Epic Games, the maker of the popular video game Fortnite, will try to prove that Apple has turned its app store into a weapon for shaking down smaller companies to boost its profits in a federal court trial scheduled to start Monday. (May 3)
– [INAUDIBLE] reality just doesn’t like me.
– This is really the first shot across the bow toward Apple in terms of defending their moat and what they charge developers. And apps is Fortnite look to ultimately go off of AppStore. And basically do it themselves. And this is something. It’s not just about Epic. It’s about the industry. Everyone’s watching this closely to see if Apple ultimately could defend its moat or if there’s any sort of judgment against it, which would have a massive ripple impact.
Now, with that said. Apple is like, these are our terms, you violate our terms of service, and that should hold up ultimately in court. Now, so far, that really looks to be likely the way that this goes. And Epic, they’re putting themselves out there. I mean, Fortnite mobile being taken off the AppStore, that was a major strategic risk. And they’re really taking one you can call for the team.
Part of the issue the developers, the apps, they rely on Apple. $1.6 billion iOS devices. So, it’s also making sure you don’t bite the hand that feeds you. That’s sort of been an issue here, which is why Epic doesn’t necessarily have too many other developers that have kind of come with them, because Apple ultimately holds the keys to the Kingdom.
Now, Epic is big enough for Fortnite that they can go after Apple in some sort of court case. But most apps, most developers, they need app. So, which one of those? They don’t love paying the 30% fee, no one else would. But ultimately, it’s the AppStore which is, of something that’s unique worldwide.
AppStore is the crown jewel of Apple. And this is something they’re not taken lightly. And Apple has really come back aggressively on this. And that’s why a lot of eyes would be in terms of this court case, as well as all the testimony that comes out. But it’s no shock at all that cook would be testifying.
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