Apple Inc and Alphabet Inc's Google on Thursday removed popular video game "Fortnite" from their app stores for violating the companies' in-app payment guidelines, prompting developer Epic Games to file federal antitrust lawsuits challenging the two companies' rules.
Apple and Google cited a direct payment feature rolled out on the Fortnite app earlier on Thursday as the violation.
Epic sued in U.S. court seeking no money from Apple or Google but rather injunctions that would end many of the companies' practices related to their app stores.
"Apple has become what it once railed against: the behemoth seeking to control markets, block competition, and stifle innovation. Apple is bigger, more powerful, more entrenched, and more pernicious than the monopolists of yesteryear," Epic said in its lawsuit, filed in the Northern District of California.
Epic also attacked Apple on social media, launching a campaign with the hashtag #FreeFortnite, urging players to seek refunds from Apple if they lose access to the game, and creating a parody of Apple's famous "1984" television ad.
In the parody, which quickly garnered hundreds of thousands of views, a female Fortnite fighter hurls a unicorn-shaped club to smash a screen on which an Apple-headed character speaks of "the anniversary of the platform unification directives."
Apple takes a cut of between 15% and 30% for most app subscriptions and payments made inside apps, though there are some exceptions for companies that already have a credit card on file for iPhone customers if they also offer an in-app payment that would benefit Apple. Analysts believe games are the biggest contributor to spending inside the App Store, which is in turn the largest component of Apple's $46.3 billion-per-year services segment.
In a statement, Apple said Fortnite had been removed because Epic had launched the payment feature with the "express intent of violating the App Store guidelines" after having had apps in the store for a decade.
"The fact that their (Epic) 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," Apple said in a statement.
Google also removed "Fortnite" from its Play Store, but did not immediately respond to a request for comment on the lawsuit. "However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play," Google spokesman Dan Jackson said in a statement. Jackson said Epic had violated a rule requiring developers to use Google's in-app billing system for products within video games.
Apple and Google were among the major American technology companies to come under anti-competition scrutiny in a hearing before lawmakers last month. During the hearing, Apple Chief Executive Tim Cook argued that Apple is not anti-competitive because it does not have majority market share in any markets where it operates, including mobile phones, where devices powered by Alphabet Inc's Android have greater market share.
Epic's lawsuit, however, argues that app distribution and in-app payments for Apple devices constitute their own distinct market for anti-competition purposes because Apple users rarely leave its "sticky" ecosystem, according to Epic's filing. Epic's free-to-play battle-royal videogame "Fortnite" has reached massive popularity among young gamers since its launch in 2017, and competes with Tencent Holdings' "PlayerUnknown's Battlegrounds". The title's removal from the App Store means that new players will not be able to download it and that exiting players cannot receive updates, but the game should continue to work on devices where it is already installed.
Epic Games does not disclose how many iOS users "Fortnite" has. Many fans play the game primarily on PCs or gaming consoles while using their mobile phones as a backup, but iPhone users generate far more revenue for Epic.
In both Apple's App Store and Google's Play Store, "Fortnite" had about 2 million downloads in July 2020, according to mobile analytics firm SensorTower. But Apple users spent about $34 million while Android users spent only $2 million, according to SensorTower data.
Because Android functions differently from iOS, users can still download "Fortnite" from Epic's website and other non-Google stores such as the one run by Samsung Electronics Co Ltd and install it on their devices, Epic said in a blog post earlier on Thursday.
"Epic is not seeking any monetary relief, but rather only an order enjoining Google from continuing to impose its anti-competitive conduct on the Android ecosystem," it said in its lawsuit.
In a statement, Spotify Technology SA, a streaming music rival to Apple that has filed an antitrust complaint against the iPhone maker in Europe, applauded Epic's move.
"Apple's unfair practices have disadvantaged competitors and deprived consumers for far too long," Spotify said.
Reuters
Fri Aug 14 2020
An attendee stops to text next to Epic Games Fortnite sign at E3, the annual video games expo revealing the latest in gaming software and hardware in Los Angeles, California, U.S., June 12, 2019 - REUTERS/Mike Blake
Ops Samba 2.0: Ketirisan akibat penyeludupan di Kargo KLIA cecah RM2 bilion - KP SPRM
Jumlah ketirisan akibat kegiatan sindiket penyeludupan babitkan beberapa anggota Jabatan Kastam Diraja Malaysia di Kargo KLIA mencecah RM2 bilion bagi tempoh tiga tahun lepas.
