Epic Games agreed to sacrifice its key product Fortnite, but proved Apple’s dictatorship to the world.
On August 13, one of the most popular titles in the US and Europe markets, Fortnite, was removed from the App Store by Apple. Regarding the cause, Apple announced that the application developer “intentionally violated the agreement of the two parties”.
CEO Tim Cook once asserted that “Apple does not monopolize or dominate any market” at the US House of Representatives’ antitrust hearing held in July.
However, when the Fortnite app made a slight change in the payment method, Apple immediately showed the dictatorship when it removed the largest mobile game App Store in 2019, without having. an advance notice.
According to the Business InsiderEpic Games, Fortnite’s parent company, has prepared a perfect scenario that leaves Apple in the trap of demonstrating the power of a monopoly. Removing Fortnite is just the starting point for a crisis that Apple has just declared war on the gaming industry.
Apple’s move is in Epic Games’ expectations
Until now, Apple has repeatedly been criticized for the “exorbitant” App Store fee up to 30%. This fee applies to all revenue sources of the application such as buying / selling game items, monthly subscription, display of advertisements …
In addition, Apple also requires application developers to install payment methods using Apple’s own tools, so that the giant can control the source of income and prevent users from trading in places. other with cheaper price.
On August 13, Epic Games updated a feature that allows users to purchase “V-bucks”, a type of Fortnite game item, from Epic without going through the App Store. This update violates the regulations that allow users to transact outside of Apple’s payment gateway.
A few hours later, Apple removed the Fortnite app from the App Store, prompting millions of players to protest because it happened so suddenly, within hours.
|On August 13, Apple removed the game app with the largest revenue on the App Store in 2019 because of “violation of the agreement of the two parties”. Image: The Verge.|
Epic seemed to have anticipated that Apple would remove Fortnite, as the company that developed the game filed a lawsuit against Apple shortly after. The content of the lawsuit alleges that Apple continuously competes illegally in the app distribution market and makes in-app purchases on the iPhone and iPad.
“Instead of accepting this healthy competition, Apple responded by removing Fortnite from the AppStore. This is another example of Apple using its power to impose and maintain an illegal 100% monopoly on payments on iOS devices, ”an Epic Games representative wrote in a letter.
The lawsuit could change the game industry
In the lawsuit, Epic Games did not ask Apple for damages, they asked Tim Cook’s company to change because it violated the law.
Specifically, Epic Games asked the Supreme Court of California to declare “Apple regulations violate US law”, forcing the company to completely change its monopoly policies. A lawsuit that, if successful, would impact the entire gaming industry around the world.
|If the Apple lawsuit succeeds, Epic Games will impact the entire gaming industry around the world. Image: Conclusion.|
“By imposing a 30% fee, Apple forces independent developers to bear lower margins, reducing the quantity or quality of apps. Especially users, they have to pay more money than ever before, “Epic said.
Epic Games ‘argument is smart to compare the costs of other providers’ payments, some just 2.6%, 13 times lower than Apple.
Before that, at the US House of Representatives hearing, the cited document showed that the late Apple CEO Steve Jobs once assessed the 30% fee “will greatly hinder the development of the industry”.
The Epic Games lawsuit is really a concern for Apple as most of the company’s profits in recent years have come from providing services, not selling tangible mobile products like the iPhone, iPad, Macbook.
TechTalk via ZingNews