“Fortnite” maker Epic Games is targeting a bona fide dust-up against Big Tech, and it is gaining the support of other leading app developers in the process.
Spotify Technology Inc. SPOT,
and Match Group Inc. MTCH,
has recently issued statements in support of Epic, which has filed a lawsuit against Apple Inc. AAPL,
and GOOG by Alphabet Inc.,
GOOGL,
Google already led to monopolistic practices on Thursday.
The tech giants, representing the world’s two dominant operating systems, pulled “Fortnite” from their app stores for violating their in-app payments rules after Epic tried to offer in-game currency discounts for players which Apple and Google with their purchases.
“We fully support Epic Games’ efforts … to show how Apple is using its dominant position and unfair policies to hurt consumers, app developers and entrepreneurs,” a Match Group spokeswoman said in a statement. Thursday. “Regulators around the world have expressed similar concerns and are investigating” what some describe as “Apple’s arbitrary practices.”
A Spotify spokesman said the company was applauding[s] Epic Games’ decision to take a stand against Apple once again highlights Apple’s abuse of its dominant position. The streaming music giant claimed in its statement on Thursday that “the unfair practices of Apple have approached competitors and the consumers have been escaping for far too long.”
Facebook Inc. also joined in the criticism, with an executor telling Bloomberg News that Apple did not waive its 30% fee or allow Facebook to use its own payment tool on a new feature that the social media giant rolled out to allow companies to host virtual events. Alphabet also does not charge the fee, but will allow Facebook to use its own payment processing tool, according to the Bloomberg piece, and Facebook does not take any revenue cuts on this feature.
Microsoft Corp. even ventured into the Epic saga, after Apple determined that the company could not list its xstream game streaming service in the App Store because Apple could not control all games made available through the service. Microsoft claimed that Apple “consistently treats gaming apps differently, applying more applicable rules to non-gaming apps, even if they include interactive content,” according to a statement quoted by The Verge.
Both Apple and Google account for as much as 30% of all digital goods purchases made in apps downloaded through their app stores, a practice that is fueled by increasing pushback from developers and government officials. Spotify filed an anti-trust complaint against Apple in Europe last year, claiming that the App Store’s payment policy made it difficult for other apps to compete effectively with Apple Music.
Regulators are investigating the practices of Apple’s App Store, which last month were also the focus of an House of Representatives’ anti-trust. Lawmakers questioned Tim Chief of Apple, Tim Cook on the company ‘App rates’ and what would prevent the company from increasing its cut of App Store-related purchases.
Read more: Antitrust questions blow, but do not break Big Tech CEOs in historic hearing
Apple said in a statement on Thursday following the removal of ‘Fortnite’ that its App Store guidelines are ‘designed to keep the store safe for our users’ and that the company will ‘make every effort to work with Epic to address these violations’. so they can return ‘Fortnite’ to the App Store. ‘
Match Group, which serves Tinder and other dating apps, could be a proponent of more developer-friendly practices for the app store, analysts have said. In general, Apple developers pay a 30% reduction in digital services revenue for the first year of a recurring subscription and 15% for all remaining years, but many dating app users do not sign up for paid plans for several years, which means that Match might pay the full 30% more often than some other developers.
Apple shares have gained 48% over the past three months as the Dow Jones Industrial Average DJIA,
has risen 18%.
.
