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Apple Pulls Fortnite from iOS App Store, Epic Games Hits Back With Lawsuit

Apple's rules requiring iOS developers to pay a 30 percent commission on in-app purchases has just sparked an antitrust legal battle with Fortnite developer Epic Games.

(Credit: Epic Games)

Apple has removed Fortnite from the iOS app store in response to Epic Games adding a direct payment option inside the multiplayer title, cutting off Apple from a slice of the revenue. 

“Today, Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users,” Apple told PCMag in a statement. “ As a result their Fortnite app has been removed from the store.”

However, Epic Games plans on fighting back with an antitrust lawsuit. Moments after the takedown, the gaming company filed a legal complaint in a US district court, claiming Apple has a monopoly with its control over the iOS app store. 

“Epic brings this suit to end Apple’s unfair and anti-competitive actions that Apple undertakes to unlawfully maintain its monopoly in two distinct, multibillion dollar markets: (i) the iOS App Distribution Market, and (ii) the iOS In-App Payment Processing Market,” reads the lawsuit.

The gaming company has also started a "Free Fortnite" campaign, which includes a video parodying Apple's famous 1984 commercial. Except in this case, Apple is now the totalitarian government.

Under the current iOS app store rules, purchases made inside any third-party app must fork over 30 percent of the revenue to Apple. However, Epic Games and other software developers have called out the practice as monopolistic because iOS apps can only be officially published through one place: Apple’s app store. As a result, app makers have criticized the 30 percent commission as an unfair "Apple tax." 

“Apple's playing field is the most uneven in the history of technology products,” claimed Epic Games CEO Tim Sweeney in an interview last month with Bloomberg. 

The tensions provoked Epic Games on Thursday to try and bypass the iOS app store rules by adding a direct payment option inside the Fortnite game. For players, there's a good reason to use it: The new “Epic direct” payment option will discount virtual items in the game by up to 20 percent compared against the standard Apple payment route. 

“By offering an alternate payment system, we're not only offering players more choice, but we're able to pass along the savings to players,” Epic Games said in a FAQ

However, Apple disagrees with critics who say the 30 percent commission is unfair. The company points out the iOS business model has helped scores of developers, including Epic Games, to reach millions of consumers and rake in revenue. 

"Epic has had apps on the App Store for a decade, and have benefited from the App Store ecosystem —including its tools, testing, and distribution that Apple provides to all developers,” Apple said. “Epic agreed to the App Store terms and guidelines freely and we’re glad they’ve built such a successful business on the App Store. The fact that their 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.”

According to Apple, Epic Games added the direct payment option without any consultation from the company. “Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services,” it said. 

Still, Apple says it’s ready to work with Epic Games to “resolve” the violations so that Fortnite can return to the iOS app store. But the lawsuit from Epic Games indicates the gaming company wants to fight the battle in court.  

“Epic is not seeking any monetary damages. Instead, Epic seeks to end Apple’s dominance over key technology markets, open up the space for progress and ingenuity, and ensure that Apple mobile devices are open to the same competition as Apple’s personal computers,” reads the company’s legal complaint, which is demanding a judge force Apple to stop its practices.

The lawsuit goes on to note by removing Fortnite from the iOS app store, Epic Games can no longer push out game updates for Fortnite players on iPhones and iPads. "Because Apple has BLOCKED your ability to update, when Fortnite Chapter 2 - Season 4 releases you will NOT be able to play the new Season on iOS," the company wrote in a separate blog post. (However, players can still enjoy the latest version of the game on other platforms, such as PlayStation 5, Xbox One and Windows PC with their account progress intact.)

Epic Games is now calling on millions of Fortnite players to protest Apple on social media. "Make your voice heard in the fight against the app tax!" the company wrote.

The gaming company also added the direct payment option in the Android version of Fortnite, which is on the Google Play Store. Like Apple, Google will take a 30 percent cut on in-app purchases. 

We’ve reached out to Google on whether the company plans on taking any action. But in the meantime, the Fortnite app remains available on the Google Play Store. 

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