Epic Games files an antitrust suit against Apple, arguing the App Store is a monopoly, seeking no damages but just injunctive relief to “allow fair competition”

Epic has filed a civil antitrust lawsuit following Apple's removal of Fortnite from the App Store

The Verge 2020-08-14 Nick Statt

Discussion

@fortnitegame Fortnite on x
Epic Games has filed legal papers in response to Apple, read more here: https://cdn2.unrealengine.com/ ...
@pkafka Peter Kafka on x
Spotify, which has had a long-running battle with Apple and filed an antitrust complaint of its own, weighs in on Epic v Apple. Spoiler: Spotify supports Epic. https://twitter.com/...
@timsweeneyepic Tim Sweeney on x
Today, Apple said Epic is seeking a special deal, but that's not true. We're fighting for open platforms and policy changes equally benefiting all developers. And it'll be a hell of a fight! https://twitter.com/...
@reckless Nilay Patel on x
The law firm representing Epic / Fortnite in its antitrust case against Apple and Google also defended Qualcomm against the FTC's antitrust case and Amex in 2018's huge Supreme Court antitrust case. (And won both.) Safe bet they know what's possible under current law.
@josephfcox Joseph Cox on x
This is amazing. Epic had a lawsuit all ready to go. Baited Apple to remove the app; files this antitrust stuff straight away. https://twitter.com/...
@eringriffith Erin Griffith on x
this one is gonna be a doozy - Apple banned Fortnite and parent co Epic Games is suing over it https://www.nytimes.com/...
@tomphillipseg Tom Phillips on x
Epic makes the point in its lawsuit that with Fortnite pulled people won't be able to update their game - which means log on and play - next time it is updated. Fortnite's current ends in two weeks so this is a timebomb https://twitter.com/...
@kt_so_it_goes @kt_so_it_goes on x
congrats 2020 after avoiding learning about whatever the hell fortnite is for so long you've forced me into taking their side https://twitter.com/...
@dmc_ryan Ryan McCaffrey on x
Looking at @TimSweeneyEpic's tweets since the xCloud/Apple stuff broke last week and it's been clear the guy has been seething on gamers' behalf ever since. Tim, I tip my cap for fighting the good fight on this for all of us, sir.
@slasher Rod Breslau on x
Epic baits Apple into kicking them off the app store and has a lawsuit with an ad mocking them ready to premiere in game with the entire Fortnite+gaming community behind them 10/10 bait https://twitter.com/...
@hardyluski Hardy on x
“Twitter for iPhone” XDDDD https://twitter.com/...
@albertwenger Albert Wenger on x
The battle over the power of app stores has finally been fully engaged (post here from 2014 https://continuations.com/...) https://twitter.com/...
@protonmail @protonmail on x
We applaud Epic for standing up to Apple's efforts to extort developers. Apple has also previously threatened to remove ProtonMail if we didn't force Proton users to pay higher prices with in-app purchases. Here's why this fight matters: https://protonmail.com/... #freefortnite h…
@zhugeex Daniel Ahmad on x
It is worth bearing in mind that Epic isn't seeking any monetary compensation from this lawsuit. It's all about anti-trust and the monopolistic practices that Apple undertakes to stifle competition on iOS. Essentially that Apple is the sole means where apps can be distributed. ht…
@willsmith @willsmith on x
@andrearene Do I care that the company that is worth $17B wants a better deal from the $2T company? Not really? But I do want the indie teams who are making cool stuff and just trying to survive to have a better deal. And I don't think Apple or Google will listen to any of them w…
@timsweeneyepic Tim Sweeney on x
@noelwalling @FortniteGame The Epic Games Store offers developers 88% of revenue on paid games sold by Epic. Developers are also free to sell EGS titles through Humble, Green Man Gaming and elsewhere with Epic receiving 0%, and to use their own in-game payments and keep 100% of t…
@radicalbytes Jonathan McIntosh on x
Epic is an extremely exploitative company but Apple is running a monopolistic extortion racket with its app store. So in this case we want Epic to win. https://twitter.com/...
