Epic responds with a civil lawsuit against Apple. ... but it was shot down by Apple. The basic idea is that reducing discrimination in the American economy is what really got us the prolonged middle-class boom of the postwar era. (“Injunctive relief” is a legal term for a court order that stops someone from doing something. In fact, Epic’s complaint against Google pointedly references previous antitrust litigation involving Microsoft, noting, “Two decades ago, through the actions of courts and regulators, Microsoft was forced to open up the Windows for PC ecosystem.” It goes on to say, “As a result, PC users have multiple options for downloading software unto their computers, either directly from developers’ websites or from several competing stores. In other words, they aren’t public utilities. Epic likewise does not seek a side deal or favorable treatment from Google for itself. The middle class, to me, means that you have a high enough income and enough wealth that you can afford a house and a car and education for your kids and retirement and health care. Android is a fundamentally more open ecosystem; Google allows third parties like Amazon and Samsung to operate their own app stores. (Bloomberg), • The U.S. government seized $2 million in cryptocurrencies tied to Al Qaeda, ISIS and Hamas’s paramilitary arm. Immediately afterward, Fortnite maker Epic Games filed separate antitrust lawsuits against the two companies. (FT), • The plant-based meat purveyor Impossible Foods raised $200 million in its latest funding round, bringing the total it has raised since 2011 to $1.5 billion. However, Epic Games says the 30% fee that Apple takes from developers is not fair and is anti-competitive. The complaint quotes Google as expressing concerns about Epic being able to install and update apps while “bypassing the Google Play Store.”, As for the payment processing side of the lawsuits, Epic describes the 30% commission that Apple and Google charge as “exorbitant,” and says that the fee “forces developers to suffer lower profits, reduce the quantity or quality of their apps, raise prices to consumers, or some combination of the three.” Epic demonstrated this neatly in its original V-Bucks price drop on Thursday, discounting the currency by 20% for customers who cut out the middleman — Google or Apple — and buy V-Bucks directly from Epic. Three tech giants enter this battle royale — who will leave? (NYT), • The former Fed chair Janet Yellen is advising the Biden-Harris campaign. Yale is the second Ivy League school the Trump administration has confronted over its admissions policies. It’s easier to download apps on Android devices outside Google’s store, so it has made less in commissions from sales of Fortnite, which has appeared in its online store only since April. For Epic Games, it is as much a public relations event as anything else. The lawsuits from Fortnite maker Epic Games against Apple and Google this week bear all the hallmarks of a PR stunt. The protests have forced an increasingly large share of white Americans to acknowledge the degree to which systemic racism still exists. Fortnite is one of the most popular video games on the planet, playable across computers, gaming consoles, and mobile devices. Last week wrapped up with a bang, as Epic Games filed a lawsuit against Apple over its "monopolistic practices" on the iOS App Store. Also, new aid for jobless workers looks likely to be smaller than initially suggested, and it’s not clear when it will start, how long it will last or how many workers it will cover. However, Epic says in its lawsuits that special treatment is precisely what it doesn’t want. Epic Games decided to pick a fight with Apple and Google on Thursday, Aug. 13. If Epic rallies app developers to get behind its cause, that could be a problem for the platforms, too. Some of the academic research that caught our eye this week, summarized in one sentence: • The rise in companies’ market power explains a lot of “undesirable” trends. The tech giants insist on handling app payments and take a 30 percent commission on transactions via their stores. On the racial injustice protests, I have a contrarian take: I think the protests, more than any other development in the last couple of months, have given me economic hope for America. This crisis is uniquely aimed at exactly the sort of workers who have been left behind by the economy. Let's also not forget that the Epic Games Store on PC and Mac barely saw any increase in revenue in 2020 despite gaining 52 million new users and giving out over 749 million free games while Steam saw double-digit growth in sales in 2020. However, you’ll only be able to play the current content in the game. That requires