Antitrust concerns resurfaced this year as various government agencies launched investigations into the market power of large tech companies. But it's not just officials who are concerned about the power of big tech. Private companies are also attacking.
The most notable example is the legal battle between video game giant Epic Games (developer of the video game) Fourteen days) and Apple, the most valuable company in the world. Here is a story of the ongoing feud, the latest developments, and how it could affect you.
What's wrong with Apple?
For Epic and other developers, Apple's control over the App Store is the crux of the matter. This was one of the topics raised at the House antitrust hearing in July. Critics claim that Apple is using its control of the App Store, the gateway for iOS users, to get excessive savings (up to 30%) from app developers.
Apple CEO Tim Cook responded to the judicial committee's argument by stating that Apple was facing competition from other platforms such as Android. He also argued that the App Store enabled small developers to reach audiences they otherwise couldn't, and called it an "economic miracle".
Epic broke Apple's rules and was immediately removed
Fourteen days is one of the largest games in the world with over 350 million registered players as of May. The game is free to play, but players can spend money to unlock things like cosmetics for their characters. As a result, the free game can generate billions in revenue.
Like Google, Apple allows developers to make in-app purchases in the App Store, but charges a 30% commission on those transactions, and that's where Epic took offense. In July, Epic Games founder Tim Sweeney criticized Apple and Google for taking too much off the shelves of developers, calling the practice "terribly unfair and exploitative."
On August 13th, Epic added a new feature Fourteen days On iOS and Android, users can make their in-app purchases directly from Epic (at a discount), bypassing Apple and Google.
Apple responded by removing Fourteen days from the App Store, and Google did the same on Google Play. Epic was quick to file lawsuits against the companies, calling for anti-competitive practices. Epic also released a video parodying Apple's classic 1984 ad, this time with an apple man as Big Brother. Epic's quick response suggests the company expected a fight.
Apple continues to threaten Epic
On Aug. 17, Epic claimed that Apple was planning to revoke Epic's access to development tools for iOS and macOS. A claim Apple later admitted was correct.
Apple removed Fortnite from the App Store and informed Epic that on Friday August 28th, Apple will terminate all developer accounts and cut Epic off from iOS and Mac development tools. We urge the court to stop this retribution. Details here: https://t.co/3br1EHmyd8
& mdash; Epic Games Newsroom (@EpicNewsroom) 17th August 2020
This decision would have an impact on the entire world of game development. Epic makes the Unreal Engine which is widely used by other developers.
Epic filed a restraining order against Apple, arguing that Apple's decision was retaliation and would do "irreparable harm" to Epic, that it was against the public interest and the Sherman Act. Epic wanted Unreal Engine access as well Fourteen days restored.
The California judge gives Epic a partial victory
On August 24th, Epic and Apple attended a virtual trial on the matter.
Judge Yvonne Gonzalez Rogers concluded that the developer had strategically violated Apple's guidelines, but also that Apple's actions to exclude Epic from developer tools would be detrimental to both Epic and the public interest.
"The record shows potential significant damage to both the Unreal Engine platform itself and the gaming industry in general," she writes, "including third-party developers and gamers."
Rogers issued a partial restraining order to Epic that restored developer tools but did not force Apple to return Fourteen days to the App Store.
Where are we now
Companies may have a long time to go to court. The lawsuit is due for another hearing in September. For gamers, the most immediate impact is the inability to download Fourteen days soon from the App Store.
However, if you already had Fourteen days installed, you can still play it for now, but you won't have access to new content when the next season comes out.
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