@kfury Kevin Fox on x
I don't think Epic Games is going to win this battle royale with Apple.
@balajis @balajis on x
The win/win move may be for Apple to take a stake in the most successful companies in the App Store in return for discounting their fees. The prospect of going from 30% to 0% would be such a lift to the stock price of these companies that it might pay Apple back immediately. http…
@nickstatt Nick Statt on x
Lots of snark about Apple v Epic being two big rich corps fighting over stuff that doesn't affect consumers. But Apple's market cap is sailing toward $2 TRILLION. Epic Games is worth less than 1 percent of Apple. These are not equal sides. https://www.theverge.com/...
@stevekovach Steve Kovach on x
Dramatic play here. Epic had a lawsuit ready to go if Apple kicked Fortnite out of the App Store https://www.cnbc.com/...
@esportslaw Bryce Blum on x
Random, off the cuff thoughts on the Epic Games complaint v Apple. I'm writing these as I read, so it'll be stream of consciousness 1. This was written w/ far more than just the suit in mind. It tells a compelling story intended for public consumption. https://cdn2.unrealengine.c…
@mgsiegler M.G. Siegler on x
The actual cut part is secondary. It's more so about re-writing and re-thinking the App Store rules for 2020, not 2010. Everything has changed in world and in this space. https://500ish.com/...
@kantrowitz Alex Kantrowitz on x
Many companies that pay rent to Apple are going to stand with Epic. Perhaps they'll join the fight. This is going to be a wild one. https://twitter.com/...
@can @can on x
This is the kind of stuff I think that goes over lots of thirsty “Congress doesn't get tech, LMAO did you see the questions they asked??” crowd. The CEO grilling spectacle is part of a long investigation. https://twitter.com/...
@franmirabella Fran Mirabella III on x
It's a stretch for Epic to claim they have to charge you $20 for a skin — but I am glad they are brazenly challenging Apple's policies. It's the same reasons you can't buy an audiobook on the Amazon app. It's just absurd at this point. Hoping XCloud piles on this, too. https://tw…
@ia @ia on x
“Epic enabled a feature in its app which was not reviewed or approved ... with the express intent of violating the App Store guidelines ... We will make every effort to work with Epic to resolve these violations so they can return Fortnite to the App Store.” https://www.nytimes.c…
@joshsternberg Josh Sternberg on x
this is gonna be a wild ride. a company with the funds and fan-base to fight apple. https://www.washingtonpost.com/ ...
@mgsiegler M.G. Siegler on x
Apple is standing on extremely shaky (and in many ways disingenuous) ground. And I don't see why it's worth holding such ground in the face of pissing off developer partners and the next generations of their consumers. There's a bigger game afoot. They're missing it.
@mgsiegler M.G. Siegler on x
Apple is playing checkers here while Epic is playing Fortnite.
@mishaalrahman Mishaal Rahman on x
And now Epic Games has filed a Complaint for Injunctive Relief in the U.S. District Court in the Northern District of California. https://twitter.com/... The very first paragraph brings up Apple's 1984 ad. 😂 This is quite a spectacle!
@jsnell Jason Snell on x
It does make you wonder if Apple is trying to shoot the moon... will be interesting to see if Apple ends up cutting deals, saving face, or playing hardball and daring regulators and legislators to force them to change https://twitter.com/...
@viticci Federico Viticci on x
Questionable rules that are not applied equally to all devs; seemingly random app rejections; secret backroom deals; inability to change default apps; rejection of cloud gaming services; a 30% fee in 2020; conflict of interest with  Services. None of this bodes well. 😬
@neilcybart Neil Cybart on x
Epic Games had a lawsuit all ready to go against Apple for removing Fortnite after Epic Games violated App Store guidelines. Here is Epic's goal in pulling today's stunt: They want to have their own app store on Apple devices. https://cdn2.unrealengine.com/ ... https://twitter.co…
@thurrott Paul Thurrott on x
Exactly. No need to wait for slow moving regulators. Take the fight to Apple. https://twitter.com/...
