Epic Games vs Apple Archives - Gizmochina

Epic Games’ Fight Against Apple Tax Could Have Major Implications for App Developers and Consumers

Oğuz Çakır — Fri, 29 Sep 2023 00:30:40 +0000

The commercial battle between Apple and Epic Games is ongoing at full speed, at least for one of the parties. As you may know, Apple takes a certain percentage from every purchase made on the App Store. This cut is even referred to as the “Apple tax” in the industry. However, Epic doesn’t want to pay millions of dollars from its Fortnite Mobile earnings as a “tax.”

Therefore, the two companies went to court a while back, making moves to outmaneuver each other. Apple emerged victorious, and the commission fees continued to be collected without any disruption. Yet, Epic Games has asked the Supreme Court to reconsider the antitrust ruling against Apple. Here are the details…

Epic Games Asks Supreme Court to Reconsider Apple Tax Ruling

In the early stages of the Apple vs. Epic case, things seemed to be going quite well for the gaming company. In fact, in 2021, Epic Games had won the case, effectively opening the door for payment methods outside of the Apple Store. However, despite these developments, The company appeals overshadowed Epic Games’ victory.

The High Court’s decision rejected the request to loosen Apple’s App Store rules. However, the battle isn’t over, as Epic Games has asked the Supreme Court to reconsider its ruling in the antitrust case against Apple. In its petition to the Supreme Court, Epic argues that the 9th Circuit’s ruling is wrong and that Apple’s App Store policies violate federal antitrust laws.

Epic specifically argues that Apple’s monopoly power in the App Store allows it to charge high commissions on in-app purchases and that this harms consumers and developers. If the Supreme Court agrees to hear Epic’s appeal, it could have a major impact on the future of the App Store and the mobile app market.

A ruling in favor of Epic could force Apple to change its policies and could make it easier for developers to compete with Apple. Let’s not forget that the European Union has also been pressuring Apple recently to relax its App Store policies. However, while it’s still uncertain if the American tech giant will back down, it doesn’t seem like they’re willing to give up billions of dollars in revenue.

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Apple has till Dec 9 to change its in-app payments system after Epic Games case

Sean — Wed, 10 Nov 2021 08:53:55 +0000

Earlier this week, Apple had requested a delay over the implementation of new changes in its payment system in a virtual hearing. However, the US Judge denied this request, which gives the company till December 9 to make the changes to its App Store.

For those unaware, the changes in question would allow developers of various apps to add an in app link to an external website. Through this, users will be also be given an option for alternate payment options that do not use the in app payment system. After the initial ruling, the Cupertino based giant was given 90 days to implement the new changes. But back in October, Apple filed a request for more time as it sought to wait until all appeals in the lawsuit against Epic Games were concluded.

As of right now, the iPhone maker’s request has been denied by US Judge Yvonne Gonzalez Rogers and no additional time will be given to add the requested App Store changes. The original ruling also read that the company can no longer restrict developers from including “in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms” (Via MacRumors).

The Judge believes that the app developers should have the option to choose an in app payment system or an external one, since “Consumer information, transparency, and consumer choice is in the interest of the public.” Although, Apple argued that the new changes might “upset the careful balance between developers and customers provided by the ‌‌App Store‌‌.”

Apple vs Epic: Apple ordered to allow alternative forms of in-app purchase

Jed John Ikoba — Sat, 11 Sep 2021 16:33:51 +0000

The year-long Apple versus Epic case instituted at a California court has been concluded with the Judge making a couple of important rulings. Judge Yvonne G. Rogers has issued a permanent injunction that restricts Apple from enforcing some of its previous restrictions as it relates to in-app purchases in the App Store.

According to the court papers released, Judge Rogers stated that Apple is permanently restrained and enjoined from prohibiting developers from including in their apps external links that direct users to purchasing mechanisms, communicating with customers through points of contacts obtained voluntarily from the app. In simple terms, however, this means that going forward, iOS apps must now be allowed to direct customers to payment options outside those offered by Apple. Pending no appeal, the ruling will come into force within 90 days (December 9).

However, Apple seems to have avoided any damages over the substantive issue which was also decided upon by the court. The court ruled that Epic Games breached its contract with Apple when it unilaterally implemented the alternative payment system in the Fortnite game app. Epic was therefore directed to pay Apple 30 percent of all revenue collected through the system before Apple pulled the game from its store in August 2020. Apple will therefore receive $3.5 million from Epic.

While Apple has put a statement in support of the decision, Epic could be preparing an appeal of the ruling in a higher court, as it is unsatisfied with the decision. The court failed to support the deputation by Epic, the plaintiff, that Apple was monopolistic, although it reflected that Apple is engaging in anticompetitive conduct under California’s competition laws. Apple says it remains committed to ensuring the App Store is a safe and trusted marketplace.

Apple had come under closer regulatory scrutiny after the case was filed by Epic in August 2020. It is already under some form of restrictions notably from Japan and South Korea, and the new ruling will further keep the company and its marketplace practices in the spotlight.

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Apple admits to raking up to $100 million from Epic’s Fortnite game in 2020

Jed John Ikoba — Fri, 21 May 2021 02:34:40 +0000

More revelations have been made in the ongoing trial between Epic Games and Apple. Today, Michael Schmid, Head of Games Business Development for the Apple App Store, gave his testimony. In a Bloomberg report, Schmid was quoted to have said that during the two years before Apple removed Fortnite from the App Store in 2020, the game grossed $100 million for the US tech giant through commissions.

The fine details of the dynamics that yielded the said amount to Apple and the exact figure were left out by Schmid in his testimony, however. When he was asked whether Apple made over $200 million from the Game, Schmid responded that it would be inappropriate for him to answer the specific question.

Apple removed the game from the app store after Epic; the game developer violated its app store regulations by creating an in-app payment platform for Fortnite players. This was in a bid to bypass the 30% commission charged by Apple for such payments. Some industry experts have already estimated that Apple could have grossed more than $350 million from the game. On the other hand, Epic challenges the huge commission Apple is receiving from app developers and is accusing Apple of being a monopoly.

The App Store has been a massive money-spinner for Apple over the years. Last year alone, it made over $22 billion from the store via commissions. The trial is being followed keenly by many other companies who have continued to question what has now been termed Apple tax. This week may mark the high point of the trial, which is already winding down. Apple CEO Tim Cook will testify on Friday in what could further illuminate the issue. Cook has been granted permission by the trial judge to be the first to mount the stand on Friday as the tech giant concludes its arguments. Monday will see Epic also making its final submissions before judgment is delivered.

The trial is a bench trial and so the Judge will deliver judgment without a jury. Whichever way the judgment swing, it will have a far-reaching effect on the entire mobile hardware and software communities.