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UPDATE:
- A British court ruled on 22 Feb. 2021 that the litigation can proceed against Google and its parent company, Alphabet Inc.
- The court ruled that a related action filed against Apple will not, however.
Apple and Google are facing new legal action in the U.K. from “Fortnite” maker Epic Games.
Fortnite Removed From App Store
Epic Games’ complaint takes issue with Apple’s removal of “Fortnite” from the App Store, according to AppleInsider.
The complaint was filed with the U.K.’s antitrust tribunal. It claims Apple unlawfully removed the game from the App Store and also took advantage of its “dominant position.”
“Epic is not seeking damages from Apple or Google in the U.K., Australia or the U.S., it is simply seeking fair access and competition that will benefit all consumers,” Epic Games’ Tera Randall told AppleInsider.
She added that the company believes the argument is an important one to bring on behalf of “consumers and developers in the UK and around the world who are impacted by Apple and Google’s misuse of market power.”
Epic Games’ complaint alleges three anti-competitive practices on Apple’s part: First, that Apple establishes itself as the only channel for distributing apps on iOS. Second, that the company uses its market position to charge “unfair prices” for app distribution. And third, Epic Games takes issue with Apple’s response to the game company introducing “price competition,” AppleInsider reported.
Epic Games has filed a similar complaint against Google, according to AppleInsider.
Epic Games Bypasses Both Google and Apple Payment Systems
Apple and Google take a cut of the fee — usually about 30% — when App Store or Google Play users purchase an app or subscription or make an in-app purchase, the BBC reported.
To make up for this cut, companies will either not sell in-app subscriptions or will sometimes charge higher prices for subscriptions when people make the purchase in the app rather than on the company’s website.
The companies are not allowed to tell app users they can make their purchase for less elsewhere, according to the BBC.
The 30% cut is too high, Epic games asserts, considering the costs of game development.
So in August 2019, Epic Games bypassed both Apple and Google’s payment systems, allowing “Fortnite” players to buy virtual currency from the game maker at a lower price.
Because of this, Apple and Google removed “Fortnite” from their app stores, and Epic Games’ developer account with Apple was terminated.
Apple says it applies its rules equally to all app developers and aims to create a “safe and trusted place” for software downloads, the BBC reported.
“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,” the company said in a statement. “Their reckless behaviour made pawns of customers, and we look forward to making this clear to courts in the U.K.”
Google, for its part, said it’s looking forward to the chance to “continue discussions” with Epic Games about reinstating “Fortnite.”
“The open Android ecosystem lets developers distribute apps through multiple app stores,” Google said in a statement, the BBC reported. “For game developers who choose to use the Play Store, we have consistent policies that are fair to developers and keep the store safe for users.”
Epic Games Seeks Relief
With its complaint, Epic Games is asking the Competition Appeal Tribunal for several forms of relief, including an order forcing the tech giant to remove restrictions on third-party payments made within apps.
Epic Games also is asking for a restraining order to keep Apple from any further actions against it and a reinstatement of the game maker’s developer account.
Epic Games has taken similar action in the U.S. and Australia.
Google Claims to Proceed in U.K. Court
In an order dated 22 Feb. 2021, Judge Peter Roth of the Competition and Appeal Tribunal ruled that the claims of anti-competitive behavior by Google will be able to proceed in U.K. court; however, Judge Roth tossed some allegations regarding the company’s app distribution agreement and app restrictions.
“I find that England (or the U.K.) would be clearly or distinctly the appropriate forum for trial of the claims concerning the restrictive terms in the DDA and the removal of Fortnite from the Google Play Store as regards the U.K.,” states the order.
Judge Roth did not make a similar conclusion regarding a lawsuit accusing Apple of anticompetitive conduct. In that dispute, concluded the judge, U.S. courts are more appropriate, noting “many of the same issues of substance which arise under U.K. competition law arise under U.S. antitrust law.”
What do you think about Epic Games’ complaint against Apple? Let us know in the comment section below.
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