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”.
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
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
-
Average Brits want to retire five years before they can – who has the widest retirement gap?Brits are expecting to work for longer than ever but there are big disparities in the number of extra working years predicted. A small tweak could help close the gap
-
Pierre-Édouard Stérin wants to make France great againConservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Global investors have overlooked the top innovators in emerging marketsOpinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Pinewood Technologies: a drive for growthPinewood Technologies’ platform is one of the best in the business. Investors should buy in
-
'EV maker Faraday Future will crash'Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
-
Investors should cheer the coming nuclear summerThe US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
8 of the best houses for sale with folliesThe best houses for sale with follies in the grounds – from a five-storey Victorian Gothic tower in Tonbridge, Kent, to a former mill in Oxfordshire with gardens that include a folly on an island in a lake
-
A tale of two Reits – why performance matters for valuationAEW UK and Regional are two Reits that are valued very differently, despite a shared focus on properties outside London
-
Healthcare stocks look cheap, but tread carefullyShares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
