Epic Games wins lawsuit against Apple
Rule out Gilgamesh, Apple’s epic tale against Epic Games just ended and we’ve got the details.
Yesterday, a federal judge ruled (mainly) in favor of Epic in its vendetta against the fees of the App Store. The court of investor opinion quickly followed suit, with shares in games like Roblox and Zynga climbing after the announcement.
The backstory: Epic CEO Tim Sweeney martyred his highest-grossing game last summer Fortnite by encouraging users to make in-game purchases (hamburger headsets, demogorgon skins) outside of Apple’s payment systems to protest the high commission Apple charges developers in its App Store.
The game was quickly started from the App Store and Epic kicked off its revolution with a 1984style video and a lawsuit against Apple, which resulted in a high-profile lawsuit with testimony from Apple CEO Tim Cook.
Tim S. had a big win over Tim C. The judge ruled that Apple should allow developers to send users out of the App Store to make payments – the biggest change to the platform since its inception in 2008. The court also ruled that Epic’s ends did not justify its means, and the company would be required to pay Apple more than $ 4 million in damages.
But $ 4 million is a roll of quarters beside the multibillion-dollar pile of App Store commissions that Apple stands to lose. The App Store in its current state earns Apple more than $ 20 billion a year with a profit margin of at least 75%, analysts say.
Here’s why Apple is more like Mr. Brightside about it
A few billion in revenue a year is a small price to pay for the court ruling that the Apple App Store is not a monopoly. As Apple wrote in a statement, “Today the court confirmed what we have always known: the App Store does not violate antitrust law.”
Looking ahead …Apple could appeal this decision, and Sweeney still has a Sisyphus effort ahead of him to release Fortnite third-party costs, including complaints against Apple in several other countries as well as an upcoming lawsuit against Google. – JW