Apple strikes back at Epic Games for breach of contract over Fortnite dispute



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Apple is seeking damages from Epic for the company’s decision to evade App Store guidelines by offering its own in-app payment system.

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Image: Epic Games

Apple has fired the next salvo in its ongoing legal battle with Epic Games. On Tuesday, the iPhone maker launched a countersuit against Epic, accusing the game’s maker of breach of contract after it attempted to sell V-Bucks for in-app purchases for Fortnite directly to customers. That move was designed to circumvent the 30% fee that Apple normally charges for App Store purchases, a tactic Apple considers a violation of App Store guidelines.

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In its lawsuit, Apple seeks an unspecified amount in damages, as well as lost fees from the App Store, specifically any money Epic has raised through its in-app payment system. Apple is also asking the court to issue a permanent injunction against Epic’s in-app purchasing system.

“The Epic lawsuit is nothing more than a basic disagreement over money,” Apple claimed in its lawsuit. “Although Epic presents itself as a modern corporate Robin Hood, it is actually a multi-billion dollar company that just doesn’t want to pay anything for the tremendous value it gets from the App Store. Epic’s demands for a deal special and cries of ‘retaliation’ cannot be reconciled to his blatant breach of contract and his own business practices, as he raises billions by collecting commissions on sales from game developers and charging consumers up to $ 99.99 per packages of ‘V-Bucks’ “.

The showdown began in August after both Apple and Google kicked Fortnite out of their respective app stores following Epic’s launch of its direct in-app purchase system. Epic then quickly filed lawsuits against both companies, but the main disputes since then have been between Epic and Apple.

As the fighting escalated, Apple had promised not only to ban Fortnite, but also to suspend Epic’s development program for its Unreal Engine, a gaming platform used by a large number of developers. In ruling on the matter in late August, US District Judge Yvonne González Rogers ruled against Epic on the Fortnite ban, stating that the ban was an issue created by Epic and that any injuries that Suffer is your choice.

But the judge ruled in favor of Epic in the Unreal Engine affair, determining that any ban on this platform would harm developers, players, and the gaming industry in general. However, these rulings are temporary, as both companies prepare their responses for a day in court.

In its lawsuit, Apple said Epic CEO Tim Sweeney had initially requested a “supplemental letter” that would release the company from its current contractual obligations, including the App Store Review Guidelines. The lawsuit also contends that Epic wanted a “full final enforcement of Apple fees” that would allow consumers to pay Epic for in-app purchases rather than through Apple.

“Unbeknownst to Apple, Epic had been busy recruiting a legion of lawyers, publicists and technicians to orchestrate a sneaky assault on the App Store,” Apple’s lawsuit read. “Shortly after 2:00 am on August 13, 2020, the morning that Epic would activate its hidden commission theft feature, Sweeney again sent an email to Apple executives, stating that ‘Epic no longer will adhere to Apple’s payment processing restrictions. ‘ “

“According to Mr. Sweeney,” the lawsuit states, “Epic would continue to use Apple’s App Store, but would” offer customers the option “to pay Epic instead of Apple, depriving Apple of any return on its innovation. and investment in the application. Store and place Epic in open breach of contractual obligations for years that Epic and all other Apple developers have agreed to. “

Epic has been rubbing Apple’s nose in the conflict by criticizing and even misleading the company. On his website, the creator of the game created a page with the hashtag #FreeFortnite and an FAQ in which he condemned Apple for its actions. Epic also came up with a video called Nineteen-Eighty Fortnite, a parody of Apple’s famous 1984 commercial, but this time with the iPhone maker as the bad guy. And for their Tart Tycoon competition, Epic prepared several anti-Apple prizes, including a free Fortnite hat and a playable character skin that looks like Apple CEO Tim Cook.

The not-so-kind jokes from Epic haven’t gone unnoticed by Apple. In any case, the campaign has served to irritate the company.

“Epic proceeded to launch a calculated and prepackaged campaign against Apple ‘on a multitude of fronts – creative, technical, business and legal,’ as Mr. Sweeney had previously threatened,” Apple said in its lawsuit. “Epic filed its pre-worded 56-page Claim in this case within hours of Fortnite’s removal from the App Store. Epic then publicized its deliberate breaches of contract through a Fortnite animated short that mimicked the seminal 1984 Macintosh campaign. Apple and the villain Apple for enforcing their contractual right to remove unsupported Fortnite from the App Store. “

In its lawsuit, Apple seeks a jury trial on all the issues. Neither Apple nor Epic immediately responded to TechRepublic’s request for comment.

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