September 18 to submit a response. The first hearing is scheduled for September 28, 2020.
Original story
Fortnite may not be burning down the App Store charts the way it used to, but it’s still one of the most popular games of all time, with tens of millions of players. We don’t know how many of them play on mobile devices, but Epic Games (the creator of Fortnite) is willing to stake that entire market to challenge Apple and Google’s app store rules on an escalation of an ongoing antitrust battle throughout. the industry.
If you don’t know, Fortnite allows players to buy in-game stuff (outfits, dance moves, that kind of thing) with a virtual currency called V-bucks. It is similar to gems, diamonds, energy, and other virtual currencies that are used in many other free or mobile games.
Epic Games just announced that V-bucks cost 20 percent less than they used to. If you’re playing on PC, Mac, or console, boom, the price is cheaper, period.
However, if you play on iOS or Android, it is a bit more complicated. When you go to buy V-coins, now you are presented options. If you choose to buy through the App Store or Google Play Store, pay the above price. Epic has added a new “direct payment from Epic” option, which uses the payment information attached to your Epic account (or allows you to enter new payment information) and gives you the 20 percent discount.
Epic Games is pretty straightforward in their explanation of why the price is higher for those who shop through the App Store:
Currently, when using the Apple and Google payment options, Apple and Google charge a 30% fee and the price drop of up to 20% does not apply. If Apple or Google lower your payment fees in the future, Epic will pass the savings over to you.
A deliberate and direct violation
This is, of course, a direct violation of Apple’s app store rules. Section 3.1.1 of the App Store Review Guidelines spells it out: if you sell something in your app or offer some kind of unlocked functionality, should use payment processing in the Apple app exclusively. The Google Play store works in a similar way, although it is possible to download and run Fortnite on an Android device directly or, on Samsung devices, through the Samsung application store.
Is this a privacy and security issue related to protecting your payment information? Definitely not. Apple allows applications that sell physical, real-world goods and services to use their own payment processing. So apps from Starbucks to Amazon to Uber and more can have their own payment systems in place and collect and store your payment information. Apple’s rule only applies to digital content, and even then it has exceptions for a particular class of apps that it calls “reader” apps (like Kindle and Netflix). Hundreds of millions of iPhone and iPad users regularly use applications that include their own payment processing.
Fortnite’s flagrant violation of the App Store rules is no accident. Epic Games CEO Tim Sweeney has openly criticized Apple’s policies and rules on iOS, recently telling CNBC, “Apple has blocked and paralyzed the ecosystem by inventing an absolute monopoly on software distribution, on monetization of the software “.
Epic Games is deliberately provoking Apple and Google, just when companies are in a bind from antitrust allegations, both in the United States and around the world. The company faces several antitrust investigations in the European Union, for example. Apple was recently criticized for blocking distribution of both Microsoft’s xCloud gaming service and Facebook Gaming’s live gaming features.
Take out the popcorn
Epic Games has removed its glove and slapped Apple in the face. Both Google and Apple are required to remove the application from their application stores, or open the floodgates to all kinds of applications that sell digital products with their own payment processing, just as sellers of physical goods and services do.
This would completely eliminate one of the most popular games in the world with tens of millions of fans of iPhones and iPads. Those with Android phones could still play by downloading the game directly from Epic, an option that Apple users don’t have.
When Apple inevitably removes Fortnite from the App Store, it will add fuel to the fire of Apple’s current antitrust problems. It will serve as another great example to drag before regulatory bodies and courts; a great demonstration of how Apple’s rules and policies hurt not only the companies that would compete with it, but also customers.
Apple launches Fortnite from the App Store
Unsurprisingly (some would say encouraged), Apple kicked Fortnite off the App Store a few hours after our initial story. He released the following statement to The Verge:
Today, Epic Games took the unfortunate step of violating the App Store guidelines that apply equally to all developers and are designed to keep the store safe for our users. As a result, your Fortnite app has been removed from the store. Epic enabled a feature in their app that was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to all developers selling goods. or digital services.
Epic has had apps on the App Store for a decade and has benefited from the App Store ecosystem, including the tools, testing, and distribution that Apple provides to all developers. Epic freely accepted the terms and guidelines of the App Store and we are glad that they have built such a successful business on the App Store. The fact that their business interests now lead them to push for a special fix does not change the fact that these guidelines create a level playing field for all developers and make the store safe for all users. We will do our best to work with Epic to resolve these violations so that they can return Fortnite to the App Store.
As we noted in our initial post on this article, Epic Games’ actions seemed designed to elicit this exact response. Apple’s response pulls out the same bullshit we always hear: that app store rules apply equally (only technically true, since the rules themselves designate classes of applications to which different rules apply), which are designed to protect users (certainly difficult to argue when so many popular applications can include their own payment – how is that more safe just because you sell physical goods?), and that the real beneficiary of the App Store has been Epic Games (ignoring Apple’s benefit of having popular apps on their phones).
It also sets up a particular straw man argument: that Epic Games wants special treatment. In fact, Epic Games has made it very clear that they want the opposite: they want a rule change for everyone.
Epic Games opens the trap
Lest anyone doubt that this entire move was a deliberate provocation by Epic Games to set up Apple, the company announced the reveal of an in-game animated short film “Nineteen Eighty-Fortnite” reminiscent of Apple’s landmark 1984 announcement for the Macintosh. To say that the company expected its game to be removed from the App Store is an understatement.
@FortniteGames Epic Games is trying to paint Apple as the new IBM, the “Big Brother” controller that Apple was overthrowing in its 1984 Macintosh ad.
It’s not just a public relations stunt, either. Epic Games has filed an injunction lawsuit (PDF link) in the Northern District of California, alleging 10 violations of the Sherman Act and California law.
August 17 Epic Games tweeted that the situation has escalated: “Apple removed Fortnite from the App Store and informed Epic that on Friday, August 28, Apple will terminate all of our developer accounts and cut Epic from the iOS and Mac development tools. court to stop this retaliation. “
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