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Apple, Google and Fortnite's stoush is a big tech arm wrestle

21 August 2020
How far will they go to retain power?
There has been a clash of clans in mobile gaming, with angry birds Apple, Google and Epic Games in a saga over in-app payments. Dr Marcus Carter and Dr Kyle Moore, our Fortnite experts, explain why.
Photo of a woman's hands holding an iPhone and playing the game Fortnite

Apple removed Fortnite from its app store. Photo: Epic Games Top image: Shutterstock

Video game developer Epic鈥檚 massively popular 鈥溾 game Fortnite was听from Apple鈥檚 App Store and the Google Play Store last week.

Android players can still download the game directly via the Epic Games mobile app, but for Apple iOS users the decision means no new downloads. Currently installed versions of the game will still work, but iOS players will be unable to update the game and participate in the next season of Fortnite, beginning on August 27.

The boot from Apple and Google was in response to Epic鈥檚 implementation of a direct in-app payment system, designed to circumvent Apple鈥檚 and Google鈥檚 own payment systems and their听30% fee听charged on听in-app purchases and app sales. Epic鈥檚 move is a clear violation of Apple鈥檚听rules听for app monetisation.

Epic taking charge

Following Apple鈥檚 and Google鈥檚 removal of Fortnite from their app stores,听Epic filed听an antitrust lawsuit against Apple in Californian courts, followed by another听against Google.

The game develoepr also launched the hashtag听#FreeFortnite听and aired an in-game parody of Apple鈥檚听famous 鈥1984鈥 ad听which, at the time it was released, was Apple鈥檚 own response to IBM鈥檚 dominance of the computing industry.

Apple鈥檚 iconic 1984 ad launching its Macintosh computers.

The parody renders the ad in Fortnite鈥檚 graphical style, but retains its original symbolism of oppression and control. Epic, valued at听, is attempting to portray itself as Apple did back in 1984: as an underdog facing down a corporate behemoth.

Epic Games鈥檚 parody ad appropriated the 1984 Apple commercial, aired on television during the Super Bowl.

What鈥檚 at stake in this show of platform power?

The fight escalated this week, with Apple听听Epic鈥檚 enrolment in the Apple Developer Program should it not resolve its breach of Apple鈥檚 policy.

Membership in the program is required for creating and distributing iOS software. Losing its enrolment wouldn鈥檛 just affect Epic, or Fortnite, but potentially anyone using Epic鈥檚 widely adopted听听game development technology.

Considering there are more than a billion users of Android and iOS based mobile devices, these punitive responses (particularly from Apple) are being characterised by many as anti-competitive and monopolistic, including by Epic鈥檚 chief executive Tim Sweeney.


In the past, other companies such as听,听听补苍诲听听have also protested Apple鈥檚 30% fee and strict control over the App Store. But none has so brazenly attacked Apple in the public sphere.

Apple鈥檚 and Google鈥檚 response to this saga has highlighted the power of big tech platforms. As in the case of app stores, these platforms are enclosed and tightly regulated systems. You must play by the owner鈥檚 rules, or you鈥檙e expelled.

In this case, Apple and Google know their app stores 鈥 where millions of users download their apps 鈥 are crucial to the financial success of developers on their platform.

As such they can exert their power over developers, who don鈥檛 really have anywhere else to go.

Photo of a kid with his hands on a game controller

According to Fortnite鈥檚 Twitter account, more than 12 million concurrent players got online for an event earlier this year.听Photo: Pixabay

Reminiscent of antitrust charges听, critics of Apple and Google have described the tech behemoths as anti-competitive monopolies charging an unreasonable 30% transaction fee.

This falls to 15% in the case of subscription-based apps but only after an initial year of Apple charging the 30% fee. For perspective, PayPal only charges听听of the value of each transaction.

What does Epic want?

Epic argues the mobile games market should be more like the PC market. For instance, Microsoft and Apple don鈥檛 get to charge a percentage on every transaction we make through our computers just because they developed the operating system.

Given听听to Apple鈥檚 ban, it appears Epic anticipated it and was prepared for this outcome.

Is Epic鈥檚 lawsuit ultimately aiming to renegotiate the percentage of app store cuts?

Maybe Epic believes it鈥檚 in a strong enough position to push back against Apple and Google, given Fortnite鈥檚听听and revenues, as well as the uptake of and value created by software using the Unreal Engine.

Or perhaps, given Apple鈥檚 previous听听of Google Stadia and Microsoft xCloud, Epic believes Apple has overplayed its hand.

The mobile games industry is a massive source of revenue for app store operators. Perhaps Epic is banking on Apple and Google eventually deciding gaming is too lucrative to cast aside, and hoping they will succumb to renegotiating fees.

Epic will probably be fine

Epic claims, in the long run, it鈥檚 doing this for everyone.

If it can force Apple to reduce the 30% fee, or launch an alternative game store on iOS with lower fees, developers will have to sell fewer game copies to make a profit. According to Epic, this means more games for everyone.


But it鈥檚 also an opportunity for Epic to amplify its platform power by more aggressively expanding its games store into the mobile marketplace.

Regardless of what happens now, don鈥檛 feel too sorry for Epic. It鈥檚 one of the world鈥檚 most profitable video game developers and a听听in its own right (although at 12% it takes a听听than Apple).

While Android players can still access Fortnite, only iOS players who already have the game installed will be able to keep playing. Alternatively, they may have to shell out听听for a secondhand iPhone with Fortnite installed.

And whether or not iOS players will experience much of the upcoming season 鈥 that will be determined by Epic鈥檚 next move.


This story first appeared in . It was co-authored by Dr Marcus Carter and Dr Kyle Moore, from the School of Literature, Arts and Media, and Ben Egliston, postdoctoral research fellow at Queensland University of Technology.听

The Conversation

Elissa Blake

Media Adviser (Humanities & Science)

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