@thurrott Paul Thurrott on x
I take back everything I've ever said about Tim Sweeney. Brilliant. Just brilliant. https://twitter.com/...
@tomwarren Tom Warren on x
The only hope we have of Apple being forced to change its App Store policies is with the EU. It has shown it's willing to make companies change, while the US has been unwilling. The EU is already looking at the xCloud situation, and Epic Games has played straight into this.
@mcwm Mike Murphy on x
someone needs to file an amicus or join the lawsuit so we can call this a BATTLE ROYALE https://twitter.com/...
@samguichelaar Sam Guichelaar on x
I like neither Epic nor Fortnite but this seems like a good step for everyone who uses iOS. I really hope this (very obviously orchestrated) lawsuit will help end Apple's monolithic monopoly when it comes to iOS Applications. https://twitter.com/...
@stroughtonsmith Steve Troughton-Smith on x
I don't for a second think Epic will win the lawsuit, but it's going to generate a lot of coverage that exposes Apple's more negative aspects to regular consumers, and discovery might be fascinating
@viticci Federico Viticci on x
The Epic-Apple drama feels like the logical conclusion of what's been escalating for months. I don't think Epic will win the lawsuit. But: this is terrible publicity for Apple, and more ammo for antitrust cases. I have a feeling none of this will end well for Apple.
@pkafka Peter Kafka on x
Epic appears to be a Unicorn. Enough resources to fight Apple in court for years if it wants to, big enough to live without Apple's customer base if necessary, angry enough to go ahead with this provocation/lawsuit. https://www.vox.com/...
@pkafka Peter Kafka on x
Little companies didn't fight Apple because they couldn't/were afraid to. And big companies have found ways to work with Apple, because they had enough leverage and time to do so.
@pkafka Peter Kafka on x
Or in other cases, they've figured out they can just work without Apple (see: Netflix).
@pkafka Peter Kafka on x
The main takeaway, for now, again: Lots of big & small companies have complained about Apple's App store policies, going back 9 years. https://allthingsd.com/... But no one has gone ahead and actually done anything about it until today. Which tells you a few things.
@kantrowitz Alex Kantrowitz on x
From a few weeks ago: “Apple, like Microsoft, must figure out its philosophy. As long as it stays in asset-milking mode, it's going to endure more strife.” Now, that added strife is here. https://bigtechnology.substack.com/ ...
@matthewstoller Matt Stoller on x
This complaint quotes members of Congress at the big tech hearing. This is the first shoe to drop from the investigation, a private antitrust complaint against a tech monopolist. https://twitter.com/...
@mgsiegler M.G. Siegler on x
It's almost as if this was teed up and ready to go... https://twitter.com/... https://twitter.com/...
@gartenberg Michael Gartenberg on x
Apple refused to settle the ebook antitrust case. Tim felt Apple was in the right and was willing to take it all the way to the end. Apple lost, has to pay for a special master to oversee process amongst other things. I do not see Apple walking away. It's going to be epic.
@reckless Nilay Patel on x
And the orchestra swelled. Also safe to assume Apple knew this was coming, and I think both sides are eager for the fight. https://cdn2.unrealengine.com/ ... https://twitter.com/...
@marypcbuk Mary Branscombe on x
Apple has certainly set itself up for being roasting as having become what it once opposed; but most companies evolve into any enemy they fixate on. See Google and 90s era Microsoft... https://twitter.com/...
@ryanwhitwam Ryan Whitwam on x
Clearly, Epic expected Apple to remove Fortnite and got this lawsuit ready in advance. Epic picked a fight on purpose. I wonder if Google is going to jump in. I'm sure Epic has a Google lawsuit prepped, too. https://twitter.com/...
@sokane1 Sean O'Kane on x
Going to be fun to see how far each side gamed this out. Epic was clearly baiting Apple and had a fusillade ready. How much game theory did Apple do before it yanked Fortnite? https://twitter.com/...
@chriswelch Chris Welch on x
I'm surprised Epic didn't mention “and did you hear they're going after that tiny company because of a pear logo?!” in this complaint https://www.theverge.com/...
