Players can buy V-Bucks, in-game currency, which are used to acquire new outfits, weapons and skins. Fortnite is a free-to-play game, meaning it's free to download and Epic makes money from in-game purchases. It all came down to Fortnite's success on phones and how Epic makes money. Of course, an appeal could also delay the effect of the injunction. Once the injunction goes into effect (in 90 days), you could start to see larger app developers advertise payment options on their own websites with discounts that equate to the commission fee. "The main thrust of the Court's ruling is that 'success is not illegal.'" What does this mean for me? "For Big Tech, there's a sigh of relief because the walls of their gardens will not come tumbling down today, even if this ruling tries to put some cracks in it," said Paul Swanson, a lawyer at Holland & Hart who specializes in antitrust issues. The case has huge ramifications across the tech world because many of the major companies, including Google, run lucrative platforms that charge a commission on apps. "Rather, Epic Games challenged the imposition of any commission whatsoever." What does that mean for the tech world? She noted that Apple's commission rate appears inflated, but that Epic didn't seek to challenge that aspect. "Namely the lack of information and transparency about policies which effect consumers' ability to find cheaper prices, increased customer service, and options regarding their purchases." "Common threads run through Apple's practices which unreasonably restrains competition and harm consumers," she wrote. Rogers, however, did criticize Apple's business practices and suggested they could be anti-competitive. Rogers felt that Epic overreached in trying to dismantle the entire app commission system. What did the judge have to say about their arguments? What's Epic doing about this?Įpic filed a notice of appeal on Sunday, signaling that this legal battle is far from over. "Today's ruling isn't a win for developers or for consumers," Epic CEO Tim Sweeney wrote in a tweet shortly after the ruling. Rogers felt the argument was too broad and ultimately ruled against the game publisher. What does Epic end up with?Įpic was seeking to upend the entire app model of charging a commission to sell programs and games on a platform. Rogers said she agreed with Apple's claim that Epic had violated its developer agreements, and awarded damages equal to 30% of the $12 million Epic collected from iOS users between August and October 2020, plus 30% of any such revenue Epic's collected since then. jobs, and where the rules apply equally to everyone," the company added. "We remain committed to ensuring the App Store is a safe and trusted marketplace that supports a thriving developer community and more than 2.1 million U.S. Judge Yvonne Gonzalez Rogers of the US District Court for the Northern District of California dismissed most of Epic's claims, but in an injunction did force Apple to allow developers to inform their users of alternative ways to pay within the app.Īpple, unsurprisingly, applauded the judge's decision, adding in a statement that it "faces rigorous competition in every segment in which we do business." This case could have ramifications on how legislators look at Apple, as well as the separate legal battle between Google and Epic.Īpple, for the most part, prevailed over Epic, with one major caveat. And it isn't a total victory for Apple, as the judge's order represents a crack in the walled garden that is its multibillion-dollar app ecosystem. The decision also comes at a time when both Europe and the US are scrutinizing the power of Apple, Google and other tech giants. The fight isn't simply a battle between two tech giants - it's a tussle over principle and just how much control a tech company has over the products that are sold on its platform. It's not seeking money from either company, just that they repeal what Epic considers the companies' monopolistic practices. Epic countered by filing lawsuits against both companies. It immediately drew the attention of gamers, consumers and the tech world, since Fortnite had been downloaded over 250 million times on iOS alone. This fight, which also includes Google in a separate lawsuit, began in August 2020 when Fortnite was kicked off both the App Store and the Google Play Store after attempting to bypass the 30% fee Apple and Google charge developers. The judge dismissed most of the claims against Apple, although she forced the company to allow developers to inform users of alternative ways to pay within apps. A year-long battle between Apple and Fortnite publisher Epic over how the App Store operates finally came to a head after a federal judge issued a ruling (see below) that largely sided with iPhone maker.
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