Epic Games vs Apple, what is at stake?
Apple sues Epic Games for violating the terms of the contract signed with Cupertino, but Epic Games is intent on dismantling a business model
The question and answer between Epic Game and Apple continues in these weeks. The last act? The Bitten Apple has decided to respond to the legal action initiated by Epic Game against him with another lawsuit. The reason? Fortnite, a video game developed by Epic Games, would have violated the contract signed with Cupertino.
But the war isn't just about Apple at Epic Games. If Epic's subpoena were upheld, the foundations of a (consolidated) ecosystem of millions of apps and billions of dollars distributed to developers would be skipped.
THE STAKES
Let's start with the possible consequences. As the Financial Times pointed out, the stakes in this dispute are high. "A total victory for Epic, in Apple's words," would threaten the entire App Store ecosystem. "
THE STATEMENT OF EPIC GAMES
Epic Games, on the other hand, says it clearly. His is a move to try to dismantle a business model that does not suit users: "Epic believes that all mobile users have the right to save money by using more efficient purchasing options," the company website reads . The rules of Apple and Google "are designed to cement their monopoly, to limit consumer choice and to specifically stifle competition in digital goods."
“Mobile devices – adds Epic Games – are essential IT devices on which we lead our social and professional life and we dedicate ourselves to commerce and entertainment. Apple cannot rightly control the terms of physical and digital commerce and use its monopoly power over devices to prevent competition in payment processing, retail and app management. ”
THE RISKS FOR EPIC GAMES
The crusade could also see Epic Games lose. A total victory for Apple, Epic said, according to the Financial Times, would be "existential" for its Unreal Engine, a platform used by countless developers including Microsoft. "
Meanwhile, Epic risks "irreparable damage" if the ban continues, the company said in court . There are more than 116 million registered users on Apple devices who are now unable to update the Fortnite software or reinstall it if it is deleted.
WHAT HAPPENED
Let's take a step back. Fortnite, Thursday , August 13, announced the introduction of its own in-app payments service and promised discounts of 20% on the prices applied to date. By doing so, Epic Games has violated the terms of the contract entered into with Apple (and also with Google). When an application, even free, offers the possibility of making "in-app" purchases (within the app) to work, in fact, the user uses payment systems from Google and Apple, which withhold percentages on the purchase up to 30 percent.
Cupertino and Mountain View immediately responded to Fortnite's moves, removing the video game from their platforms for violating the rules. For many users, exclusion means a stop to the game. Fortnite cannot be downloaded and updated.
THE WAR IN THE COURT
Meanwhile, the war has moved to court. Epic sued Apple and Google, accusing them of violating antitrust laws. In the documents, filed with a Californian court, the game developer argues that the restrictions on payments imposed by Google and Apple constitute a monopoly.
The Bitten Apple, in turn, has also decided to bring Epic Games to court for not respecting the terms of the contract, introducing a new payment system within the Fortnite app. Big Tech asks for punitive damages.
THE COMMENT OF APPLE
“Epic's lawsuit is nothing more than a financial disagreement. Although Epic presents itself as a modern day Robin Hood, in reality it is a multi-billion dollar company that does not want to pay for the enormous value it derives from the App Store, ”says Apple.
NOT ONLY FORTNITE. AGAINST APPLE ALSO MICROSOFT
In fact, the verge writes , the stakes for Apple could be much higher. And "Ios could be at risk". In fact, not only Fortnite, but also Microsoft, on the front of contemporary gaming, the one in the cloud, is putting a spoke in the wheel to the business of the bitten Apple.
Microsoft claims that "Apple is the only generic platform to deny consumers cloud gaming services and game subscriptions like Xbox Game Pass." What does it mean? That a few weeks after the xCloud debut, users with iPhone and iPad may not be able to play in streaming.
THE INVESTIGATIONS OF THE EU ANTITRUST
As the BBC points out , the legal battle comes as Apple faces greater scrutiny from regulators for its App Store practices.
During a hearing on Capitol Hill in July , members of Congress expressed concern that Apple's control over the app store could harm competition.
In June, however, the European Union launched two antitrust investigations on Apple. One will check whether Apple has violated EU competition rules with its App Store policies, as reported by Spotify and Rakuten.
The Cupertino giant denies the allegations, arguing that its App Store has made it easier and cheaper for developers to distribute products.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/epic-games-vs-apple-qual-e-la-posta-in-gioco/ on Sun, 13 Sep 2020 06:34:09 +0000.