The dispute between Epic Games and Apple and Google’s app outlets is the result of a calculated and timely attack through the author of Fortnite, with the aim of converting the balance of forces existing in this environment, which he considers to be contrary to his interests.
The context will be familiar to many readers: Epic Games, partly owned by Chinese giant Tencent, and the creators of the most successful game progression platform, Unreal Engine, as well as the very popular Fortnite, have established a direct payment approach so that their users can make purchases in their games ignoring Apple’s payment gateways and GoogleArray allowing them the commissions apple and Google charge for those transactions. In addition, Epic has lowered the costs of its products. The problem? Basically, this type of direct payment method is expressly prohibited through app outlets and, as a result, Apple and Google have automatically ejected Fortnite from their App Store and Play Market.
In reaction to this movement through Apple and Google, provoked and expected through Epic, the company posted a video, evidently ready in advance, in which he parodies the Announcement of Apple that aired the 1984 Super Bowl, considered by some to be the most productive. place in history.
In addition, Epic is suing Apple and Google for violating antitrust laws. This carefully crafted decision, involving some of the best-known and most prestigious antitrust attorneys, mobilizes Fortnite’s 350 million international players opposed to Apple and Google in a crusade organized around the hashtag #FREEFORTNITE, presenting themselves as the victim struggling to improve the life of the app. Promoters (the corporate has no easy economic damage or a greater remedy for itself).
Epic carefully timed the measure: two weeks after the heads of primary-generation corporations gave the impression to the U.S. Congress, and with the Justice Department in charge of the case, a mountain of applicable documents. The move also comes at a time when much of the generation industry is outraged by Apple’s plans to make adjustments to iOS 14, which could seriously damage the advertising revenue of many corporations.
There are some precedents here: in 2018, Epic introduced a similar offensive opposed to the Steam gaming platform, which included the launch of its own platform, Epic Games Store for Windows and MacOS, with a 12% Steam commission. In 2019, Spotify sued Apple in the European Union for a 30% commission while competing with Apple Music on favorable terms. These would possibly have a good influence on the judges who oversee the opposing lawsuit to Google and Apple in favor of Epic.
This time, it is unlikely that this will be resolved outside the courts. Epic seems to be seeking credit for the unpopularity of tech giants among the public and lawmakers, reflecting the deep-rooted ideals of its founder, Tim Sweeney, that they are abusing their position.
Of course, Apple and Google will protect the policies of their app’s outlets by pointing out the security challenge imaginable for users if apps set up their own payment gateways. That said, protecting user protection while taking a third of what developers do and being virtually the only option as a distribution channel will be a complicated business.
Epic is a leader in the video game industry, but it’s not a game and you want to be followed closely: it will probably end up having far greater repercussions than it initially appeared.
Professor of innovation at the EI Business School since 1990, and now, school of piracy as a senior for virtual transformation at IE University. BSc (University of
Innovation teacher at EI Business School since 1990, and now, piracy school as a senior for virtual transformation at IE University. BSc (Universidade de Santiago de Compostela), MBA (Instituto de Empresa) and Ph.D. Management Information Systems (UCLA).