Epic, the maker of the massively popular Fortnite game,
accused Apple of trapping people in its mobile device world and collecting
"outsized commission" at the App Store that serves as the only source
of digital content.
Apple countered that it has no monopoly when it comes to
digital games and that the suit is part of an effort by Epic to portray
"Apple as the 'bad guy' so that it can revive flagging interest in
Fortnite." Apple pulled Fortnite from its App Store in August of last year
after Epic released an update that dodges revenue sharing with the iPhone
maker, and the companies are now locked in a legal battle.
A trial in the case is set to begin May 3 in US Federal
court near San Francisco.
Apple chief Tim Cook as well as Epic founder and top
executive Tim Sweeney are among those expected to testify.
"Apple constructed the iOS ecosystem, using a
combination of technical and contractual means, to restrict distribution of iOS
apps, foreclosing competition, harming the competitive process, and harming
consumers," Epic contended in a filing.
The iOS software runs Apple mobile devices.
The App Store is home to more than 1.8 million apps
worldwide, generating billions of Dollars in revenue for developers since it
was launched in 2008.
People spent $70.3 billion at the App Store last year alone,
according to market tracker Statista.
Apple's commission on App Store transactions ranges from 15
percent to 30 percent, and the online shop has been part of the Silicon Valley
titan's effort to ramp up revenue from digital content and services.
Epic has called the App Store bite of transactions an
"Apple Tax" and contended that the vetting of apps there is
"cursory." Apple maintains that the commission is standard for the
market, and is warranted given the company's investments in security, privacy
and innovation.
It has argued that Epic "would like to reap the
benefits of the App Store without paying anything for them."Apple said
Epic has benefitted from the iOS ecosystem with some 130 million downloads in
174 countries, which earned Epic more than half a billion dollars, before
changing its tune and seeking "special treatment.
"The dispute comes with Apple and other tech giants
facing increased scrutiny for their dominance in various economic sectors,
allowing them to grow even as much of the economy contracts from the impact of
the coronavirus pandemic.
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