Epic Games Challenges Mobile App Store Policies
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On August 13, 2020, Epic Games updated Fortnite — one of the world’s most widely played games, with approximately 350 million registered accounts — to offer a direct payment option that bypassed Apple’s in-app purchase system. Epic’s “Epic Direct Payment” offered Fortnite’s in-game currency (V-Bucks) at a 20 percent discount compared to the price charged through Apple’s IAP system ($7.99 versus $9.99 for 1,000 V-Bucks), where Apple’s 30 percent commission had been built into the price. Apple’s App Store Review Guidelines required all digital content purchases in iOS apps to use Apple’s in-app purchase system, with Apple receiving 30 percent (15 percent for subscriptions after the first year, for developers earning under $1M through Apple’s Small Business Program). Apple removed Fortnite from the App Store within hours of detecting the policy violation; Google removed it from Google Play the same day (though Fortnite had already been available via direct download/sideload on Android). Epic had prepared for the removal: simultaneously with the update, Epic filed a lawsuit against Apple in the US District Court for the Northern District of California, and a separate lawsuit against Google, both alleging antitrust violations. Epic also published a parody video titled “Nineteen Eighty-Fortnite” — a direct parody of Apple’s famous “1984” Super Bowl advertisement — with Fortnite characters fighting an “Apple Corporation” controlling citizens, reversing the iconic imagery to cast Apple as the monopoly rather than the liberator. Read more
