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"Fortnite" maker sues Apple, Google after game's removal from app stores
"Fortnite" is known for epic virtual battles between players. However, now the maker of the popular video game is fighting tech giants Apple and Google.
On August 13, "Fortnite" maker Epic Games sued Apple and Google in two separate lawsuits. It accused the two companies of "anticompetitive conduct" after both kicked the video game's app off their app marketplaces. Anticompetitive business practices are ones that prevent or reduce competition in a market. Companies compete for customers, and ideally, no company should be able to block another company from reaching or winning customers. The public should be able to choose freely between competing companies.
What happened in the video game's case? Epic Games released a feature that lets users choose how they want to pay for in-app purchases — that is, things users buy for the game, such as weapons, costumes or traps. The new feature allows users to purchase what they want through Apple's App Store or Google's Play Store, or from Epic directly. Both Apple and Google take a percent of the payments made through their stores, so Epic charges higher prices in those stores. Users who buy from Epic directly save up to 20 percent.
"Fortnite" Has 250 Million Active Accounts
Apple generally takes a cut of 30 percent of payments made in apps obtained through the App Store. Google Play Store generally takes a similar 30-percent cut.
Not long after Apple removed Epic's app early on August 13, the video game maker filed a lawsuit in federal court in Northern California. A few hours later, it filed a similar suit against Google.
"Fortnite" is one of the most popular video games in the world. Last year, Epic Games boasted the game had about 250 million active accounts a month. Since it was created, "Fortnite" has been installed 133.2 million times, and in the 30 days before the lawsuit was filed, it was downloaded 2.4 million times on the App Store.
Getting kicked off Apple's App Store means new users won't be able to download the mobile app to their phone. Users who already have it on their Apple iPhones will still be able to use the game for now, but they won't be able to update it to new versions.
Epic's suit against Apple criticizes the tech giant's payment practices. Apple, the suit claims, uses its "enormous power" to "unlawfully maintain its 100 percent monopoly" over in-app payments. Monopoly is the exclusive possession or control of a particular good or service. Having a monopoly gives a company a huge advantage, and there are laws designed to prevent companies from obtaining a monopoly through illegal means.
Apple spokesperson Fred Sainz said the company removed "Fortnite" from the store because Epic broke its rules.
"Epic enabled a feature in its app which was not reviewed or approved by Apple," he said. "They did so with the express intent of violating the App Store guidelines regarding in-app payments."
A Battle Of Words
Google removed "Fortnite" from its Play Store late August 13. However, Google Android phone users can still download "Fortnite" directly from Epic's website.
Epic's lawsuit against Google accuses that company of anticompetitive and monopolistic practices as well. Google, the suit claims is "using its size to do evil upon competitors, innovators, customers, and users in a slew of markets it has grown to monopolize."
Google spokesperson Dan Jackson said the app was removed from its Play Store for violating its policies. "For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users."
Epic's legal battle against Apple is the latest episode in a war between app developers and the tech giant. In recent years, Apple has grown more powerful because of its App Store, which controls which apps can be installed on iPhones. When businesses designed around mobile apps have proven successful, Apple has increasingly pushed into those areas. It has used its power over the App Store to give itself an advantage.
While Google is also being accused of anticompetitive practices, its restrictions are easier to get around. In addition, Apple's App Store is more profitable than Google's Play Store, because iPhone users spend more money online.
The App Store has drawn the attention of lawmakers investigating Apple and other tech giants over competition concerns. In July, Apple chief executive Tim Cook defended the App Store's 30-percent cut in front of Congress.
In recent years, as Apple has grown more powerful and competition in the smartphone industry has withered, developers have begun to fight back. However, even as companies push back, Apple has grown more aggressive in enforcing its cut of the profits. Epic Games and other companies argue that Apple's fees are artificially high because of Apple's monopoly over the App Store. They say the benefits Apple provides by maintaining the store do not merit a 30-percent fee.
Another Company Fighting Apple
Spotify, the music streaming service, has also been battling Apple.
Spotify spokesman Adam Grossberg said the company applauded Epic Games' decision to "take a stand against Apple." Apple's "unfair practices," he said, have "disadvantaged competitors" and limited choices for consumers.
Epic Games chief executive Tim Sweeney had already criticized Apple earlier this summer. The App Store's "monopoly protects only Apple profit, not device security," he said at the time.
On August 13, shortly after its app was taken down by Apple, Epic released a video that spoofed Apple's famous 1984 Super Bowl commercial attacking IBM. Back then, IBM was the giant company that dominated the computer business, and Apple was the upstart.
Now, Epic Games sees Apple as having taken IBM's place.
"Apple has become what it once railed against: the behemoth seeking to control markets, block competition, and stifle innovation," the suit reads.
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