Global Economics

The Epic Battle Against Google and Apple

On Friday, it was announced Fortnite developer, Epic Games, is suing both Apple (AAPL) and Google (GOOG) for Thursday’s removal of their game from their app stores. Fortnite is currently being blocked for new downloads by Apple and Google due to what the tech companies say is a violation of user agreements.

Currently, the Fortnite app enables users to make payments directly through the app for any purchases they make. By allowing this, the standard 30% charge that’s associated with all Google and Apple store transactions is avoided. With Fortnite having over 350 million users and counting, the loss of 30% per transaction can equate to a pretty hefty sum for both Apple and Google.

According to Epic’s lawsuit against Google, the developer alleges that the tech giant has abandoned its promise of an “open ecosystem.” The separate lawsuit against Apple claims that the company is seeking to stifle competition and control the market.

According to Apple, Fortnite was removed because it was out of compliance with guidelines the company states are in place to keep users safe. Apple alleges that it’s required to review and approve all app features. Google’s response to the litigation was similar to Apple’s. On both platforms, users can still play Fortnite if it was previously downloaded, but new downloads have been disabled at this time.

Previously, Epic had taken on Google’s app store in 2018 when it encouraged users to download the game directly through Epic instead of through the app store.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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