Fourteen days Developer Epic sued Apple Thursday after iPhone and iPad maker pulled Epic's hit game from the App Store over a direct payment dispute between the two companies. Hours later, Google, along with Apple, banned Fortnite and removed the game from the Play Store to download apps on Android phones.
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."
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 rule violations as the reason for Fortnite's removal from the search giant's 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."
Google's decision to ban Fortnite from its Play Store is likely to trigger an intense antitrust investigation against the search giant. The Android operating system from Google is the most popular mobile software in the world and supplies almost nine out of ten smartphones shipped worldwide with power. The company was accused of having used this dominance to force partners to bundle Google's apps such as search and maps in their offers.
The search giant offers developers similar terms to Apple on the Play Store, but Google has largely avoided the limelight when it comes to criticism from app makers. Thursday's Fortnite ban puts Google in the middle of the high-profile battle.
Epic's lawsuit against Apple marks a dramatic escalation in the debate between the two companies, and thus between Apple and a growing group of developers who disagree with the way the App Store works.
Apple has created developer guidelines to protect users and ensure equal treatment of developers who have created more than 1.7 million apps for their iPhones and iPads to date. The companies and individual programmers say Apple is too restrictive and requires too high a commission for sales made through the apps.
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 over its platform.
Apple then cited a study it commissioned that said the fees were similar to those of its colleagues, 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.
"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 to the last player (and win 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% for players buying V-Bucks direct from Epic through the console or PC versions of Fortnite. However, it was decided to keep prices where they were when players shop through Apple or Google's payment systems, through the versions on iPhones and iPads, or through devices running Google's Android software. As a result, 1,000 V-Bucks cost $ 9.99 when you visit the Apple App Store or the Google Play Store, but only $ 7.99 via PC and console.
"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
