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Why We Fight

Epic gave Fortnite players on iOS and Google Play a choice between Apple/Google
payment and Epic direct payment, passing on savings to direct purchasers. Both
Apple and Google retaliated by blocking Fortnite updates. Further, Apple
threatened to prevent Epic from creating software for all Apple devices — not
just on Fortnite but all of our games, and Unreal Engine too.

Apple demanded that Epic revert Fortnite to exclusively use Apple payments.
Their proposal was an invitation for Epic to collude with Apple to maintain its
monopoly over in-app payments on iOS, suppressing free market competition and
inflating prices. As a matter of principle, we refused to do so.

You, as a mobile device owner, have the right to install apps from sources of
your choosing. Software makers have the right to freely express their ideas and
to compete in a fair marketplace. Apple and Google’s policies take these
freedoms away.

Apple’s policies are so restrictive that they block gaming services like
Microsoft xCloud, NVIDIA GeForce NOW, and Google Stadia from existing on iOS.
Apple’s policies would have even blocked the World Wide Web if it had been
invented after the iPhone, because Apple policies disallow running code not
reviewed by Apple, accepting payments directly from customers, and accessing
content not reviewed by Apple — all fundamental features of the web. These
policies, together with Apple’s chilling enforcement strategy, directly impede
innovation and invention of entirely new kinds of apps, games, and businesses.

Epic is one of the many game developers who have long worked to advance better
and fairer platform practices, such as cross-platform gameplay, communication,
accounts, and items in Fortnite on 7 platforms (though now only 6). We are
committed to securing lasting freedoms for all. This is why we fight.


What We Are Fighting For

Two companies, Apple and Google, should not have a stranglehold over how people
access the internet on their mobile devices. Leveling the playing field for
developers and giving consumers control over their mobile devices will require: 

 * Competition in app distribution. Consumers should be able to access apps
   wherever they want to - whether it’s from Apple or Google’s app stores, an
   alternative app store or directly from a developer. 

 * Competition in in-app payments. Google and Apple must be prohibited from
   using their control over Android and iOS app distribution to force developers
   to use their payment systems and charge a monopoly tax. Allowing developers
   to offer alternative payment options for in-app purchases would lower prices
   for consumers. 

 * Prevent Apple and Google from circumventing the laws. Policymakers and
   regulators who are working to open the mobile app ecosystem to competition
   must bar Apple and Google from shifting their anticompetitive practices and
   taxes to services they don’t provide, for example for payments processed by
   third party providers. 


Together, these three pillars will open up the mobile app market to competition
and end Apple and Google’s harmful practices. 
 

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Epic has taken legal action to end Apple and Google’s anti-competitive
restrictions on mobile device marketplaces around the world.


Apple Legal Proceedings

US

 * August 13, 2020: Epic files a Complaint for Injunctive Relief with the United
   States District Court, Northern District of California, commencing legal
   proceedings against Apple in the US [link]

 * August 17, 2020: Epic files a Motion for a Temporary Restraining Order
   against Apple [link] 

 * August 23, 2020: Epic files a Reply Brief in Support of the Motion for a
   Temporary Restraining Order against Apple [link]   

 * September 4, 2020: Epic files a Motion for a Preliminary Injunction against
   Apple [link]  

 * April 8, 2021: Epic files Findings of Fact and Conclusions of Law [link] 

 * May 28, 2021: Epic files updated Findings of Fact and Conclusions of Law
   after the conclusion of the Epic v. Apple trial concluded [link]  

 * January 20, 2022: Epic files Opening Brief with the United States Court of
   Appeals for the Ninth Circuit [link] 

 * January 27, 2022: Amici file briefs in Epic's appeal with the United States
   Court of Appeals for the Ninth Circuit [link]

 * May 25, 2022: Epic files a Reply Brief on Appeal and Response Brief on Cross
   Appeal of Appellant [link]

 * September 27, 2023: Epic files a cert petition with the United States Supreme
   Court [link]


Australia  

 * November 16, 2020: Epic files a legal claim in the Federal Court of
   Australia, commencing legal proceedings against Apple in Australia [link]


EU

 * February 2021: Epic files an antitrust complaint against Apple in the
   European Union with the European Commission [link] 


UK 

 * March 2021: Epic files a complaint in support of the United Kingdom
   Competition and Markets Authority’s (CMA) investigation into Apple’s App
   Store policies [link]



Google Legal Proceedings

US 

 * August 13, 2020: Epic files a Complaint for Injunctive Relief with the United
   States District Court, Northern District of California, commencing legal
   proceedings against Google in the US [link] 

 * August 20, 2021: Epic files an amended Complaint in its legal proceedings
   against Google [link]

