Epic is suing the iPhone maker in a bid to effect changes in the Apple App Store. The case, which will open in a federal court on Monday, will probe into whether or not Apple has the right to set ground rules, control the payment system and remove apps from its marketplace. It will look into Apple’s share in the revenue from apps, which fetches as much as 30%. Apple says that its commission is the norm in the industry and considers it fair compensation for giving app makers a global storefront, but Epic views the practice differently. Last year, the games maker released an update that dodged revenue sharing, resulting in it being kicked out of Apple’s marketplace. Because of the legal battle between the two firms, Fortnite fans who use Apple devices can no longer get the latest game updates.
Apple’s board to give their testimonies
Apple CEO Tim Cook, Apple’s Senior Vice President of Software Engineering Craig Federighi, Apple Fellow and former SVP of Worldwide Marketing Phil Schiller, and Epic CEO Tim Sweeney are expected to give their testimonies for the trial. Epic Games also filed a complaint with the European Union in February, claiming that Apple is not just harming but also eliminating competition in app distribution and payment processes through anti-competitive restrictions. Other app makers share Epic’s sentiments. In 2019, Spotify (NYSE: SPOT) also filed an antitrust complaint against Apple with the EU claiming that the Silicon-based firm’s 30% cuts from subscriptions made via the App Store are harming platforms that compete with Apple Music.