@shiraovide Shira Ovide on x
Now that I know that this provocation of Apple was a legal ploy...I'm kinda bored? I don't know, a court case will take 1,000 years. https://twitter.com/...
@nickwingfield Nick Wingfield on x
Somewhere inside Google right now, I'd wager there is a team of lawyers and others with sweaty fingers hovering above a “delete app” button on the Google Play Fortnite page. https://twitter.com/...
@benbajarin Ben Bajarin on x
Grab the popcorn was right. 🍿 https://twitter.com/...
@lexnfx Alexei Oreskovic on x
Where's the Epic video spoof for Google?? https://twitter.com/...
@reneritchie Rene Ritchie on x
And it's no longer just an Apple story... (It will remain 99% an Apple story though, right?) https://twitter.com/...
@martinsfp Martin Sfp Bryant on x
I'm sure Epic anticipated this too. https://twitter.com/...
@nickwingfield Nick Wingfield on x
Delete button PUSHED https://www.theverge.com/... https://twitter.com/...
@craiggrannell Craig Grannell on x
I guessed this one wrong. I figured Google would just ignore Epic and hope the problem would go away. Hard to see how Epic will win against Google here, mind, given that anyone can sideload apps into Android. Heck, that's how Fortnite started out—until Epic caved. THREAD >>> http…
@dannypage Danny Page on x
At least with Android, you can still install Fortnite anyway. You know, like most computers. https://twitter.com/...
@iphonedo @iphonedo on x
MORE POPCORN PLEASE!!! 🍿 https://twitter.com/...
@lanceulanoff Lance Ulanoff on x
Why would Epic do something it KNEW would get it booted off both platforms? Also, expect a quick update and reinstatement by next week, IMHO https://www.theverge.com/...
@bling0 Benjamin Ling on x
File under: When duopoly platforms try to take too much rev share vs. value provided (e.g. 30% rev share reasonable if platform actually drives customer acq, not just enable it), developers with power will eventually rise up. The first of many? https://www.theverge.com/...
@aaron_pearce Aaron Pearce on x
So will Epic sue Google too? https://twitter.com/...
@tomwarren Tom Warren on x
Google is also banning Fortnite on its Android Play Store for bypassing the 30% in app purchases. Now let's see what Epic has prepared on the Android side... https://twitter.com/...
@lowspec_gamer LowSpecGamer on x
Interestingly enough, since you can still get Fortnite on Android directly from Epic via side loading they can just point at this as an example as to why Apple is acting like a monopoly on their lawsuit. Or can they? https://twitter.com/...
@zhugeex Daniel Ahmad on x
I'm interested in what Epic will release now that Google has banned it from the Play store. The Apple lawsuit makes sense but Epic can't hit Google on all of the same points. https://twitter.com/...
@pkafka Peter Kafka on x
Tinder (and the rest of Match Group) sides with Epic Games vs Apple/Google. https://twitter.com/...
@martinsfp Martin Sfp Bryant on x
Of course Epic had a lawsuit ready to go against Google too. It's on shakier ground than the one against Apple (Android is far more open), but it's hard to fault the way they executed their assault on App Store rules on both platforms https://www.theverge.com/...
@jcenters Josh Centers on x
Epic suing Google just proves how disingenuous they are. Google absolutely isn't forcing them to sell in the Play Store.
@reneritchie Rene Ritchie on x
Epic is on fire. (I just can't tell yet if it's in the classic or slang sense of the word.) https://twitter.com/...
@tnkgrl Myriam Joire on x
@t3mporarybl1p @gruber @Apple @EpicGames Same with every Android phone that has a locked bootloader, most modern laptops that don't let you install other OSes, every Tesla ever made... Not saying it's right, but this is more about App Store control and money, and pisses me off!
