Victory Royale… Apple described its day in court versus Epic Games yesterday as “a resounding victory” after 9 out of 10 of the Fortnite maker’s claims were decided in Apple’s favor. Refresher: in 2020, Fortnite was booted from Apple’s and Google’s stores after it directed players to its own discounted payment system to bypass the “app tax.” Epic retaliated by suing both tech titans and making a dramatic “1984” parody video. The legal saga appears to be over:
The one claim that got away… is the core of Epic’s suit. The ruling says Apple can’t bar developers from steering users to off-app purchasing pages to skirt the 15 to 30% fee that Apple skims off in-app purchases (picture: Beef Boss skins). Read: Epic could allow players to set down their shockwave hammers and leave the Fortnite app to pay outside Apple’s ecosystem. Fortnite hasn’t been on the App Store since 2020, but it could return this year.
Giving up a slice: Last year, Apple started allowing “reading apps” — including Netflix, Audible, and Spotify — to steer customers to alt payment options. Now it’ll have to extend the policy to games, too, if it fails to appeal this week’s ruling.
Prob-llama: As of 2021, gaming apps made up about 70% of all App Store revenue. If game developers start linking out to other payment options, Apple’s lucrative biz could take a hit.
The walled garden could show cracks… Apple (mostly) won this round, but scrutiny of its app-store dominance isn’t over. Authorities in South Korea, the Netherlands, and Japan forced Apple to allow third-party payment systems to be added to apps, and an EU law could mean iOS 17 will open the door to app downloads from third-party app stores (aka: “sideloading”).