Fourteen days Developer Epic is suing Apple and Google after both pulled Epic's hit game from their app stores over direct payments disputes. Currently, users cannot download Fortnite and install it on phones through their digital marketplaces.
The heart of the debate is whether Epic has the right to include a direct payment service in its Fortnite app to bypass Apple and Google's payment systems, and the Apple and Google levy of up to 30% on every transaction.
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Epic's lawsuit alleges that Apple has become a "giant trying to control markets, block competition and stifle innovation."
"Apple is bigger, more powerful, stronger and more damaging than the monopoly of yesterday," says Epic in the suit. "Apple's size and reach far exceeds that of any technology monopoly in history."
Epic's lawsuit against Google accuses the tech giant of having given up its idealistic roots, saying Android's claim that it is an open ecosystem is a "broken promise".
"In 1998, Google was founded as an exciting young company with the unique motto" Don't Be Evil "," says the complaint. "Twenty-two years later, Google almost belittled its motto and is using its size to harm competitors, innovators, customers and users in a number of monopoly markets." Google did not respond to a request for comment on the lawsuit.
Apple previously announced on Thursday that it would remove Fortnite from its app store because the game violated the guidelines. Apple says it applies to all developers equally and should keep the store safe.
"As a result, the Fortnite app has been removed from the store," Apple said in a statement, adding that it will be working with Epic to fix the issue. "Epic has enabled a feature in its app that has not been reviewed or approved by Apple, with the express intention of violating the App Store's in-app payments guidelines, which apply to any developer who sells digital goods or services sold. "
Google also cited Epic's rule violations as a reason for Fortnite's removal from its digital marketplace. Consumers can still download the game on Android phones using other app stores such as the Galaxy Store for Samsung devices.
"Fortnite is still available for Android, but we can no longer make it available for Play because it violates our guidelines," said a Google spokesman. "However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play."
"We want to bring every app we can into the store, not keep them out."
Apple CEO Tim Cook
Apple and Google's decision to ban Fortnite from their respective app stores marks a dramatic escalation in the debate between the tech giants, the developers who create programs for their devices, and the regulators keen to investigate it all. Apple's iOS and Google's Android software together provide power to almost all mobile devices in the world. That influence has reshaped the tech industry and the larger global economy, bringing companies like hail and delivery company Uber, game maker Zynga, and ByteDance's TikTok social network to life.
However, the company's control over the respective platforms has led to complaints from some developers that Apple is forcing developers to pay commissions for many purchases in apps with no alternative. And they complain that Google is forcing partners to bundle and promote their own apps on their devices. Both companies were also accused of preferring their respective apps rather than allowing fair competition.
Apple and Google argued that their developer policies protect users and ensure equal treatment for app makers who have created millions of apps for both platforms together. The critics of Apple and Google say that the companies are too restrictive and charge too high a commission for trading on their platforms.
Last year lawmakers and regulators started to join developers in this debate. Apple is pushing to justify its commission of up to 30% and its tight control of its platform while also investigating Google's behavior.
Apple in particular then cited a study it commissioned, which stated that its fees were similar to those of its peers, with the exception of Epic, which charges 12% for its game store.
"Apple's commissions are comparable to or less than the commissions charged by the majority of our competitors," said Tim Cook, Apple's CEO said during a congressional hearing in July. "And they're well below the 50% to 70% software developers paid to distribute their work before we launched the App Store."
The company was still being criticized for its fees. Leading music giant Spotify and other companies filed complaints with the European Union's Competition Commission. The EU launched two investigations against Apple in June: focused on its app store and the handling of the technology behind the Apple Pay payment service.
"It seems that Apple has been given a 'gatekeeper' role in distributing apps and content to users of Apple's popular devices," said EU Competition Commissioner Margrethe Vestager in a statement at the time. "We have to make sure that Apple's rules do not distort competition in markets in which Apple competes with other app developers, for example with its music streaming service Apple Music or with Apple Books."
Cook denied these concerns in his July statement to the US Congress.
"Apple's unfair practices have put competitors at a disadvantage and disadvantaged consumers for far too long."
Spotify spokesperson
"Having started with 500 apps, the App Store is now hosting over 1.7 million - only 60 of them are Apple software," said Cook. "Of course, if Apple is a gatekeeper, we'll keep the gate open. We want to get every app we can into the store, not keep them out."
For now iOS Users who have already downloaded Fortnite on their device seem to still have full use of the app, including the new approach to in-game purchases.
A battle royale for payments
Epic preceded its public battle with Apple with a series of high profile moves.
The company's first step was to offer a discount on its successful Fortnite Battle Royale game, which brings up to 100 people together on a game-simulated island. There they fight until the last player stands (and thus wins the game). Fortnite's design hit it big; The game is easy to understand but difficult to master. Its playful and vivid graphics, free of blood and gore typical of most fighting games, made it more palatable to families and teenagers. It is free to download. The only fees come from "V-Bucks" that players can use in-game buy different cosmetic looks for characters.
On Thursday, Epic announced discounts of up to 20% when players buy V-Bucks directly from Epic. However, they chose to keep prices where they were when players buy through Apple or Google's payment system. As a result, 1,000 V-Bucks cost $ 9.99 if you're using the Apple or Google systems, but only $ 7.99 direct from Epic.
"Currently, Apple and Google charge a 30% fee when using Apple and Google's payment options, and the price drop of up to 20% does not apply," Epic wrote in a blog post on Thursday. "If Apple or Google lower their payment fees in the future, Epic will pass the savings on to you."
Shortly thereafter, Apple removed Epic's app from its store and initiated Epic's lawsuit. Epic also posted a video recreating Apple's famous 1984 Macintosh ad. This time around, Apple is accused of being the bad guy instead of the hero.
The video ended with the proposed hashtag #FreeFortnite, which became the world's most popular article on Twitter within an hour of its posting. In the US, Apple came in second on the top trend list, and Epic in fifth.
Epic troublemaker
This isn't the first time Epic has started a public battle with one of its colleagues. Back in 2018, Epic launched Fortnite for Android by asking people to download the game directly from its website than via Google's Play Store. The company confirmed to CNET that it would have done the same on iOS if it had been able to.
The game came to the Play Store In April, however, Epic criticized Google's efforts to warn Android users of the alleged threats posed by direct downloading from Fortnite.
Spotify, which launched the EU's investigation into Apple, applauded Epic's lawsuit against Apple.
"Apple's unfair practices have disadvantaged competitors and disadvantaged consumers for far too long," a Spotify spokesman said in a statement. "The stakes for consumers and app developers big and small couldn't get higher. Ensuring that the iOS platform functions competitively and fairly is an urgent task with far-reaching implications."
Epic has also selected other public fights. In late 2018, it took over Valve, a popular game maker and developer of the Steam online game store, when it launched its competing Epic Games store for PCs. The company promised lower developer commission fees and began Pay for exclusive rights to popular games like Metro: Exodus and Borderlands 3.
"Many of these issues are areas where they will not all please you," said Tim Sweeney, Epic CEO in a 2019 interview. "The Epic Game Store exclusive products have been controversial in the PC gaming community, who prefer everything to run on Steam, but it is by far the most effective approach to ensuring the success of a new store."
CNET's Ry Crist, Joan E. Solsman and Sean Keane contributed to this report.Continue reading: Best gaming phone for 2020: Razer 2, Asus ROG, Xiaomi Black Shark and Nubia Red Magic Mars in comparison