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Is Apple's antitrust lawsuit a ray of hope for Epic Games?

TechBrunchBy TechBrunchMarch 21, 20243 Mins Read
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The Justice Department and 17 state attorneys general filed a massive lawsuit against Apple Thursday morning, accusing it of monopolistic smartphone practices. Meanwhile, Fortnite maker Epic Games has been accusing Apple's iOS App Store of antitrust violations for years, in an ongoing bitter legal battle.

Although Epic is not explicitly named in the 88-page lawsuit, the game company's complaints echo a broader discussion about the App Store's anti-competitive practices.

“Apple often enforces App Store rules arbitrarily,” the complaint states. “And we use App Store rules and restrictions to punish and restrict developers who use technologies that threaten to disrupt, disintermediate, compete with, or erode Apple's monopoly power.” I use it frequently.”

Epic's main complaint about the App Store is that developers have to transfer 30% of in-app purchases to Apple. Also, unlike Android devices, iPhones do not allow sideloading of apps. This means that Apple has control over all apps in the App Store. For nearly a decade, Epic CEO Tim Sweeney has been a vocal critic of the company's revenue declines, calling them monopolistic and predatory against small businesses. In 2020, Epic allowed Fortnite players to pay Epic directly instead of giving a cut to Apple. Apple has since removed Epic from the App Store, but four years later, we're still watching the two companies battle it out. Participate in various legal proceedings.

At the time, a judge ruled that Apple could not prevent apps from directing users to alternative payment methods, but ultimately the iPhone maker was not considered a monopoly.

Given past rulings in Apple's favor, it's surprising that this lawsuit aligns with some of Epic's complaints.

“Although Apple has reduced the taxes it collects from some developers, it still collects 30% from many app makers,” the complaint states. “Apple also makes a lot of money by charging developers to help users find their apps in the App Store, which means Apple charges developers 30 percent in the first place. I have been saying for years that this is one of the reasons why we pay taxes.”

Epic isn't the only big company to take on Apple. In January, as developers prepared for the European Union's new Digital Markets Act (DMA) to come into force, Spotify joined in the fold, calling Apple's compliance plan a “robbery” and a “complete and utter travesty.” ” he called. And in March, Apple was fined 1.84 billion euros for antitrust violations in the music streaming services market.

On Thursday, the App Fairness Coalition (CAF), which includes Epic Games, Spotify, Deezer, Proton and others, released a statement supporting the Department of Justice's action against Apple.

“With today's announcement, the Department of Justice is committed to Apple's stranglehold on the mobile app ecosystem that stifles competition and harms American consumers and developers alike,” said CAF Executive Director Rick VanMeter. We will take a strong stance against this,” he said. “The Justice Department's complaint alleges Apple's longstanding illegal practices of abusing App Store guidelines and developer agreements to jack up prices, charge exorbitant fees, degrade the user experience, and stifle competition. “The Department of Justice joins regulators around the world who recognize and are working to address the many harms caused by Apple's misconduct.”

Epic Games declined TechCrunch's request for comment. Sweeney, who is usually vocal about such issues, was reluctant on this issue.

“Between now and the end of testimony in Australia's Epic v. Apple and Google trial in Melbourne, we will be taking a break from commenting on Twitter's antitrust laws,” Sweeney said. Postedalongside a photo taken in Melbourne.





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