Apple employee testifies that the company made at least 100 million from Fortnite
Apple employee testifies that the company made at least 100 million from Fortnite

The ongoing trial of Epic against Apple continued today with interesting statements from Michael Schmid, head of business development for games in the App Store. Bloomberg reported today that Schmid said the game earned $ 100 million in commissions in the two years before Apple kicked Fortnite from the App Store last year Apple. Schmid would not provide an exact dollar amount and would not indicate whether Apple’s commission earned over $ 200 million, which means it would be “inappropriate” for him to respond.
The game was removed from the App Store after Epic created its own in-app payment platform for Fortnite players to be used when purchasing currency for the game. This violated Apple’s own rules and led to the game being excluded from the iOS app storefront.

Apple claims it has raised at least $ 100 million over a 30-month period by hosting Epic Games’ Fortnite on the App Store.

Fortnite users spent nearly $ 1.2 billion on Fortnite purchases made through the App Store last year, according to app analyzer Sensor Tower. Apple’s 30% cut on that revenue totaled approximately $ 354 million. Epic tries to show that Apple is making outrageously high profits on the App Store to prove that Apple is a monopoly.

Schmid, who ran Apple’s dealings with Fortnite developer Epic Games, confirmed his previous comments on the amount Apple spent promoting the game. Schmid reiterated today that Apple spent $ 1 million on the App Store marketing Fortnite in the past 11 months. Epic attorney Lauren Moskowitz described the ratio of the amount of money Apple received from the game to the $ 1 million it spent promoting Apple as “good business” for Apple.

The amount of money Apple has raised through in-app purchases from Fortnite players over the past 30 months has been at least $ 100 million. But that’s little potatoes compared to the $ 22 billion Apple received from App Store commissions in the last year alone.

Apple CEO Tim Cook is set to testify on Friday as the trial ends next week

Other companies that are closely following the lawsuit include Netflix and Spotify, both of which have had very public battles with Apple over what is known as the Apple Tax.

Friday will be a big day in the courtroom as Apple CEO Tim Cook takes a stand. That news came after the judge approved Apple’s motion to have the 60-year-old executive sworn in as the first witness on Friday. That is the day Apple is expected to close its case, and both companies should come up with their final arguments on Monday.

With the Epic v Apple case being negotiated as a banking process, there is no jury and the final decision will be made by Judge Yvonne Gonzales Rogers. On Friday, Apple’s co-founder, the late Steve Jobs, will likely be mentioned as a testimony. Epic’s legal team has mentioned several times that Jobs originally thought the App Store wasn’t going to make as much money for Apple when it first launched it in July 2008.

But as we now know, the App Store has become a real money maker for Apple. Epic may be trying to show that Apple had to turn to monopoly behavior to make the App Store what it is today. Based on publicly published figures and statements from Apple colleague Phil Schiller, Apple has raised at least $ 20 billion by June 2017, which is not bad considering Jobs’ tepid forecast for the App Store in 2008.

Whenever Judge Gonzales Rogers makes her decision, it inevitably has far-reaching implications for the entire mobile hardware and software community.


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