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Friday, April 16, 2021

Apple to Argue Epic Games Lawsuit, Cites Competition

Apple is expected to argue that it faces numerous sources of competition in a lawsuit brought by Epic Games saying that Apple uses “anticompetitive practices” on their App Store.

The suit filed by Epic against Apple last year in the U.S. District Court for Northern California alleges that Apple’s 15 to 30 percent commission along with their control over which apps may be installed on users phones has created a monopoly and discourages market competition. 

Epic brought the suit on Apple after attempting to implement in-app purchases on their “Fortnite” mobile game. Apple banned the game from the App store almost immediately following the update.

The case against Apple has been framed to show that the iPhone user base, with more than a billion users, is actually a completely separate market for software developers due almost entirely to Apple’s policies on the App Store. The argument is that Apple holds a monopoly on this market because they can determine who is allowed on the app store, and more importantly, who isn’t.

Epic’s suit also affirms that the commissions taken by Apple on transactions performed on their App Store are unreasonable and are only as high as they are because of the monopoly Apple holds on the store.

Apple has rejected the idea that they hold a monopoly on their App Store and are expected to cite other popular platforms like Nintendo and Microsoft’s Xbox as clear evidence that there is plenty of market competition. 

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