@stroughtonsmith Steve Troughton-Smith on x
I don't care much for Epic's reasoning, and I definitely don't feel like Epic's doing this for all of our benefit as developers — especially when they state in the lawsuit that they want to provide an alternate app store of their own — but fascinated to see how this shakes out
@nilchristopher Nilesh Christopher on x
It's Epic Games, Spotify, Hey and Tinder versus Apple in-app payment shenanigans. Penalising Epic Games for offering customers a choice of payment in the checkout page is definitely not gonna help soothe anti trust concerns. Well played Epic Games! https://twitter.com/...
@jsnell Jason Snell on x
@reneritchie This is probably also argument one in “why Apple allowing sideloading wouldn't actually solve anything”
@jsnell Jason Snell on x
what a surprise, where's the viral video https://twitter.com/...
@stroughtonsmith Steve Troughton-Smith on x
It never ends https://twitter.com/...
@film_girl Christina Warren on x
And now Google is being sued too! God. What a great day for those of us who love drama! https://cdn.vox-cdn.com/...
@fortnitegame Fortnite on x
Fortnite Party Royale will premiere a new short: Nineteen Eighty-Fortnite. Join us at 4PM ET. https://twitter.com/...
@markgurman Mark Gurman on x
Apple's statement on removing Fortnite: https://twitter.com/...
@rvmix Atlas Remix on x
Fortnite is only available on varying Samsung devices that are capable of running the game and have GALAXY Store installed. This is the only option for mobile players left. https://twitter.com/...
@reckless Nilay Patel on x
One imagines this is the outcome @TimSweeneyEpic was looking for; you don't make this move without preparing for the consequences. Or even betting on them.
@alexeheath Alex Heath on x
another chess move by Epic: b/c Apple controls the payments relationship between iOS users and app devs Epic can't refund people for purchases they've made if the app stays banned.. so Epic is providing instructions on how to request a refund from Apple https://www.epicgames.com/…
@reckless Nilay Patel on x
BREAKING: Apple has kicked Fortnite off the App Store for bypassing the in-app payment system. Here's the full statement to us https://www.theverge.com/... https://twitter.com/...
@vicious696 Parris on x
This needed to happen, if you want Apple to amend their App Store policies it will take companies like Epic, Microsoft, Nvidia, Activison, etc to use their influence on the gaming landscape to force change I want cloud gaming, Fortnite and Call of Duty on iOS demand change 😡 http…
@shanselman Scott Hanselman on x
Good for them, this 30% thing is highway robbery https://twitter.com/... https://twitter.com/...
@lucas7yoshi @lucas7yoshi on x
Epic will maintain v13.40 for IOS users who have it downloaded, but they will not be able to update or access the new battle pass due to it being pulled from the App Store.
@neilcybart Neil Cybart on x
The new strategy for going up against the App Store: 1) Break the rules...visibly and willingly. 2) Try to garner goodwill in the press and tech punditry world. Have people focus on Washington going after Apple. 3) Rely on straw man arguments to back up your position.
@andrearene Andrea Rene on x
This is wild man. The troll Epic pulled is bit jaw dropping and only a man like Tim Sweeney, as brilliant as he is eccentric, would probably do something like it. Waiting for Tencent's response like... https://twitter.com/... https://twitter.com/...
@aydenpanhuyzen Ayden Panhuyzen on x
I quite enjoy Apple destroying their brand while making the anti-trust arguments for us! https://twitter.com/...
@imyke Myke Hurley on x
Phill Schiller right now https://twitter.com/...
@therazorededge @therazorededge on x
No xCloud and now no Fortnite. Apple seems great... https://twitter.com/...
@benedictevans Benedict Evans on x
“Daddy, I like this game. Can I buy some coins?” Looks at a credit card prompt. Long pause. Hmm. What is this app? Can I trust it? Where's the developer from? Maybe I should google them? Or I could get a burner card... A single trusted payment system is pretty good for users
@slimefiend @slimefiend on x
selling my ipad pro with fortnite still installed, $5k starting bid https://twitter.com/...
@benedictevans Benedict Evans on x
The 30% will not last. But ending the App Store model would be terrible for users and developers.
