The lawsuit between Epic and Apple regarding the online shooter Fortnite on iOS is intensifying. Apple has now filed a counterclaim against Epic, stating that they have breached the contract. Apple is seeking damages and claims that Epic is portraying itself as a modern Robin Hood, but it is all about the money.
This is the situation:
- Epic is making a lot of money with Fortnite in the App Store, the shooter is popular on iOS. But Apple takes 30% of the revenue. Epic did not like that. They tried to circumvent this fee by offering their own payment methods for iOS.
- As a result, Apple removed Fortnite from the store.
- Epic anticipated this and launched a media campaign and lawsuit against Apple. Epic portrayed Apple as a greedy corporation exploiting its market power. They are demanding “#FreeFortnite”: Apple should concede and re-submit Fortnite to the App Store.
They just don’t want to pay for our service
This is now Apple’s response: Apple has filed a 65-page counterclaim in the District Court of California (via courtlistener). It states:
Epic’s lawsuit is simply a dispute over money. Even if Epic presents itself as a modern Robin Hood, in reality, they are a multi-billion dollar company that simply does not want to pay for the incredibly high value they derive from the App Store.
Statement from Apple’s lawsuit
According to Apple, Epic Games has earned more than 600 million US dollars through the App Store.
Cold-blooded attack on the App Store from the shadows
This is Apple’s standpoint: Apple argues that Epic wants to achieve special treatment and circumvent the rules:
They come with the idea that Epic is too successful to adhere to the rules that apply to everyone else […]
From Apple’s counterclaim
The way Epic proceeded against the App Store was “cold-blooded” and “nothing more than theft”.
Epic has utilized the advantages of the App Store like no other company in the last two years:
- Epic has accessed all possible technical assists and programs and reached millions of customers through the App Store.
- Apple has also promoted every new season of Fortnite for free and sent friendly tweets.
- They even rented a billboard in Times Square when Fortnite held an in-game concert.
Apple accuses Epic of attacking from behind. Back in April 2020, Epic managers thanked Apple for their support. But at the same time, they employed a legion of lawyers and PR people to plan a sneaky attack on the App Store.
They launched the attack at 2:00 AM and sent an email stating that they would no longer adhere to Apple’s restrictions. Shortly thereafter, the “predatory function” went live with a hotfix.
This hotfix is referred to by Apple as the “Trojan Horse”. Just as the horse overcame the walls of Troy, Epic bypassed Apple’s review process. Through the hotfix, they introduced the ability for App Store users to pay directly to Epic, completely excluding Apple from the process.
This is what Apple demands: Apple is asking the court to declare that Epic is guilty of violating various laws in California by breaching their contract and engaging in unfair competition. The court should now award Apple damages.
Additionally, the court should prohibit Epic from continuing to offer unauthorized payment methods for iOS apps.
Is it about money or principle?
This is what lies behind it: This is the fight for the “narrative”. The facts are clear. No one denies them. The question is how to present it:
- Apple says: It’s only about money. Epic is greedy. This is purely a business decision.
- Epic says: It’s not at all about money, but about principle. The 30% margin is too high, it harms the studios and there is not enough money for development. We need to change the framework conditions.
Another argument against supporting #FreeFortnite is “this is just a billion dollar company fighting a trillion dollar company about money”. But the fight isn’t over Epic wanting a special deal, it’s about the basic freedoms of all consumers and developers.
— Tim Sweeney (@TimSweeneyEpic) August 14, 2020
The head of Epic, Tim Sweeney, said in a tweet: It’s not about a company worth billions against one worth trillions, but about freedom for all customers and developers.
Apple, on the other hand, portrays Epic as a robber who operates at night and maliciously commits their heist without warning by releasing this alternative payment method at 2:00 AM.
They frame Epic as ungrateful and arrogant. Instead of thanking Apple for allowing them to earn so much money through their service, they now want special treatment and act sneakily and wrongly.
In the complaint, the head of Epic, Mr. Sweeney, is referred to as someone who acts “self-righteously” and in “self-interest.” They fired the first shots. This cannot go unanswered.
The battle between Epic and Apple has been occupying the gaming world since mid-August. Epic also launched the attack against Apple in the game Fortnite with a video clip and set a social media campaign in motion.
In doing so, Epic referenced Apple’s famous commercial “1984”. What lies behind it has been explained here:
What lies behind Fortnite 1984, the attack on Apple and #FreeFortnite
