One of the things that affect everyone, regardless of background and interest, is the price tag on products and services that we purchase. While they are regulated extensively in the outside world, the development of the internet was so quick that laws couldn’t quite catch up. Recently, we got the potential conclusions of two cases that could shape the future of online store economics involving Epic against Apple and Google separately.
Apple has blocked your ability to update Fortnite on the App Store, and has said they will terminate our ability to develop Fortnite for Apple devices. As a result, Chapter 2 – Season 4 (v14.00) will not release on Apple devices on August 27.
More info: https://t.co/O1bgKgkZCp
— Fortnite (@FortniteGame) August 26, 2020
As a consumer, one should know that a monopoly of one company spells bad news for the market. Simply put, if a company doesn’t have competitors in the market, they hold the monopoly of the market. A company having a monopoly in the market also means they can increase prices since no other brand can offer the same product or service.
In digital markets specifically, the App Store and Google Play have created a 30% revenue cut. The Epic Games Store was released as an alternative to Steam on PC, asking for a lower cut for this same issue. However, it is different for smartphones since there’s no real alternative. When Epic Games tried to release Fortnite with alternative payment, it immediately got banned, which started both the Epic vs Apple and the Epic vs Google cases.
Epic vs Apple
The judges found that while Apple certainly had considerable power, it wasn’t enough to prove it was a monopoly. They did, however, rule that Apple stop their anti-steering policies forbidding developers from even mentioning lower prices on alternatives. An example of that is if you buy, let’s say, a Twitch subscription on PC instead of the app, you avoid the fee.
The latest appeals on the decision were denied in January 2024 at the US Supreme Court. Apple meanwhile removed their prohibition on steering but is still asking for 27% of revenue made this way. Things are not like that everywhere. Epic Games announced that Fortnite on mobiles will return on iOS devices for European users after Apple announced they’ll allow third-party storefronts to comply with the EU Digital Markets Acts.
Remember Fortnite on iOS?
How bout we bring that back.
Later this year Fortnite will return in Europe on iOS through the @EpicGames Store.
(shoutout DMA – an important new law in the EU making this possible). @Apple, the world is watching. pic.twitter.com/VdHWTe8i1c— Fortnite (@FortniteGame) January 25, 2024
Epic vs Google
Perhaps counter-intuitively, you can have alternatives on Android, such as Samsung’s Galaxy Store, so the case of Epic against Google had a very different judgment than with Apple. Many factors played into it, but the fact that alternatives can exist worked against Google.
Related story: PUBG, Fortnite and the Lawsuit in Between
Turns out — perhaps in fear of more publishers finding an alternative like Epic — Google allegedly set up deals with many publishers to keep their apps, some at lower revenue cuts. They even deleted emails potentially relevant to the case. The judges found Google guilty of all counts. Epic Games rejoiced, releasing a statement saying this is a win for all developers and consumers. However, it was cut short as Google settled the jury State Attorney General for a much lower antitrust payout. Epic stated they did not find the settlement to address the core issue.
Photo credit: The feature image is symbolic and has been done by Christopher Isak with Midjourney for TechAcute.
Source: AppleInsider (Malcolm Owen) / Epic Games / Epic Games