 * November 15, 2021: Epic files an Answer and Defenses in response to Google’s
   Counterclaims [link]

 * April 28, 2022: Epic files a Notice of Motion and Motion for a Preliminary
   Injunction [link]

 * May 20, 2022: Epic and Google file a Joint Stipulation and Proposed Order
   regarding Epic's Request for Preliminary Injunction [link]

 * October 13, 2022: Epic and other plaintiffs file a Notice of Motion for
   Sanctions [link] 

 * November 17, 2022: Epic files a Second Amended Complaint for Injunctive
   Relief [link] 

 * March 27, 2023: Epic and other plaintiffs file a Supplemental Brief on
   Google’s Chat Production [link] [key exhibits]


Australia 

 * March 8, 2021: Epic files a legal claim in the Federal Court of Australia,
   commencing legal proceedings against Google in Australia [link] 


UK 

 * December 29, 2020: Epic files a claim against Google with the UK Competition
   Appeal Tribunal [link]



Regulatory Filings

US

 * May 23, 2022: Epic submits comments to the National Telecommunications and
   Information on the Report on Competition in the Mobile App Ecosystem [link]


Australia

 * April 1, 2022: Epic submits comments to Australia Competition and Consumer
   Commission (ACCC) on the Digital Platform Services Inquiry [link]


UK

 * February 10, 2022: Epic submits a response to the Competition and Markets
   Authority (CMA) Interim Report on Mobile Ecosystems [link]

 

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FAQ


Why are players blocked by Apple and Google from updating Fortnite?

After we added direct Epic payments to save players up to 20%, Apple and Google
retaliated by blocking Fortnite players from installing and updating the game
through the App Store and Google Play. Apple and Google demand that game
developers use their payment processing service, which charge an exorbitant rate
of 30%. Apple and Google block developers from using more efficient payment
methods such as Mastercard (including Apple Card), Visa, and PayPal, which
charge rates of 2.5% to 3.5%, and therefore prevent developers from passing the
savings on to customers.

January 30, 2023 Update: Beginning January 30, Fortnite players using the 13.40
app build previously available on iOS, Mac, and Android via Google Play can no
longer spend V-Bucks and must be over 18 to play. We want all versions of our
games to use the current suite of Epic Online Services including parental
controls, purchasing defaults, and parental verification features. We are not
able to update the app on these platforms given Apple and Google’s restrictions
on Fortnite.

Why shouldn't Apple and Google collect 30% on App Store and Google Play sales?
Aren't they providing the store where developers sell software?

Apple intentionally locks down consumer iOS devices to prevent users from
installing software directly from developers, as consumers are free to do on PC
and Mac. We know this is an intentional strategy because iOS does fully support
installing software from the web -- but only allows it for corporations. Apple
uses this direct-installation blockade in order to force consumers to use their
App Store, and then demands that developers use their payment processing
service. By blocking consumer choice in software installation, Apple has created
a problem so they can profit from the solution.

Google’s strategy is distinct: Google advertises Android as an open platform,
and Android devices support installation of third-party software such as
Fortnite and the Epic Games App from the web. However, Google obstructs software
installation and updates with scary warning screens that place third-party
software sources at a disadvantage to Google Play, and uses its Google Apps
suite contracts with carriers to obstruct pre-installation of competing stores
on Android smartphones. As a result, Google Play has a vast majority of Android
store market share in territories where it’s available.

Didn’t Apple and Google announce that they are lowering the fee for some
developers to 15 percent? Isn’t that a good thing? 

While a reduction in the Apple and Google app taxes may alleviate a small part
of the financial burden developers have been shouldering, this does not address
the root of the issue. Whether it’s 15% or 30%, for apps obtained through the
App Store or Google Play Store, developers are forced to use their proprietary
in-app payment services. iOs and Android need to be fully open to competition,
with a genuinely level playing field among platform companies, app creators, and
service providers. Competition in payment processing and app distribution is the
only path to a fair app marketplace.

What outcome does Epic hope for to resolve this blockade from both Apple and
Google?

Epic’s position is that all mobile developers and consumers have the right to
choose alternate payment providers that charge less, as is the norm on all other
general-purpose computing platforms, including Web, Windows, and Mac. We expect
to see a general change in smartphone practices industry-wide for all developers
that brings greater value and freedom of choice to consumers. We expect Apple
and Google to unblock Fortnite.

Do Apple and Google block all apps from processing direct payments?

No. Apple and Google allow thousands of apps on the App Store and Google Play to
accept direct payments, including commonly used apps like Amazon, Grubhub, Nike
SNKRS, Best Buy, DoorDash, Fandango, McDonald's, and StubHub. Apple and Google
are just blocking direct payments for certain products (like games) and
companies (like Epic).

