Ahead of the upcoming lawsuit against Epic Games, Apple today filed 500 pages of documents covering factual findings and law findings, which basically summarize the information exchanged between Apple and Epic, present the relevant facts to the judge and argue for logical conclusions. which must be extracted when the law applies to the case.
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Apple adheres to many of the points of discussion it has argued since the beginning of its dispute with pEpic Games. The App Store has remained unchanged in terms of overall rate structure since it debuted in 2008, and while policies have been updated, the principles of development have remained the same.
Apple considers Epic’s challenge to be an attack on its core 13-year-old “App Store” business model. Apple argues that its strict application review guidelines provide consumers with security, privacy, and reliability, which are also known for their devices, which brings significant benefits to end users and developers.
The 30 percent fee Apple charges is in line with the fees charged by other app and software vendor markets, as shown in a study Apple had commissioned earlier this year, and Apple recently introduced the Small Business Program to reduce rates to 15 percent for developers earning less than $ 1 million a year. Apple entered a market where 30% commissions were already accepted; did not set this rate when the “App Store” was launched.
In response to claims that the “App Store” is anti-competitive because there are no alternative app stores allowed on the iPhone, Apple is targeting competition in the device and gaming transaction markets. There are other platforms that people can choose from, along with other gaming options, and web apps are compatible with iPhone and iPad as gaming alternatives that Microsoft and Google have already taken advantage of. Apple uses Epic’s main title, Fortnite, to illustrate its point.
Epic’s flagship game, Fortnite, illustrates the competitive landscape. Apple supports cross-platform gaming and platform transactions. The same consumer can shop from the V-Bucks app on their iPhone (via the browser) during a lunch break and on the home console in the evening. Apple (unlike some of its competitors) allows the game of “cross wallets”, so in-game purchases (called V-Bucks at Fortnite) can be made on one device and used on another. In other words, an iOS user can buy V-Bucks on a PC and then (before deleting Fortnite) use them on Fortnite on their PiPhone or iPad, with Epic not owing a penny a commission to Apple.
Epic’s internal documents related to the “Liberty Project” suggest that Epic has been conspiring against Apple and Google since 2008. Epic began the Liberty Project when it saw a decline in its monthly average revenue and active users, designing a strategy to pay less. commissions while still taking advantage of the benefits of the “app store” and the money Apple has invested in the ecosystem.
Epic Games hired lawyers and a public relations firm as part of its plan to file a lawsuit against Apple, which ended up paying hundreds of thousands of dollars. Epic outlined its plan to get Fortnite’s approval with hidden alternative payment options, which was then activated through a review, which led to the current dispute. Epic internal documents described the legal battle against Apple and Google as “fun.” and looked at how to get Apple and Google to reconsider their rates without Epic Games sounding like “the bad guys.”
All of this was part of a pre-planned media strategy called the “Freedom Project”. Epic retained Cravath, Swaine & Moore LLP and a public relations firm in 2019, and that demand is the culmination of that effort. Epic is trying to portray Apple as the bad guy so he can relive the prominent interest in Fortnite. Ironically, however, when Epic was released on the iOS platform, it told gamers that they could continue to play on consoles, computers, and other devices, proving the existence of competition and the absence of a monopoly.
Tim Sweeney, CEO of pEpic Games, confirmed Project Liberty in previous interviews and said that Epic spent months preparing the lawsuit against Apple, although Apple’s court proceedings provide a new insight into how long Epic will go. to string Apple and Google in an antitrust lawsuit.
Apple argues that the expansion of antitrust law is not justified and that Epic’s product market descriptions are inaccurate due to the other platforms with which the “App Store” competes. Apple claims that Epic exaggerates the profitability of the App Store and that the arguments that the review process is ineffective are inaccurate. Last year, Apple rejected 150,000 apps and the malicious software of iOS devices is almost unheard of compared to the high number of malicious apps found on computers and Android devices.
Apple says Epic’s claim that the market is just iOS apps will fail and that the relief Epic seeks would be detrimental to consumers and developers, as it would weaken the “app store.” Apple also sees “App Store” as an integrated feature of the “iPhone” and in-app purchase as an integrated feature of “App Store” that doesn’t allow third-party payment options, which is what Epic is aiming for.
At the bottom, Epic is asking this court to impose alternative terms on Apple so that Epic can make more money. But Epic’s request would harm other developers and consumers, in addition to imposing unprecedented obligations on Apple to open its proprietary systems and engineering to third parties.
The Epic bank trial against Apple will begin on May 3 and end the week of May 24. Both Epic and Apple will call on renowned witnesses, including Apple CEO Tim Cook, Apple colleague Phil Schiller, Apple’s chief engineer. Craig Federighi and former IOS software chief Scott Forstall will testify on behalf of Apple.