Apple will close Epic’s developer account on August 28th
Epic’s Preliminary Statement included with its court filing explains everything from Epic’s point of view. It says, “Apple has for years used its complete monopoly over the distribution of apps to the billion users of iOS, the Apple operating system running on all iPhones and iPads, to coerce app developers into using Apple’s payment platform, In-App Purchase (IAP) for all in-app purchases of digital content used in their apps. By tying IAP to app distribution, Apple eliminates all competition in the market for in-app payment processing, allowing it to impose an exorbitant 30% “app tax” on all in-app purchases of in-app content.”
Apple has said that it is willing to work with Epic but the developer notes that “Apple’s actions will irreparably damage Epic’s reputation among Fortnite users and be catastrophic for the future of the separate Unreal Engine business.” The optics just do not look good for Apple especially since the App Store and the tech giant’s 30% cut are under the regulatory microscope in the states and Europe.
Epic believes that it is “likely to succeed on the merits of its claims,” but is asking for the restraining order anyway. That is because it is concerned that it will be irreparably harmed before the court reaches a final decision. It should also be pointed out that Epic is not asking for monetary damages, nor it is asking for a ruling that would favor it above other companies. What Epic is asking for is “injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers.”
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