Epic believes that all mobile users have a right to save money using more
efficient purchasing options. Adding our own payment system allows us to offer
players choice while passing along savings, just like other apps are allowed to
do. This choice provides a more level playing field on mobile stores while
saving players money, which Apple and Google should agree is a positive thing
for everyone!

Does a new payment method on mobile mean purchases there are less safe?

No. In operating Fortnite on open platforms and operating the Epic Games Store,
Epic has processed over $1,600,000,000 of direct payments successfully, and uses
industry trusted encryption and security measures to protect customer
transactions.

Clearly Apple and Google acknowledge that third party payment services are safe
and acceptable for goods and services. Epic direct payment simply offers players
the same kinds of payment options as these other apps.

Why don't you offer purchases outside of the app, as Netflix did with their
subscriptions?

This is a user-unfriendly solution. Apple even prohibits apps like Netflix from
even telling customers how to pay for their subscription services outside of the
app. Epic wants to give all customers simple, in-app purchasing options free of
obstruction.

Why doesn’t Epic capitulate to Apple and Google’s demand to remove Epic direct
payment?

We have chosen to fight Apple and Google’s policies on behalf of all consumers
and their right to have access to more efficient payment methods and to receive
the best prices available.

Apple and Google have rules. Why is Epic expecting an exception to those rules?

We don't seek a special exception for Epic. We firmly believe both Apple and
Google’s policies must be changed for all developers. For over a decade, Apple
and Google have crafted and proliferated a tangled web of rules and policies to
impose a 30% tax on apps while preventing competitors from offering a better
deal. That’s around 10x more than what a typical transaction may cost on
competing payment processing services such as Visa, Mastercard, and PayPal,
which charge rates of 2.5% to 3.5%. When competition is stifled, the customer
always loses.

Their rules are designed to cement their monopolies, to limit consumer choice,
and to stifle competition in digital goods specifically. Apple and Google don’t
force customers to use their payment system to add 30% to the price of their
dinner when they purchase a meal through Grubhub or DoorDash. Apple even allows
Amazon Prime Video to process payments directly as a special deal while holding
other apps to a different standard. So why do customers have to use Apple and
Google’s payment services and increase their prices to pay a 30% app tax for
games such as Fortnite? There’s no good reason.

Why is Epic advocating for open mobile platforms?

Mobile devices are essential computing devices upon which we conduct our social
and professional lives and engage in education, commerce and entertainment.
Apple and Google cannot rightly control the terms of physical and digital
commerce and use their monopoly power over devices to prevent competition in
payment processing, stores, and app curation. Apple and Google have artificially
restricted iOS and Google Play so that there is no competition, so that creators
earn less, and so that consumers are forced to pay higher prices. There’s no
reason why smartphone app stores and payment processing should function any
differently than a personal computer.

What if a player wants a refund?

Unfortunately, Apple does not allow Epic Games to directly refund players and
instead require players to ask Apple directly for a refund. Please follow these
instructions to ask Apple for a refund.

Note: On August 28, 2020, we issued a full refund to all customers who made
purchases on iOS through Epic direct payment before August 28, 2020. There’s no
action needed on your part and you will retain V-Bucks and items purchased.

Google players can submit a refund request by contacting Epic customer support
at https://www.epicgames.com/customer-service. Refunds may be granted upon
eligibility.

Where can I read more on this topic?

What Apple’s Fortnite Fee Battle Is Really About

Apple, Its Control Over the iPhone, The Internet, And The Metaverse

He believed Apple’s App Store was safe. Then a fake app stole his life savings
in bitcoin.

Google accused by developer of retaliation for cooperating with House antitrust
investigation

 

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About Epic Games

Founded in 1991, Epic Games is an American company founded by CEO Tim Sweeney.
The company is headquartered in Cary, North Carolina and has more than 40
offices worldwide. Today Epic is a leading interactive entertainment company and
provider of 3D engine technology. Epic operates Fortnite, one of the world’s
largest games with over 350 million accounts and 2.5 billion friend connections.
Epic also develops Unreal Engine, which powers the world’s leading games and is
also adopted across industries such as film and television, architecture,
automotive, manufacturing, and simulation. Through Unreal Engine, Epic Games
Store, and Epic Online Services, Epic provides an end-to-end digital ecosystem
for developers and creators to build, distribute, and operate games and other
content.

   
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© 2024, Epic Games, Inc. All rights reserved. Epic, Epic Games, the Epic Games
logo, Fortnite, the Fortnite logo, Unreal, Unreal Engine, the Unreal Engine
logo, Unreal Tournament, and the Unreal Tournament logo are trademarks or
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