Epic Accuses Apple Of Holding Developers Hostage


Epic has accused Apple Inc. (NASDAQ:AAPL) of threatening an entire ecosystem of game developers in response to the Fortnite lawsuit. This is according to the latest new filing, the game developer.

In the filings, Epic says Apple’s move to revoke on iOS support for the Unreal Engine as it cuts down on Epic’s broader loss of developer privileges. In the latest filings, the game developer has asked the court to restrain Apple from revoking access until the matter is heard and determined. In response, Apple indicated that it was implementing previously stated policies.

Fortnite ban

Apple banned Fortnite from its App Store after Epic. The game developer directed players to pay for in-game purchases using its own payment methods instead of those provided by Apple. This is against Apple’s App Store guidelines, requiring all in-game purchases to be processed through the App Store. Epic responded by filing a lawsuit against Apple, accusing the company of going against the Sherman Act.

Apple deducts 30% commission on payments done through the App Store. According to Epic, Apple’s requirement that all mobile apps come through the App Store is a monopoly. The game developer urges that developers and customers should be allowed to have alternatives.

On the other hand, Apple has stood its ground and is jealously defending its guidelines. The iPhone maker, which is valued at $2 trillion, has refused to change its business model but instead went ahead and delisted Fortnite from App Store. As if not enough, Apple is now threatening to cut off Epic from accessing its developer tools program. If implemented, this move will affect many apps that use Apple’s Unreal Engine and many consumers who use the affected apps.

The App Store was initially meant to be a win-win for Apple and app developers

When Apple unveiled App Store in 2008, it was pitched on the idea that it would mutually benefit both the company and developers. Under the arrangement, Apple would allow developers to access its users and tools and marketplace to sell their apps. App Store was meant to uplift small developers who didn’t have resources to develop and publish their apps. In return, Apple would be assured of a constantly expanding app roster and steady revenue from commissions taken from in-app purchases and the purchase price of paid apps.

Neha Gupta
Neha Gupta
Neha Gupta has cleared CFA Level 2 from CFA Institute (USA). She has worked in diverse capacities from financial research to currency trading in a span of 10 years. Neha also covers technology, finance, retail, automotive, energy and other sectors news.

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