Epic Games does battle with Google and Apple
Fortnite maker Epic Games has become embroiled in a showdown with Apple and Google over in-game purchases.
Epic Games, the maker of the video game Fortnite (pictured), has become embroiled in a showdown with Apple and Google. The group has introduced a way of paying for in-game purchases that bypasses Apple’s App Store and the Google Play Store – as well as the tech giants’ 30% commissions.
Epic says that it is stopping its players from being ripped off and has launched an antitrust lawsuit. Apple and Google have responded by removing one of the world’s most popular video games from their stores. Game developers loathe the 30% “Apple Tax”, says Chaim Gartenberg in The Verge. Yet Apple cannot easily afford to drop the charge. While Apple executives like to talk about revenue from the likes of Apple Music, the income from such services is “dwarfed” by its App Store earnings. Last year it made about $18.3bn from its cut of these sales, nearly 40% of total service revenue. It takes chutzpah to face down Apple and Google at the same time, says Dan Gallagher in The Wall Street Journal. Yet Epic has some major industry backers. Apple will say the iPhone’s minority share of the smartphone market means it is not a monopolist, but there are more serious questions about how it exploits the App Store. “No developer can get an app on Apple’s devices without the company’s approval.”
Apple may be facing “a serious antitrust reckoning”, says Alex Webb on Bloomberg. It has evolved into a near-$2tn business, but still has the mentality of the upstart underdog. It is “a 120-pound Great Dane that still thinks it’s a puppy”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Alex Rankine is Moneyweek's markets editor
-
Twenty 'finfluencers' questioned under caution by the UK regulator
The individuals were interviewed voluntarily using the Financial Conduct Authority’s criminal powers
By Chris Newlands Published
-
Number of ISA millionaires triples in three years
The number of people with £1 million in their ISAs has tripled in three years to reach 3,180. But could next week’s Budget put an end to future ISA millionaires?
By Ruth Emery Published
-
Should you invest in Canada?
Canada presents a compelling opportunity for investors who want to look beyond the US. Greg Eckel of Canadian General Investments highlights four favourites
By Greg Eckel Published
-
What will a broken-up Google look like?
The US courts have ruled that Google is a monopoly, leaving it facing the prospect of a break-up. WIll that be a good thing?
By Matthew Lynn Published
-
How will the UK gambling sector be hit by the Budget?
There are concerns for the UK gambling sector in the lead-up to the Autumn Budget. What could be on the cards?
By Dr Matthew Partridge Published
-
HSBC returns to cost-cutting plan
HSBC is set to revamp its commercial banking division – but will it come at a cost?
By Dr Matthew Partridge Published
-
Will European stocks bounce back?
European stocks have looked unattractive for some time – will they bounce back?
By Alex Rankine Published
-
British American Tobacco goes smokeless – can it survive?
British American Tobacco’s core product is struggling, but new areas bode well, says Bruce Packard
By Bruce Packard Published
-
Pfizer shares rise as US investor takes $1 billion stake
Pfizer shares are on the up since US activist investor Starboard Value built up a stake in the drug maker. But strategic options appear limited
By Dr Matthew Partridge Published
-
LSL Property Services: a profit-machine in the property sector
LSL covers every area of the residential real estate market and should thrive after its shake-up
By Rupert Hargreaves Published