iT WAS A surgical operation worthy of the best “Fortnite” players. On August 13, Epic Games hired Apple to launch its hit game from the App Store. Within an hour of Apple’s decision, Epic launched an anti-trust case against the tech giant. Epic’s sleek parody of Apple’s famous ‘1984’ ad now casts its enemy as the oppressive, gray Big Brother.
Epic’s provocation was to offer users alternative payment methods for in-game goodies. Those who bought 1,000 V-Bucks, the game’s internal currency, via the App Store would cost $ 9.99. Buy directly from Epic, which would prevent the 30% cut Apple takes from each in-app transaction, and you pay $ 7.99. This dodge is in violation of the rules of the App Store, hence the dismissal. The same day, “Fortnite” was removed from Google’s Play Store, which serves Android phone users, for the same reason.
In question is the tight grip that Apple exerts on its devices. The company tries to make sure the App Store is the only way for iPhone users to get software. This, says Apple, keeps apps coherent and secure. Critics say it’s stiffening competition and allowing Apple to keep app vendors above a barrel. Unlike owners of Apple phones, Android users can purchase software, including “Fortnite”, from various vendors, and limit the power of Google; in 2018, Epic launched its own web-based store for PC games, where it costs a 12% cut from developers.
App developers and companies from Airbnb to Match Group have had run-ins with Apple similar to Epic’s. Complaints from Spotify, a music streaming service, and Kobo, an e-book reader, have led to a EU antitrust probe. Shortly after Epic launched its lawsuit, Spotify and Match gave their support to it. Epic claimed that a ban on “Fortnite” would threaten dozens of other iPhone games that have licensed its code.
On August 17, Apple said that the App Store would welcome “Fortnite” if Epic scrapped its payment team. Tim Sweeney, Epic’s feisty boss, will probably not give up easily.
This article appeared in the Business section of the print edition under the heading “Playing Hard Ball”