Pembinaan Projek LRT Laluan Mutiara disasarkan bermula tahun ini
Kata Menteri Pengangkutan Anthony Loke, pelaksanaan keseluruhan projek dijangka memerlukan tempoh masa lebih kurang enam tahun dan disasarkan beroperasi pada tahun 2030.
Pegawai kanan polis lindungi kegiatan haram tidak bergerak solo - SPRM
Pegawai kanan polis yang ditahan kerana menerima suapan bagi melindungi kegiatan haram di ibu negara baru-baru ini berkemungkinan besar tidak menjalankan aktiviti itu secara solo.
Sumbangan Ahmad Rejal tinggal kesan mendalam dalam dunia kewartawanan negara - Anwar
Anwar menyifatkan sumbangan Allahyarham Datuk Ahmad Rejal Arbee Mohamed Isa Arbee meninggalkan kesan mendalam dalam dunia akhbar dan kewartawanan di Malaysia.
Tiada ‘free lunch’ untuk penambahan tol
Timbalan Menteri Kerja Raya, Datuk Seri Ahmad Maslan berkata keputusan untuk tidak menambah tol menjelang sempena Hari Raya Aidilfitri adalah muktamad.
Kontrak pembinaan jajaran LRT dari KOMTAR ke Penang Sentral melalui tender terbuka
Jelas Menteri Pengangkutan Anthony Loke strategi itu bertujuan menjana hasil bukan tambang (non fare revenue) tambahan yang penting untuk dilaburkan balik dalam penyelenggaraan LRT Pulau Pinang pada masa hadapan.
PADU: Lebih 9 juta telah daftar
Pendaftaran Pangkalan Data Utama (PADU) meningkat kepada 9.24 juta setakat Khamis.
Tiada layanan istimewa kepada Najib - Penjara
Ketua Pengarah Jabatan Penjara, Datuk Nordin Muhammad menegaskan tiada sebarang layanan istimewa diberikan kepada mana-mana individu termasuk Bekas Perdana Menteri, Datuk Seri Najib Tun Razak di penjara.
[TERKINI] SPRM percaya pegawai polis ditahan tidak bergerak solo
Pegawai kanan polis yang ditahan kerana menerima suapan bagi melindungi kegiatan haram di ibu negara mungkin tidak menjalankan aktiviti secara solo.
Agenda AWANI: Desak Israel patuh resolusi gencatan senjata UNSC
Sejauh mana boleh kita menjangkakan Israel akan patuh desakan untuk keamanan yang berkekalan di Gaza meskipun resolusi gencatan senjata UNSC sementara dalam tempoh dua minggu sahaja?
Diskusi 9 malam.
Diskusi 9 malam.
Truecaller kini menghalang panggilan spam dengan AI
Truecaller adalah aplikasi panggilan telefon yang dikenali ramai. Ini kerana Truecaller telah membantu ramai orang membanteras panggilan spam.
Rekaan Epic Game Store diperlihatkan - Gedung aplikasi untuk Android dan iOS
Epic masih berperang dengan Apple atas tidak berpuas hati terhadap peraturan gedung aplikasi yang ditetapkan.
WhatsApp uji ciri mesej suara ke transkrip untuk Android pula
Ciri ini masih dalam pembangunan dan ia mungkin akan tiba dalam masa terdekat.
Google I/O 2024 akan berlangsung pada 14 Mei
CEO Google, Sundar Pichai akan memberi ucap tama di Shoreline Amphitheater.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
Apple mudahkan pengguna iPhone pindah ke Android hujung tahun ini
Proses meninggalkan iPhone untuk berpindah ke Android akan dipermudahkan menjelang penghujung 2024 atau awal 2025.
Windows 11 henti sokong aplikasi Android bermula 2025
Aplikasi yang telah dipasang akan boleh terus digunakan.
Curi kandungan: Dua perusahaan bayar ganti rugi RM55,000 kepada Astro
Dua perusahaan bersetuju membayar ganti rugi berjumlah RM55,000 kepada Astro kerana menayangkan kandungan berhak cipta Astro kepada orang ramai di premis perniagaan tanpa kebenaran atau lesen Astro.
Pengguna Android di Singapura akan dihalang pasang aplikasi secara 'sideloading'
Singapura akan menjadi negara pertama yang diuji dengan ciri seumpamanya, sebelum ia dilihat sama ada diperluaskan ke negara lain atau sebaliknya.
X mula perkenal ciri panggilan suara dan video untuk pengguna Android
X (dulu dikenali sebagai Twitter) kini telah mula memperkenalkan ciri panggilan suara antara pengguna aplikasi berkenaan, pada platform Android.