Apple is not content in the app store with a small slice of app revenue – Fortnite is demanding fairness in court


Apple and known for its Fortnite game, among others Epic Games the torsion began last year when Epic incorporated into its game its own payment system that routed player payments directly to Epic, without passing through Apple. This violated Apple’s app store terms, so Fortnite was kicked out of the App Store and Epic responded with a challenge.

It was a calculated campaign that Epic wants to get Apple to cut its slice from its app store sales.

Epic and Apple’s litigation in the United States begins today. Epic accuses Apple of abusing its market position. At the center is a slice of Apple that it takes from purchases made in its app store, as well as purchases made within apps.

Under the terms of the app store, Apple will take a 15 or 30 percent slice of all in-app payments and app prices. The terms require that internal purchases must be made through Apple, meaning that, in effect, Apple forwards payments to developers after taking its own slice.

Documents submitted for litigation have already been matched with Apple App Store figures. According to an Epic witness, based on Apple documentation, the App Store’s EBITDA in 2018 was 74.9 percent and in 2019 77.8 percent.

Apple has challenged the expert’s calculations and told The Vergelle outright waiting to get the case open in court.

Non-Epic have also criticized Apple’s stake being too high. BBC: n mukaan for example, Spotify and Tile have considered the division unfair.

Also Google takes 30% of its in-app sales. Epic also experimented with in-game trading beyond the app store on Android, as a result of which Google also kicked Fortnite out of its app store.

Apple has justified app store charges by, among other things, maintaining an app store and screening apps for malware, for example. Both the App Store and the Google Play Store have been justified as safe ways for the user to get apps.

In addition, Apple says the 30 percent slice is the industry standard in the gaming world as well, and that a similar share goes to the store operator on Steam, as well as PlayStation and Xbox stores, among others.

Apple says its solution is fair to small developers. According to the company, 83 percent of apps and 76 percent of games are available from the app store for free, so developers don’t pay to distribute them either.

Apple also has a two-tier reward system, and the company says most developers pay a lower, 15 percent share. Eligible for the lower share are developers selling for less than $ 1 million as well as ongoing orders that have been running continuously for at least a year.

A settlement of the lawsuit between Apple and Epic is expected in late May. In addition to pressure from developers, regulators across the EU have begun to suspect Apple of abusing its market position, so regardless of the court’s ruling, the company may face a forced change in its reward system.


Source: Tivi by www.tivi.fi.

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