The creator of “Fortnite” Epic Games has prepared for an honest belief in dust against Big Tech and is gaining the support of other prominent software developers in the process.
Spotify Technology Inc. SPOT,
and Match Group Inc. MTCH,
recently issued statements in support of Epic, which filed a lawsuit against Apple Inc. AAPL,
and Alphabet Inc GOOG,
Google late Thursday, claiming monopolistic practices.
The tech giants, who represent the two dominant intelligence systems in the world, withdrew “Fortnite” from their app stores for violating their in-app payment rules after Epic tried to offer in-game currency discounts to players who bypassed Apple and Google with acquisitions.
“We fully support Epic Games’ efforts … to show how Apple uses its dominant position and unfair policies to harm consumers, app developers and entrepreneurs,” a Match Group spokesman said in a statement Thursday. . “Regulators across the globe have expressed similar concerns and are considering” what some describe as “Apple’s arbitrary practices.”
A Spotify spokesman said the company “applauded[s] Epic Games’ decision to take a stand against Apple sheds further light on Apple’s abuse of its dominant position. The upstream music giant argued in its statement Thursday that “Apple’s unfair practices have disadvantaged competition and deprived consumers for a long time.”
Facebook Inc. joined the criticism as well, with an executive telling Bloomberg News that Apple did not waive its 30% tariff or allowed Facebook to use its payment tool in a new feature that the media giant social was going straight. allow businesses to host virtual events. Alphabet is also not waiving the fee but will allow Facebook to use its own payment processing tool, according to the Bloomberg section, and Facebook is not getting a revenue cut from this feature.
Microsoft Corp had even weighed in before the Epic saga after Apple decided that the company could not list its xCloud game streaming service in the App Store because Apple would not be able to review all the games made available through the service. Microsoft argued that Apple “consistently treats gaming applications differently, enforcing softer rules for non-gaming applications even when they include interactive content,” according to a statement quoted by The Verge.
Both Apple and Google hold as much as 30% of all digital merchandise purchases made in apps that were downloaded through their app stores, a practice that earns increasing returns from developers and government officials. Spotify filed an antitrust lawsuit against Apple in Europe last year, arguing that the App Store Payment Company policies make it difficult for other apps to compete effectively against Apple Music.
Regulators are looking at Apple App Store practices, which were also a focus of an Antitrust hearing of a House of Representatives last month. Lawmakers questioned Apple CEO Tim Cook on the company’s App Store “receiving tariffs” and what would prevent the company from increasing its App Store-related shopping cuts down the line.
Read more: Antitrust questions bruise, but do not spoil Big Tech CEOs in historic hearing
Apple said in a statement Thursday after the removal of Fortnite that its App Store guidelines are “designed to keep the store safe for our users” and that the company “will make every effort to work with Epic for resolve these violations so that they can be returned ‘Fortnite’ to the App Store. “
The Match Group, which operates Tinder and other dating apps, could be a key beneficiary of the more developed app store practices, analysts said. Developers generally pay Apple a 30% reduction in digital service revenue for the first year of a repeat subscription and 15% for all remaining years, but many dating app users are not registering at plans paid for many years, means compliance by paying 30% in full more often than some other developers.
Apple shares have gained 48% over the past three months as the industrial average DJIA Dow Jones,
has increased 18%.