Leaf&Core

Apple Countersues Epic for Breach of Contract

Danielle from Leaf and Core
Reading Time: 3 minutes.

Fortnite screenshot on iPhone XSIf the Epic vs Apple fight wasn’t controversial enough, Apple just complicated things further. The company is claiming that, by bypassing Apple’s release process by creating a backdoor that enabled Epic to add non-App Store in-app purchases to Fortnite, Epic breached their contract and stole services from Apple. It is in the developer agreement, and, while their price may be unfair, Apple does charge for their services of hosting apps and providing in-app purchases support, which Epic cheated them out of. Essentially, Epic had their app on the App Store for free, and Apple wants their cut.

The counterclaim asks for damages. They claim Epic’s actions amount to a breach of contract and theft of services. Technically, Apple has a strong case, even if Epic wins against Apple in their suit for monopolistic practices.

A Quick Recap

  1. Epic planned this fight with Apple, even created videos and marketing material in advance. This is because Epic wants to offer a competing game store on iOS and Android to profit with the same business model Apple and Google use.
  2. They then pushed an update to Fortnite that allowed them a backdoor, so they could sell V-Bucks without giving Apple it’s (admittedly unfair, but still legal) cut.
  3. Apple kicks Fortnite off the App Store.
  4. Epic sues Apple.
  5. Epic keeps trying to update Fortnite, without removing the bypass features.
  6. Apple bans Epic, revoking their developer certificate and removing all Epic apps from the App Store. This could put non-Epic apps that use the Unreal Engine in jeopardy.
  7. Now: Apple counters Epic’s lawsuit with one of their own.

Apple’s Case

“Although Epic portrays itself as a modern corporate Robin Hood, in reality it is a multi-billion dollar enterprise that simply wants to pay nothing for the tremendous value it derives from the ‌App Store‌. Epic’s demands for special treatment and cries of “retaliation” cannot be reconciled with its flagrant breach of contract and its own business practices, as it rakes in billions by taking commissions on game developers’ sales and charging consumers up to $99.99 for bundles of ‘V-Bucks.'”

“For years, Epic took advantage of everything the ‌App Store‌ had to offer. It availed itself of the tools, technology, software, marketing opportunities, and customer reach that Apple provided so that it could bring games like Infinity Blade and Fortnite to Apple customers all over the world. It enjoyed the tremendous resources that Apple pours into its ‌App Store‌ to constantly innovate and create new opportunities for developers and experiences for customers, as well as to review and approve every app, keeping the ‌App Store‌ safe and secure for customers and developers alike.”

– From Apple’s lawsuit

Epic’s case revolves around the monopolistic practices of the App Store on iOS. Basically, if you want to develop for iOS, you have to pay Apple’s fees and give them a huge 30% cut of your sales. It’s definitely everything Epic claims. It’s unfair, it’s a monopoly, but it’s still something Epic agreed to. They agreed to it, played in Apple’s system and, once they realized their own Epic game store worked well for them on PC/Mac, decided they needed to set up an app store of their on on iOS and Android. If they had just sued, they could have left their games in the App Store and Google Play. But they wanted to make a fuss. So they broke the rules to get kicked off the App Store. Breaking those rules amounted to using Apple’s services without paying for them. Unfair as it is, it’s still illegal to steal services. It’s also breach of contract.

Apple has a fantastic case here.

Epic’s Fight

Epic’s trying to file an injunction to get Fortnite back in the App Store. However, it’s unlikely to progress, especially with Apple’s counterclaim stating that Epic’s app is stealing from them. The only way Epic could possibly get back into the App Store now is if they listen to Apple and remove the update that allowed them to backdoor a direct buy option to Fortnite. Apple has pointed out that they’d happily allow Fortnite and Epic back on the App Store if Epic just follows the rules of the App Store.

Epic’s trying to have their cake and eat it too, get Apple’s services but not pay for them. However, Apple’s also upholding a monopoly and overcharging developers.

Basically? They’re both terrible. But if Epic wins, developers will have more choices for platforms. Users may find new apps they couldn’t download before. There will be competition in the app marketplace. However, unless Apple still has to approve all apps and license apps, security will take a hit. Apple can still profit from this licensing. If Epic wins, they’ll surely reduce Apple’s profits, but developers and users may appreciate it.

App Monopolies

This case will likely be ongoing, and may end with new legislation or precedence. Even Russia has considered Apple and Google to have monopolies on their platforms. They’re looking to pass laws to limit how much companies can charge, as a way to limit monopolies from abusing their powers, without breaking the monopolies themselves. Some U.S. politicians, like Elizabeth Warren, want to break apart tech monopolies like Apple, Google, Facebook, and Amazon entirely. This would force the App Store and Apple apart, and open iOS to multiple app stores. It’s the solution Epic wants, and some legislators will make these changes a core part of their platforms.

Epic may finally be the one to take down the App Store. The question is, will consumers even notice an improvement, or will this just make finding an app more difficult?

Sources:
Exit mobile version