Apple Sues Epic Games For Breach of Contract Damages

Sunday, 13 Sep, 2020

Epic accuses Apple of abuse of power and wants to enforce through the courts that the rules of the App Store are adjusted.

The App Store requires developers to use Apple's payment system and pay a 30 percent commission. He also compared it to the Google Play Store and the openness of Android as an OS.

Google and Apple representatives did not immediately respond to requests for comment.

That obviously didn't sit well with Epic founder and CEO Tim Sweeney, who shared a Twitter thread arguing that Apple has "lost sight of the tech industry's founding principles" and that the rights of users and creators are the foundation of Epic's actions and lawsuit. Apple had then given Epic Games some time to revert its update that violated the policy, which Epic refused to do, leading to the giant discontinuing Epic's developer account with the App Store last month. Thus, it has chose to ask for reparations from Epic Games, seeking "restitution and disgorgement of all earnings, profits, compensation, benefits, and other ill-gotten gains obtained by Epic as a result of its conduct". Epic argues that it is "likely to suffer irreparable harm", without a preliminary injunction, and that "the balance of harms tips sharply in Epic's favor". With this, Epic bypassed the payment rules of the App Store.

"Over 116 million registered users have accessed Fortnite through iOS - more than any other platform". That features over 150,000 APIs that Apple has created to ease iOS growth, the corporate writes, as properly the Metallic graphics API that Epic itself has praised previously.

Epic now says that Apple's move has caused material harm to its business, claiming in its filing (pdf) that 'Daily active users on iOS have declined by over 60% since Fortnite's removal from the App Store'.

Google and Apple dominate app marketplaces.

Both of these technology companies are locked in a dispute over revenues generated from in-app purchases.

The Apple store has faced some criticism earlier because it makes apple users use its payment system for in-app purchases, which automatically takes in a 30% commission. Epic Games quickly retaliated with a civil antitrust suit against Apple. And the commercial Epic released afterwards seems to reaffirm that the company knew exactly the domino effect its move would have - and meant to have. The argument is, in summary, that it's Epic Games that's in breech of contract.

The next hearing between Epic and Apple is set for 28 September. "Epic breached the License Agreement by making changes without resubmission to Apple".