Fortnite VS Apple

On Thursday, Fortnite publisher Epic Games became embroiled in a spat with both Apple and Google over fees the tech behemoths charge developers in their respective app stores.

Long story short: Fortnite has been kicked off both the App Store and the Google Play Store after attempting to bypass the 30% fee Apple and Google charge developers. That's huge news, since the game has been downloaded over 250 million times on iOS alone.

Epic countered by filing lawsuits against both companies. It's not seeking money from either company, just that they repeal what Epic considers the companies' monopolistic practices. And it comes at a time when both Europe and the US are scrutinizing the power of Apple, Google and other tech giants.

Why did this happen?

Fortnite is a free-to-play game, meaning it's free to download and Epic makes money from in-game purchases. Players can buy V-Bucks, in-game currency, which are used to buy new outfits, weapons and skins. It's a hugely profitable business model. Fortnite generated $4.2 billion over 2018 and 2019.

But Epic has never approved of the 30% cut taken by Apple and Google on their respective app stories, so it set up a direct payment system allowing players to buy V-Bucks for cheaper through Epic, circumventing Apple and Google. When buying 1,000 V-Bucks, players were given a choice over paying $9.99 via the App Store or $7.99 through Epic.

Apple wasn't having that, so it pulled Fortnite from the App Store. Google followed hours later, although Android gamers can still download the game directly through Epic -- and if you previously downloaded it on iOS, you can still re-download it (you just won't be able to update it or play new seasons).

And now Epic is suing Apple?

It sure is.

Epic on Thursday filed a lawsuit against Apple in the North District of California court accusing Apple of anti-competitive practices for app distribution and app-related payments. It stresses it's not looking for compensation or special treatment from Apple, but for Apple to roll-back its anti-competitive practices and allow for "fair competition."

"To reach iOS users," reads Epic's filing, "Apple forces developers to agree to Apple's unlawful terms contained in its Developer Agreement and to comply with Apple's App Store Review Guidelines, including the requirement iOS developers distribute their apps through the App Store. These contractual provision unlawfully foreclose the iOS App Distribution Market to competitors and maintain Apple's monopoly."

The filing argues that Apple, in charging a 30% fee to publishers, take 10x more than companies like "PayPal, Stripe, Square or Braintree, which typically charge payment processing rates of around 3%."

Apple's full reply, in which they said the App Store is an ecosystem that benefits developers and creates a level playing field, is below.

"Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users. As a result their Fortnite app has been removed from the store. Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services.

Epic has had apps on the App Store for a decade, and has benefited from the App Store ecosystem - including the tools, testing, and distribution Apple provides to all developers. Epic agreed to the App Store terms and guidelines freely and we're glad they've built such a successful business on the App Store. The fact that their business interests now lead them to push for a special arrangement does not change the fact that these guidelines create a level playing field for all developers and make the store safe for all users. We will make every effort to work with Epic to resolve these violations so they can return Fortnite to the App Store."