Video game developer and marketplace owner Epic Games has sued Apple Inc under ten counts of unfair restraint and monopolistic behavior.
Tense relations between Cupertino tech giant Apple Inc (NASDAQ:AAPL) and game developer and store manager Epic Games took a new turn earlier today when Apple announced that it would stop Epic’s Fortnite from being available on the App Store. The decision came following the developer’s introduction of an alternative platform for in-game Fortnite purchases, a move that violates the terms and conditions to which developers are required to agree to once they choose to enter Apple’s iOS ecosystem for the iPhone and the iPad OS ecosystem for the iPad. Following the ban, Epic Games has escalated its tussle with Apple and sued the company in the United States District Court of the Northern District of California. Epic alleges that Apple’s decision to restrict alternative software application distribution channels for iOS and its policy of restricting developers from providing alternate, non-Applemediums for in-app transactions violate the Sherman and California Cartwright Acts on a total of ten counts. 16-inch MacBook Pro Refresh Might Get 1080p FaceTime Camera, Upgraded T3 Security Chip, and More In the lawsuit, Epic argues that the two Apple policies that end up restricting application developers from introducing non-Apple payment and distribution methods on iOS end up harming three parties – application developers, application distributors and end consumers. The company believes that due to the aforementioned restrictions, distributors are unable to develop new methods of distributing applications on iOS, developers find it difficult to remain fiscally healthy due to the 30% commission charged by Apple for both in-app purchases and for sales and users are stripped of access to alternates that, according to Epic, may very well end up providing innovative services that exceed in quality from the ones used by Apple. Epic states bluntly that were Apple to remove the restriction that bars third-party application distribution on iOS, the developer would simply offer its own service for letting users download its products and conduct in-app purchases. Since the company is unable to provide these alternatives, it argues that it is ‘forced’ to charge higher in-app purchase prices due to the 30% fee charged by Apple for these transactions. Epic Games States Apple Has Little Incentive To Innovate Due To Monopolistic Practices In the suit, Epic cites its decision to offer an alternative in-app payment method in its popular game Fortnite as an example of the cost savings that consumers can gain benefit from were Apple prevented from exercising blanket control in the iOS App Store.
