Apple Inc and Alphabet Inc's Google on Thursday removed popular video game "Fortnite" from their app stores for violating the companies' in-app payment guidelines, prompting developer Epic Games to file federal antitrust lawsuits challenging the two companies' rules.
Apple and Google cited a direct payment feature rolled out on the Fortnite app earlier on Thursday as the violation.
Epic sued in U.S. court seeking no money from Apple or Google but rather injunctions that would end many of the companies' practices related to their app stores.
"Apple has become what it once railed against: the behemoth seeking to control markets, block competition, and stifle innovation. Apple is bigger, more powerful, more entrenched, and more pernicious than the monopolists of yesteryear," Epic said in its lawsuit, filed in the Northern District of California.
Epic also attacked Apple on social media, launching a campaign with the hashtag #FreeFortnite, urging players to seek refunds from Apple if they lose access to the game, and creating a parody of Apple's famous "1984" television ad.
In the parody, which quickly garnered hundreds of thousands of views, a female Fortnite fighter hurls a unicorn-shaped club to smash a screen on which an Apple-headed character speaks of "the anniversary of the platform unification directives."
Apple takes a cut of between 15% and 30% for most app subscriptions and payments made inside apps, though there are some exceptions for companies that already have a credit card on file for iPhone customers if they also offer an in-app payment that would benefit Apple. Analysts believe games are the biggest contributor to spending inside the App Store, which is in turn the largest component of Apple's $46.3 billion-per-year services segment.
In a statement, Apple said Fortnite had been removed because Epic had launched the payment feature with the "express intent of violating the App Store guidelines" after having had apps in the store for a decade.
"The fact that their (Epic) 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," Apple said in a statement.
Google also removed "Fortnite" from its Play Store, but did not immediately respond to a request for comment on the lawsuit. "However, we welcome the opportunity to continue our discussions with Epic and bring Fortnite back to Google Play," Google spokesman Dan Jackson said in a statement. Jackson said Epic had violated a rule requiring developers to use Google's in-app billing system for products within video games.
Apple and Google were among the major American technology companies to come under anti-competition scrutiny in a hearing before lawmakers last month. During the hearing, Apple Chief Executive Tim Cook argued that Apple is not anti-competitive because it does not have majority market share in any markets where it operates, including mobile phones, where devices powered by Alphabet Inc's Android have greater market share.
Epic's lawsuit, however, argues that app distribution and in-app payments for Apple devices constitute their own distinct market for anti-competition purposes because Apple users rarely leave its "sticky" ecosystem, according to Epic's filing. Epic's free-to-play battle-royal videogame "Fortnite" has reached massive popularity among young gamers since its launch in 2017, and competes with Tencent Holdings' "PlayerUnknown's Battlegrounds". The title's removal from the App Store means that new players will not be able to download it and that exiting players cannot receive updates, but the game should continue to work on devices where it is already installed.
Epic Games does not disclose how many iOS users "Fortnite" has. Many fans play the game primarily on PCs or gaming consoles while using their mobile phones as a backup, but iPhone users generate far more revenue for Epic.
In both Apple's App Store and Google's Play Store, "Fortnite" had about 2 million downloads in July 2020, according to mobile analytics firm SensorTower. But Apple users spent about $34 million while Android users spent only $2 million, according to SensorTower data.
Because Android functions differently from iOS, users can still download "Fortnite" from Epic's website and other non-Google stores such as the one run by Samsung Electronics Co Ltd and install it on their devices, Epic said in a blog post earlier on Thursday.
"Epic is not seeking any monetary relief, but rather only an order enjoining Google from continuing to impose its anti-competitive conduct on the Android ecosystem," it said in its lawsuit.
In a statement, Spotify Technology SA, a streaming music rival to Apple that has filed an antitrust complaint against the iPhone maker in Europe, applauded Epic's move.
"Apple's unfair practices have disadvantaged competitors and deprived consumers for far too long," Spotify said.
Reuters
Fri Aug 14 2020
An attendee stops to text next to Epic Games Fortnite sign at E3, the annual video games expo revealing the latest in gaming software and hardware in Los Angeles, California, U.S., June 12, 2019 - REUTERS/Mike Blake
WCK sambung misi bantuan di Gaza
Operasi itu disambung sebulan selepas tujuh pekerja badan amal itu terbunuh dalam serangan udara Israel.
Mesyuarat Khas WEF: Dunia perlukan persaingan sihat dalam transisi ke Orde Baharu - Menteri Luar Arab Saudi
Dunia memerlukan persaingan sihat dalam transisi daripada Orde Dunia Lama kepada Orde Baharu.
Niaga AWANI: Jiwa SME: Permintaan daun moringa meningkat, jadi tumpuan luar negara
Berdasarkan laporan Vodus Market Research, sebuah firma penyelidikan dan analisis data pasaran dalam talian, kira-kira 71 peratus penduduk di negara ini mengambil suplemen pada 2021.
