Epic Games Wins Lawsuit Against Apple

[CriticalGaming]

Epic Wins Big Fortnite Lawsuit Against Apple

Judge rules Apple cannot require in-app transactions to go through the App Store

kotaku.com

So what we didn't think could happen, actually happened. Epic has won the rights to monetize their apps on the apple store via their own transaction server. This makes it so that app developers can now use other payment processors for mobile games, meaning that they no longer have to pay Apple their cut of the profits from selling bullshit in the MT stores for these apps.

Apple if you didn't know charged a 30% fee from every microtransaction interaction that occurs within their store front. So if you bought V-bucks for Fortnight on your phone, apple would get 30% of whatever that transaction was. This is a big part of the reason why we often see very stupid fucking prices for crap in mobile games, because all these developers were paying big fees for basic payment processing.

Epic said this was bullshit and has been suiting them for some time. Today the courts ruled in Epic favor and Apple must now allow apps to use other payment processors if they want too, which they will because no developer is going to want to give away 30% of their revenue if they don't have to.

It will be interesting to see what happens now, because two things have to happen.

1. Apple will be forced to lower their cut of transactional profits otherwise people will just move to another processor and Apple will see nothing.

2. The pricing in mobile games will likely diminish, because that 30% no longer has to come off the top. Which means that lower pricing will encourage more transactions in the long run.

But here is the thing. This effects other things too not just games.

Youtube for example. If you send a superchat to someone on youtube via your iphone, Apple takes 30%, then youtube takes another 30%, so tipping someone $1 could see them only getting like 40 cents or something like that.

Nick Reketa has a good video about it.

 

[meiam]

I dunno, one it'll probably go on appeal and such. Two apple will probably just find new alternate way to charge money and the alternative might be even more of a pain in the ass. Or maybe they'll just automatically delist any app that doesn't use apple pay or something, they have final say on what goes on the app store and it's not like teh app store is an utility, the governemnt can't force apple to carry an app they don't want.

 

[CriticalGaming]

I dunno, one it'll probably go on appeal and such. Two apple will probably just find new alternate way to charge money and the alternative might be even more of a pain in the ass. Or maybe they'll just automatically delist any app that doesn't use apple pay or something, they have final say on what goes on the app store and it's not like teh app store is an utility, the governemnt can't force apple to carry an app they don't want.

Sure but that would also open them up for people just creating their own APK clients to circumvent the Apple store. So instead of gettng the app from the Apple store, you just download it directly from the game's website. Or a 3rd party program.

I think what really will happen is Apple will reduce their cut %. Because the really big apps like Twitch and Youtube will demand it. And Apple wouldn't want to loose that business.

 

[09philj]

The judge didn't rule that Fortnite has to be returned to the iOS store so if Apple declines to do that then Epic also lost.

 

[Worgen]

Apple didn't lose, but epic certainly lost less, but Apple doesn't have to allow 3rd party app stores. Anyway, this is a really weird thing. Its super weird that the law would tell apple how to manage its store and require them to allow other payment processors. Plus, I mean if apple can't make money off of payment processing then why should they allow free apps on their store at all. I just find it super strange that a judge can tell them how to run their store.

 

[meiam]

Apple didn't lose, but epic certainly lost less, but Apple doesn't have to allow 3rd party app stores. Anyway, this is a really weird thing. Its super weird that the law would tell apple how to manage its store and require them to allow other payment processors. Plus, I mean if apple can't make money off of payment processing then why should they allow free apps on their store at all. I just find it super strange that a judge can tell them how to run their store.

My "read betwenn the line" interpretation is that there's a strong backlash against big tech at the moment, so the judge saw apple = bad (not realising that epic is also big tech) and just went against them. As soon as it'll hit a higher level the decision will be overturn on appeal.

 

[Worgen]

My "read betwenn the line" interpretation is that there's a strong backlash against big tech at the moment, so the judge saw apple = bad (not realising that epic is also big tech) and just went against them. As soon as it'll hit a higher level the decision will be overturn on appeal.

That is definitely what epic tried to do to apple. As soon as they sprung their trap on apple they tried to rally gamers behind them in the same way assholes did back in the day with gamers for """ethics in games journalism.""" (yes that does require 3 ") But I think you are right, that it will get overturned in appeal. Although we still have a number of weird bills showing up about app stores and the like, which are all very weird and are one of those things that could use the TX abortion law as a blueprint to bypass the pesky constitution, along with banning violent video games and such.

 

[immortalfrieza]

2. The pricing in mobile games will likely diminish, because that 30% no longer has to come off the top. Which means that lower pricing will encourage more transactions in the long run.

I consider it far more likely that the prices will stay the same if not increase, because the fact that they don't have to give Apple a cut doesn't change the fact that we were willing to pay those prices in the first place. Sure, they might have used Apple taking a cut as an excuse, but even with that they could've charged a fraction of what they have and still made out like bandits.

The only thing that'll change here is they'll just get more profits off of these apps while we the consumer don't see a penny in savings.

 

[meiam]

Reading a bit more it seems like this was mostly a win for apple, almost every point epic brought up was ruled in apple favor and apple specifically doesn't have to allow epic (or any apps) on its store if it doesn't want to without really having to give a reason.