Epic Sues Apple and Google due to Fortnite getting pulled [2020-08-13, 2021-05-03]

Apple ToS and conditions are ultimately irrelevant. Epic isn't looking for a cheaper deal.

Epic looked at the prevailing political winds and decided that if they ever could get the US government to force third party stores on iOS, this would be the time. They are absolutely right.

Yep. A lot of news media companies are questioning Amazon’s lower App Store fees and membership to a program that Apple only just recently revealed. Apple allows lower fees for this program in return for integrating certain iOS features (Siri is one examples). This program only includes three members. These companies are inquiring about what exactly did Amazon do to be included. They want the same opportunity.
 
Ever since Epic's lawsuit was announced, AAPL has added tens of billions in market cap.

Market doesn't think this will be a threat to the business model, apparently.

Apple Services revenues continue to grow?
 
The thing is, Epic cited the Sherman Antitrust Act.

Do they really expect to make a case about antitrust themselves or did they cite it to see if the govt. would prosecute the antitrust law?

They may argue that the antitrust law applies in this case but I would think they'd have to convince the govt. to prosecute an antitrust case against Apple.
 
If Anti-trust talk gains any traction the threat is more likely to come from an attorney general than from Epic.

I don't see any reason investor confidence would waver until that happens. Or if Biden names Bernie or Warren to Secretary of Commerce.
 
If Anti-trust talk gains any traction the threat is more likely to come from an attorney general than from Epic.

I don't see any reason investor confidence would waver until that happens. Or if Biden names Bernie or Warren to Secretary of Commerce.


It would be the DOJ which prosecutes for antitrust.

I don't know that Bernie will champion Epic, since Sweeney is probably a billionaire himself or very very rich.
 
It would be the DOJ which prosecutes for antitrust.

I don't know that Bernie will champion Epic, since Sweeney is probably a billionaire himself or very very rich.

Not champion Epic, but he'd certainly break up Apple.
 
https://www.cnbc.com/2020/08/21/app...-side-deal-for-fortnite.html?__source=twitter
Sweeney said earlier this month that Epic is not seeking a “special deal” with Apple that other iOS app makers don’t get.

But in Friday’s filing, Apple disputed that point.

“On June 30, 2020, Epic’s CEO Tim Sweeney wrote my colleagues and me an email asking for a ‘side letter’ from Apple that would create a special deal for only Epic that would fundamentally change the way in which Epic offers apps on Apple’s iOS platform,” former Apple Senior Vice President Phil Schiller wrote in a declaration. Schiller, whose title is now Fellow, runs Apple’s App Store.

Apple said Sweeney was asking permission for Epic to bypass in-app purchases and allow Fortnite players to pay it directly. Schiller said that Sweeney emailed him the morning that Forntite changed its payment mechanism saying that it “will not longer adhere to Apple’s payment processing restrictions.”

well_there_it_is_jurassic_park.gif
 
Not champion Epic, but he'd certainly break up Apple.

On what basis exactly? Apple is not a monopoly in any of its markets.

Because Apple is too big? Then MS better watch out because it's around $2 trillion in market cap too. And it still has a desktop OS and office productivity monopolies, probably at least 80% in each of those markets, still generating a ton of licensing revenues every year.

Bernie wouldn't be the one to decide that a company be broken up.

It would be a judge or the Supreme Court and it will only be after years of litigation.
 
On what basis exactly? Apple is not a monopoly in any of its markets.

Because Apple is too big? Then MS better watch out because it's around $2 trillion in market cap too. And it still has a desktop OS and office productivity monopolies, probably at least 80% in each of those markets, still generating a ton of licensing revenues every year.

I don't doubt MS, Google and Amazon would also be targets. Not that the left is going to have its way in a Biden government.

You have to ask yourself if Apple were broken up would they act the same way. I think the answer is a big fat no. There's no doubt they use their market position to exert pressure to maintain non competitive behavior
 
How would you break them up exactly?

And how is charging 30% anti-competitive? Fortnite made a fortune paying 30% for a couple of years. Of course they could have made an even bigger fortune if they only paid 15%.

But they could have really promoted Android, not even put out an iOS version. Side load and keep all the money. Or make an Android store or cut a deal with Amazon store on Android.

In any event, if Epic gets their way, it could have an effect on the console market because the same arguments could be made against Sony or MS having too much control over which games get on their platforms.
 
So Apple doesn't only want a 30% cut of sales though an app, they'll also block your app if nothing can be purchased through the app (either in app or through a browser) but you sell something on your own platform.

Apple blocked WordPress updates because it didn't have a in-app purchase option. Even removing access to the paid pages wasn't enough. Apple would only allow the app if WordPress would offer in app purchases and thus giving Apple their 30% cut.


Now it isn't a question about fair or not anymore. This is downright criminal.

Unfortunately I doubt Tim Crook will ever see the inside of a jail though.
 
How would you break them up exactly?

Just force sideloading and third party stores down their throat, simplest solution.

Yes, in principle the situation is similar to consoles. But consoles are a tiny market, with much healthier competition. So in practice it isn't the same situation.
 
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