@stroughtonsmith Steve Troughton-Smith on x
Just wait till all the senators' and lawmakers' kids start asking their parents why they can't play Fortnite on iOS anymore 😂 We've seen that's about as far as their grasp on technology goes
@joshuatopolsky Joshua Topolsky on x
Apple's statement on Fortnite has a typo in it, so that should give you an idea of how prepared they were
@ballmatthew Matthew Ball on x
Note everything about this, including the riff on Apple's Think Different 1984 ad. https://twitter.com/...
@fortnitegame Fortnite on x
Epic Games has defied the App Store Monopoly. In retaliation, Apple is blocking Fortnite from a billion devices. Visit https://fn.gg/... and join the fight to stop 2020 from becoming “1984” https://twitter.com/...
@nickwingfield Nick Wingfield on x
People, when a company that specializes in stuffing easter eggs into its games comes for you, you better look out. Look at the sunglasses. @TimSweeneyEpic https://twitter.com/...
@thighsncum Thighs on x
You're assuming your fan base knows what 1984 means or it's significance. https://twitter.com/...
@__apf__ Adrienne Porter Felt on x
remarkably clever satire; Epic's marketing department deserves a raise https://www.theverge.com/...
@ibxtoycat Andrew on x
Honestly, it's a bit of a weird way to do it but I'm glad someone is finally standing up to the 30% Android and Apple take from their users, this will be interesting to follow https://twitter.com/...
@ow @ow on x
Fortnite is playing some ten dimensional chess here this is crazy 💀 https://www.theverge.com/...
@jb_firebrand @jb_firebrand on x
The App Store and Google Play take a staggering 30% revenue cut of purchases through their stores. To put that into perspective, Roblox game developers get closer to 20%. #FreeFortnite #FreeRoblox https://twitter.com/...
@michaelpachter Michael Pachter on x
Here is one reason why Epic makes billions of dollars — they are ridiculously creative (and fast) https://www.theverge.com/... via @Verge
@snazzyq Quinn Nelson on x
Epic knew exactly what was going to happen. Legal papers and even joke videos ready. Pretty amazing. I'm impressed. https://twitter.com/...
@shiraovide Shira Ovide on x
It's good to know that a video game company can run the same playbook but way cooler. https://www.theverge.com/...
@caseynewton Casey Newton on x
Pitch-perfect satire https://www.theverge.com/...
@markgurman Mark Gurman on x
Epic's Fornite has been removed from the App Store after they implemented direct payments, circumventing Apple's 30% cut.
@ballmatthew Matthew Ball on x
Wow. Epic outright promoting direct in-app payment around iOS store but in iOS apps And users collect 100% of the savings. No monetary benefit to Epic. Note: McDonalds, Starbucks, et al are ‘allowed’ to do this today - but not gaming/media cos https://www.epicgames.com/... https:…
@pkafka Peter Kafka on x
This is a very exciting standoff: Fortnite's owner directly challenging Apple's rules about in-app payments. https://twitter.com/...
@briannawu Brianna Wu on x
And...Apple yanked it from the App Store. The antitrust hearing was not even two weeks ago. 🙄 I think there was an argument in 2008 for Apple's aggressive App Store policies being better for consumers. I don't think there's a credible argument today. https://twitter.com/...
@ow @ow on x
Never thought I'd see a embedded payment flow in an iOS app. Can't wait to find out if it gets removed by Apple 🍿 https://twitter.com/...
@zhugeex Daniel Ahmad on x
As a reminder, the reason that Epic Games charges a 12% fee on its games store is because it only pays around ~5% on each transaction itself. The other ~7% is pure profit. Apple, Google, Sony, Microsoft, Nintendo etc... charge a 30% fee on game sales.
@backlon Dieter Bohn on x
Google: Android's open! Anybody can put a store on there! Competition! Also Google: Hey OnePlus, nice phone you got there, best not let anybody else install any games on there. https://www.theverge.com/...

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Epic Games files an antitrust suit against Apple, arguing the App Store is a monopoly, seeking no damages but just injunctive relief to “allow fair competition”

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