Epic vs. Apple: Epic loses millions, Apple possibly billions
In the court case between Epic and Apple, both parties seem to be losing. However, the consequences for Apple probably weigh heavier. The winners? Developers and users. Epic will appeal the decision.
«Fortnite» will remain unavailable on iOS. That's the result of a court decision handed down last Friday in California. What was it all about? The high-profile dispute between Epic and Apple. Epic will appeal the decision..
The dispute is about the fact that Epic implemented its own payment option for the in-game currency V-Bucks in «Fortnite». This violates Apple Store rules, which is why Apple banned the game from the store. The same thing happened in the Google Play Store – this court case is still ongoing. Epic then filed suit against Apple for illegal monopoly.
No monopoly – if only just
The court has now ruled that Apple doesn’t have to allow alternative app stores or sideload capabilities. The company may also hold on to the 30 percent fee on transactions. Epic violated the contract with Apple and may continue to be excluded from the App Store. The main reason for the decision is that Apple's market share in the mobile games market is still just short of a monopoly.
Epic has to give up 30 percent to Apple for the short time «Fortnite» made about 12 million in revenue with unlawful in-game payments. Apple calls the ruling a «resounding victory».
In truth, the ruling could cost Apple billions. The court found that the app store restrictions are anti-competitive. As a result, Apple must allow app developers to draw attention to alternative payment options outside the App Store. Currently, developers are prohibited from even hinting at alternatives to in-app payments. However, the court added that Apple could collect the 30 percent transaction fees even if in-app payments are circumvented. Such additional contracts would be more difficult, time-consuming and expensive for Apple.
As a child, I wasn't allowed to have any consoles. It was only with the arrival of the family's 486 PC that the magical world of gaming opened up to me. Today, I'm overcompensating accordingly. Only a lack of time and money prevents me from trying out every game there is and decorating my shelf with rare retro consoles.
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