Epic, the maker of the hugely popular Fortnite game, has gone to federal court to complain about the high fees and strict rules imposed by Apple in its App Store. Going to the App Store is currently the only way iOS users can get Fortnite and other Epic titles. Apple requires developers to use its own proprietary payment system to pay for apps and games, and it charges big developers like Epic 30% of their in-app revenue to do so. Apple says it uses the money to provide an easy-to-use and well-organized app store experience, invest in the platform and tools exclusive to iOS developers, as well as offer strong privacy and security measures to prevent customers from being exposed to financial fraud and apps containing malware. Epic’s case against Apple is highly nuanced and filled with gray areas. It has, to quote The Dude from the Big Lebowski, “a lotta ins, lotta outs, lotta what-have-you’s.” There are strengths and weaknesses to both sides’ main arguments. And with all antitrust cases, the burden lies with the plaintiff—in this case, Epic—to prove Apple’s actions harm competition and ultimately harm the consumer. These are the main points of the case so far, and why I think Apple has an edge over Epic as the trial heads into its final week. Tax or Commission? Apple argues that its 30% commission is the industry standard for digital transactions, and that retail commissions on apps and games have historically been north of 40%. Market forces drove app store operators including Microsoft, Sony, Steam, and Nintendo to converge on that common 30% rate, but just because that is the standard doesn’t mean there isn’t room for improvement
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Why Apple will win its App Store antitrust case against Epic