Nilai pasaran suplemen negara juga menunjukkan peningkatan ketara dalam tempoh 2014 hingga 2019, iaitu daripada RM2.07 bilion kepada RM3.1 bilion. Angka itu dijangka terus meningkat pada masa akan datang.
Nilai pasaran suplemen negara juga menunjukkan peningkatan ketara dalam tempoh 2014 hingga 2019, iaitu daripada RM2.07 bilion kepada RM3.1 bilion. Angka itu dijangka terus meningkat pada masa akan datang.
Niaga AWANI: FBM KLCI mencapai paras tertinggi walaupun ditengah cabaran Ringgit
Indeks FTSE Bursa Malaysia KLCI meningkat sebanyak 8.28% walaupun nilai matawang menurun sebanyak 3.79% berbanding dollar Amerika Syarikat (AS). Adakah trend ini akan berterusan sehingga bulan Mei akan datang? Kupasan lanjut bersama Ketua Penyelidikan dan Penasihat Kekayaan, Pengurus Portfolio, UOB Kay Hian Wealth Advisors, Mohd Sedek Jantan.
Niaga AWANI: Ringgit dijangka sekitar 4.77 berbanding dolar AS minggu ini
Pengarah Urusan SPI Asset Management Stephen Innes berkata ini bagaimanapun bergantung kepada reaksi pasaran bon global memandangkan ramai peniaga memberi tumpuan terhadap pelarasan oleh Rizab Persekutuan AS (Fed).
Mustapa Mohamed terima anugerah daripada kerajaan Jepun
Mustapa dianugerahi Grand Cordon of the Order of the Rising Sun daripada Kerajaan Jepun atas sumbangan beliau dalam hubungan Jepun-Malaysia.
Niaga AWANI: Bursa Malaysia dijangka diniagakan dalam jajaran kecil minggu ini
Naib Presiden Penyelidikan Ekuiti Rakuten Trade Sdn Bhd, Thong Pak Leng berkata beliau meramalkan paras sokongan segera pada 1,555, diikuti dengan 1,545.
Niaga AWANI: Cabaran jurang negara kaya dan membangun
Editor Astro AWANI, Najib Aroff menemu bual Mirek Dusek yang merupakan Pengarah Urusan, World Economic Forum (WEF) berkait fokus serta tumpuan Mesyuarat Khas WEF serta jurang negara kaya dan membangun.
AWANI Pagi: Sokongan & peluang pekerjaan untuk komuniti Autistik
Sempena sambutan Bulan Autisme Sedunia pada April, ikuti diskusi bersama Beatrice Leong, Autistik, Aktivis dan Pengasas Persatuan Kesejahteraan Autisme mengenai ekosistem sokongan untuk pekerjaan individu autistik di Malaysia.
Letupan bom Sungai Golok: Penduduk Rantau Panjang turut rasai gegaran
Selain letupan seorang saksi mendakwa turut mendengar insiden berbalas tembakan di kawasan berkenaan.
Pengesahan pembayaran Google Play Store kelak akan buang sokongan kata laluan
Google dilihat akan membuang sokongan kata laluan bagi menggalakkan pengguna mengesahkan pembayaran dengan sistem biometri.
Bukan hanya Apple, 'spyware' juga beri risiko kepada pengguna Android
Teknologi yang diguna pakai bagi pembangunan 'spyware' bukanlah seperti virus biasa, yang mampu disekat oleh aplikasi antivirus.
Find My Device oleh Google bakal berfungsi seakan Apple Find My tidak lama lagi
Sistem baharu ini akan menggunakan peranti Android yang aktif di sekeliling pengguna sebagai nod pengesanan seperti mana dilakukan Apple.
Truecaller kini menghalang panggilan spam dengan AI
Truecaller adalah aplikasi panggilan telefon yang dikenali ramai. Ini kerana Truecaller telah membantu ramai orang membanteras panggilan spam.
Rekaan Epic Game Store diperlihatkan - Gedung aplikasi untuk Android dan iOS
Epic masih berperang dengan Apple atas tidak berpuas hati terhadap peraturan gedung aplikasi yang ditetapkan.
WhatsApp uji ciri mesej suara ke transkrip untuk Android pula
Ciri ini masih dalam pembangunan dan ia mungkin akan tiba dalam masa terdekat.
Google I/O 2024 akan berlangsung pada 14 Mei
CEO Google, Sundar Pichai akan memberi ucap tama di Shoreline Amphitheater.
Berita antarabangsa pilihan sepanjang hari ini
Antara pelbagai berita luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
Apple mudahkan pengguna iPhone pindah ke Android hujung tahun ini
Proses meninggalkan iPhone untuk berpindah ke Android akan dipermudahkan menjelang penghujung 2024 atau awal 2025.
Windows 11 henti sokong aplikasi Android bermula 2025
Aplikasi yang telah dipasang akan boleh terus digunakan.