Epic sues Apple, Google over in-app purchase policies

Epic Games is suing Apple and Google for anti-competitive practices, over the way in-app purchases are handled in the App and Play stores.

The Fortnight Developer recently released an update for the mobile version of the game, which allows players to purchase microtransactions directly through them, rather than having to go through each platforms’ respective app store. Both Google and Apple have subsequently banned the update due to it violating store policies.

Apple currently takes a 30% cut on all purchases made through the App Store, which is later reduced to 15% after a one year. They also require that any purchases made inside games must also go through their respective stores. This includes any microtransactions, which are now the primary revenue model for most mobile games. Epic pulled in $1.8 billion in revenue from Fortnight alone last year, with the vast majority of that money coming from in-app purchases. While it’s not readily apparent what the revenue split is between mobile and traditional gaming platforms, that’s still a large chunk of change going into Apple and Google’s coffers.

Epic Games has recently been on the warpath over what they consider to be excessively large store cuts on digital platforms. Something they claim harms developers and publishers alike. This was a large part of their motivation behind the Epic Games Store. Epic only takes a 12% cut on third party games sold through its PC storefront.

In a statement issued by the company, Epic Games stated that they wanted to, “…bring[s] this suit to end Apple’s unfair and anti-competitive actions that Apple undertakes to unlawfully maintain its monopoly in two distinct, multibillion dollar markets: (i) the iOS App Distribution Market, and (ii) the iOS In-App Payment Processing Market.”

The lawsuit argues that both companies violate parts of the Sherman Antitrust Act, the Clayton Antitrust Act, and the California Cartwright Act.

As for Google, it is worth noting that Android does allow users to install alternative app stores on their devices, such as Amazon’s or F-Droid. So they may not have as much of a case here as they do against the lads in Cupertino.

Apple’s App Store policies came under fire earlier this month after it barred Microsoft’s xCloud and Facebook’s Gaming apps from the iOS platform. The company claimed that all games featured on these services would need to be subject to review first, and that they did not allow apps to run external code. Online pundits, including your truly, questioned this claim, since game streaming is fundamentally no different than video streaming. At least in terms of how things operate on the end user’s device.

There’s also a certain degree of irony here, considering that Epic’s own Epic Games Store has come under fire for its exclusivity deals, which have seen some PC titles removed from competing retailers. With microtransactions also falling under increased scrutiny, it’s certainly an interesting hill they’ve chosen to take a stand on.

The lawsuit has been filed with the US District Court of for the Northern District of California.

Source: Hothardware