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”.

Recommended

China’s economy is heading for a sharp slowdown
Chinese economy

China’s economy is heading for a sharp slowdown

With a slowing property market, Covid lockdowns sapping growth and the CSI 300 stock index down by 22% this year, China’s economy is in trouble.
6 Oct 2022
5 of the world's best stocks
Share tips

5 of the world's best stocks

Concentrating on a few highly profitable companies that excel in their fields can reduce the overall risk in your portfolio, says Rupert Hargreaves. H…
6 Oct 2022
The dangers of derivatives as the “Goldilocks era” ends
Investment strategy

The dangers of derivatives as the “Goldilocks era” ends

That this is no longer a benign environment for investors, says Andrew Van Sickle. But – as the recent pension-fund derivatives blow-up shows – not ev…
6 Oct 2022
There’s still time to submit your energy meter reading to avoid a higher charge
Personal finance

There’s still time to submit your energy meter reading to avoid a higher charge

You need to submit your gas and electricity readings as soon as possible to avoid overpaying after the October energy price increase.
6 Oct 2022

Most Popular

Should you take a 25% tax-free pension lump sum in instalments?
Pensions

Should you take a 25% tax-free pension lump sum in instalments?

Taking out a 25% tax-free lump sum sounds appealing but it might not be the best way to manage your pension
30 Sep 2022
Markets may have bounced, but this is not the end of the bear market
Stockmarkets

Markets may have bounced, but this is not the end of the bear market

Stocks are back on the rise, commodities and precious metals prices are up – even the pound has rebounded. But none of this is typical of bull markets…
5 Oct 2022
October’s Premium Bonds: how to check if you are a winner
Savings

October’s Premium Bonds: how to check if you are a winner

NS&I has added almost 110,000 more prizes to October’s Premium Bond draw – are you a winner?
4 Oct 2022