Nineteen Eighty and Fortnit announcement
Epic games
On Wednesday, Apple and Epic Games filed separate lawsuits, which they believe are key facts and legal issues ahead of an antitrust lawsuit that is set to begin in May.
Apple and Epic Games, best known for their Fortnite game, are in a legal battle last year after Epic Games tried to avoid the Apple Store’s 30% commission through a server software update that went beyond Apple Store App payment system. Apple responded by removing Fortnite from the App Store, effectively preventing iPhone users from playing the game.
Top officials from both companies are expected to testify in person in federal court in Oakland, California, in a trial that is expected to last weeks.
According to court statements, Apple executives may file, including Apple CEO Tim Cook, SVP Craig Federighi, and former head of marketing Phil Schiller. Epic Games CEO and founder Tim Sweeney is also on the trial list.
Files submitted late at night from each company are long and full of details. Below is a summary marker of how each company will plan to base its case in court:
Apple will argue that:
- Its 30% commission is essentially the same as other online software stores such as Google Play or video game console stores, and Apple’s fee has dropped over time.
- It faces competition for both the iPhone and other platforms to play games.
- Its App Store policies have led to a boom in the software industry and have resulted in greater security and safety for users.
- The App Store is a basic integrated feature of the iPhone and that using Apple payments for digital purchases is a key feature.
Epic will claim that:
- Apple is forcing consumers to pay high switching costs to stop using Apple products by blocking them.
- As Apple gained more customers and blocked them, the importance of selling software to Apple customers increased.
- Apple controls the only way to install software on an iPhone through the App Store.
- Apple uses the application review process, which manually screens individual applications for anti-competitive purposes, eliminating applications for business reasons under the pretext of security.
- Because some developers have chosen to raise the price of iPhone software because of the 30% Apple tax, it causes consumers to pay more, and Fortnite is an example.
Read Apple documents here and Epic Games documents here.