The lawsuit against Epic against Apple began on Monday
Apple removed Fortnite from the App Store after Epic violated Apple’s in-app payment rules
Other companies that have complained about the so-called Apple Tax are Netflix and Spotify. The latter brought his argument to the European Union a few years ago, saying that thanks to the Apple tax of 30%, Apple Music has an advantage over Spotify and other streaming music apps, which has the additional 30% that Apple Music doesn’t have, having to cough up. ‘I don’t have to pay.
According to Epic, the obligation for third-party apps to sell their goods through the App Store and the obligation to use 30% for processing in-app payments is actually in violation of the Federal Antitrust Act, which prohibits companies from using a product or one To tie the service to the sale of someone else. The highlight of the day is epic lawyer Katherine Forrest: “When users pick up the iPhone, they are entering another world. They are tied to a closed platform where they can only download apps from Apple and every time they are buy in the app. ” a tax of 30% will be charged. “
Epic also disproved Apple’s claims that the rules Apple created for the App Store help maintain the quality and security of iOS apps. This is a claim Apple made earlier.
Both Epic and Apple scored some good points on the first day of testing
In its opening arguments, Apple stated that the 30% fee was industry-standard and that allowing apps like Fortnite to sideload their own in-app platforms could lead to security issues. Apple may have scored points with the judge when it found that Epic had never notified Apple of its in-app payment system until the day Microsoft was pre-notified.
Apple attorney Karen Dunn said during the court session on Monday, “A $ 20 billion company has decided it no longer wants to pay for Apple’s innovations. So Epic is here to demand that this court force Apple to go untested and untrustworthy to get into his app store. ” Apps – something Apple has never done. “
Apple gives the court reasons why Epic can’t win the case, alleging that the game developer is using the wrong version in its antitrust lawsuit. Apple states that Epic cannot show anti-competitive behavior from Apple, and the latter says it can show pro-competitive justifications.
Apple also mentioned that the Court of Appeals, which campaigned for Qualcomm in its case against the FTC, a case the FTC refused to bring back to the Supreme Court, ruled that “while anti-competitive behavior is illegal, hypercompetitive behavior is not”. Apple obviously believes its actions are in the latter category.
Tim Sweeney, Epic CEO, commented today, saying that Epic is not asking Apple to cut compensation for in-app purchases. However, he pointed out that the Apple tax can result in Apple making more money from an app than the app’s developers.
While Apple has tried to show that there are plenty of other app stores that Fortnite can be listed on, Fortic said that Fortnite is more than a game. He called Fortnite a “phenomenon that goes beyond gaming” and a “social and entertainment experience that includes a variety of gaming and non-gaming experiences.” This means that such a title would need a top app storefront like Apple’s App Store to promote it.
While Apple’s App Store is making up to 30% fewer in-app purchases, Epic’s own App Store is cutting it by 12% and is “hundreds of millions of dollars less profitable”. According to Sweeney, Epic’s App Store could become profitable in the next two to three years.