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Tag: fortnite

  • Epic Games dares to challenge the 30% Apple Tax and gets its developer account closed in return

    Epic Games dares to challenge the 30% Apple Tax and gets its developer account closed in return

    Apple and Fortnite developer Epic Games are in the middle of a, well, epic battle. The fight is over Apple’s in-app payment system and the 30% cut that the company takes on in-app payments. Apple says that it will revoke Epic Games’ developer privileges by shutting its accounts starting later this month. Last week, Apple told the developer to “remove the ‘Epic direct payment feature’ that bypasses Apple’s in-app payment system which counts seven beans for Epic and three for Apple with each purchase. On Epic’s website, the developer wrote, “Apple is keeping prices high so they can collect 30% of your payments, and is blocking.

    Epic, very publicly, is revealing what is going on. A Tweet disseminated by the game developer revealed that Apple has removed Fortnite from the App Store and will terminate its developer accounts on Friday, August 28th. Epic will not have access to iOS or Mac developer tools starting on that date. Epic filed a lawsuit today seeking a Temporary Restraining Order against Apple; the suit requests that the latter be restrained “from removing, de-listing, refusing to list or otherwise making unavailable the app Fortnite, including any update thereof, from the App Store on the basis that Fortnite offers in-app payment processing through means other than Apple’s In-App Purchase…”

    Epic’s Preliminary Statement included with its court filing explains everything from Epic’s point of view. It says, “Apple has for years used its complete monopoly over the distribution of apps to the billion users of iOS, the Apple operating system running on all iPhones and iPads, to coerce app developers into using Apple’s payment platform, In-App Purchase (IAP) for all in-app purchases of digital content used in their apps. By tying IAP to app distribution, Apple eliminates all competition in the market for in-app payment processing, allowing it to impose an exorbitant 30% “app tax” on all in-app purchases of in-app content.”

    The filing goes into more detail as Epic explains what took place earlier this month. “Just over two weeks ago, Apple’s CEO Tim Cook was asked during a Congressional hearing whether Apple has “ever retaliated against or disadvantaged a developer who went public about their frustrations with the App Store”. Mr. Cook testified, “We do not retaliate or bully people. It’s strongly against our company culture.” But Apple has done just that. When Epic gave users of its app Fortnite a choice of how they wanted to make purchases, Apple retaliated by removing Fortnite from its App Store. Then when Epic sued Apple to break its monopoly on app stores and in-app payments, Apple retaliated ferociously. It told Epic that by August 28, Apple will cut off Epic’s access to all development tools necessary to create software for Apple’s platforms—including for the Unreal Engine Epic offers to third-party developers, which Apple has never claimed violated any Apple policy.”

    Apple has said that it is willing to work with Epic but the developer notes that “Apple’s actions will irreparably damage Epic’s reputation among Fortnite users and be catastrophic for the future of the separate Unreal Engine business.” The optics just do not look good for Apple especially since the App Store and the tech giant’s 30% cut are under the regulatory microscope in the states and Europe.

    Epic believes that it is “likely to succeed on the merits of its claims,” but is asking for the restraining order anyway. That is because it is concerned that it will be irreparably harmed before the court reaches a final decision. It should also be pointed out that Epic is not asking for monetary damages, nor it is asking for a ruling that would favor it above other companies. What Epic is asking for is “injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers.”

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  • Apple removes Fortnite from the App Store after Epic added its own purchase system

    Apple removes Fortnite from the App Store after Epic added its own purchase system

    Apple has quite strict rules when it comes to App Store, so developers who want their apps on the iOS ecosystem must respect Apple’s policies. That’s one of the reasons Microsoft couldn’t bring its upcoming Project xCloud streaming service to iOS and, more recently, why Apple has removed Fortnite from the App Store.

    Epic Games introduced earlier today its own purchase system for Fortnite on Android and iOS, which will skirt Apple and Google’s 30% fee on every purchase made through its app stores.

    The company announced a permanent discount on V-bucks, the in-game currency Fortnite is using to buy cosmetics, as well as other cash purchases in the game of up to 20%. In a statement published today, Epic Games said that these are the new prices for Fortnite’s currency on mobile since it introduced its own purchase system that won’t go through either the App Store or Google Play Store.

    Basically, this means that Epic Games no longer pays 30% fees for each transaction it makes in Fortnite through App Store or Google Play Store. As such, the company decided to offer what would have been paid to Apple and Google to the players in the form of a permanent discount on V-bucks. By offering an alternate payment system, we’re not only offering players more choice, but we’re able to pass along the savings to players.

    Unfortunately, the move didn’t remain unsanctioned by Apple, as the company decided to completely remove Fortnite from the App Store just hours after Epic Games added its purchase system in the game.

    The way Epic Games decided to get around App Store’s fees probably infuriate some people at Apple, which decided to show them otherwise. Apple claims that the reason it removed Fortnite from the App Store is that Epic Games rolled out an update for the game without getting permission from Apple. The update introduces the changes to the payment system that we’ve detailed above and would’ve probably rejected by Apple.

    Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users. As a result, their Fortnite app has been removed from the store. Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services.

    The statement also mentions that there will be no negotiations with Epic Games, so unless the developer doesn’t abide by App Store’s rules, Fortnite won’t return to the iOS store. Apple also states that there’s no room for exceptions, so any Epic Games decision that violates the App Store’s terms and guidelines will be rejected.

    Epic has had apps on the App Store for a decade, and have benefited from the App Store ecosystem – including its tools, testing, and distribution that Apple provides to all developers. Epic agreed to the App Store terms and guidelines freely and we’re glad they’ve built such a successful business on the App Store. The fact that their 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. We will make every effort to work with Epic to resolve these violations so they can return Fortnite to the App Store.

    Fortnite would’ve have been the only app that features its own payment system. Other apps like Best Buy, Uber, and a lot of others don’t pay the 30% fee to Apple for transactions and are allowed to operate normally.

    It’s not surprising that Epic Games’ move comes only days after Microsoft complained about Apple’s strict App Store rules. It looks like several giants that do business with Apple are starting to show their discontent about the way the Cupertino-based company chose to treat their successful products. It’s like Apple wants a piece of everyone else’s pies at any cost, even if that means losing some customers in the long run.

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