agreeing to Apple’s terms, including giving the company final approval over your app and the content within it. However, a protracted legal battle could put more pressure on the tech giants in Washington, Brussels and other places that are looking closely at their market power. In an Aug. 17 legal filing requesting a court order to prevent Apple from doing this, Epic said that Apple’s potential move would “cripple the engine’s desirability and future commercial viability across all platforms,” and that it would “harm developers who already use Unreal Engine.” Epic also asked the court to force Apple to allow Fortnite to return to iOS. Epic Games’ Fortnite legal battle with Apple and Google, explained, Apple and Google removed the app from their respective marketplaces, filed separate antitrust lawsuits against the two companies, Epic introduced a new way to pay for V-Bucks, Apple vs. video games: an explainer of its many showdowns, Epic’s Fortnite fight against Apple and Google is bigger than greed, $61 billion in sales of digital goods and services in 2019, Play Store users spent $24.3 billion in 2019, EU opens Apple antitrust investigations into App Store and Apple Pay practices, Spotify filed an antitrust complaint against Apple, opened two antitrust investigations into Apple, have spoken out in support of the investigations, Epic filed separate civil suits against Apple and then Google, Fortnite vs. Apple: Fortnite players react to lawsuit, App Store removal, previous antitrust litigation involving Microsoft, Fortnite is letting Epic Games break every rule in video games, you can’t buy Kindle e-books in the Amazon or Kindle apps on iOS, Apple threatened to revoke Epic’s access to Apple’s development tools, Apple cannot terminate Epic’s access to Unreal Engine development tools. But app makers would prefer that Google and Apple take a far smaller cut of sales, especially since — in the developers’ opinion — the reality of the mobile software market is that they have no viable alternative to paying that toll. The complaints cite violations of the Sherman Antitrust Act, the 1890 federal law governing business competition; California’s Cartwright Act, which is essentially a state-level version of the Sherman Act; and California’s Unfair Competition Law. (Reuters), • Betting that casual dining will bounce back from the pandemic, Fat Brands is buying the burger chain Johnny Rockets for $25 million (WSJ), • President Trump said he opposed extra funding for the U.S. Even though Google allows third parties to run their own app marketplaces, the reality of the Android ecosystem, according to Epic, is that “there is no viable substitute to distributing Android apps through the Google Play Store.”, For instance, Epic accuses Google of forcing OnePlus, a smartphone manufacturer, to renege on a deal it had made with Epic to put an Epic Games app (for the company’s video games, such as Fortnite) on its phones. Soon after that, Epic filed a lawsuit against Apple to reinstate that and also be able to run its own app store on iOS devices. Those things impeded progress. The lawsuits and legal filings between Apple and Epic Games look to be finally nearing a conclusion, with a trial set for May 2021. Epic introduced its new payment system with a flourish.And the company was ready with almost 150 pages of legal arguments and an ad campaign to hit back when Apple and Google inevitably removed the app from their stores on Thursday.. The App Store generated an estimated $61 billion in sales of digital goods and services in 2019, according to a recent study by an economics firm (a study that Apple itself touted, so presumably the numbers are reliable). Experts weigh in. The lawsuits from Fortnite maker Epic Games against Apple and Google this week bear all the hallmarks of a PR stunt. Apple’s rules are even more stringent, forbidding developers from so much as mentioning external payment options. Epic vs. Apple/Google. On August 13, Epic cut Apple out of its "Fortnite" business, so Apple cut "Fortnite" from the iPhone. Judge dismisses Apple’s “theft” claims in Epic Games lawsuit; Judge denies request to force Fortnite back on iOS App Store pending trial; Apple v. Epic … Jessica S. September 9, ... punitive damages, attorney’s fees and interest. The Trump administration said that Yale discriminated against Asian-American and white applicants. But let’s say half of the $61 billion came from subscriptions and the other half didn’t — if that were the case, Apple’s cut of the total in 2019 would’ve been north of $13.72 billion. Jim Tankersley covers economic and tax policy for The Times in Washington. The lawsuits and legal filings between Apple and Epic Games look to be finally nearing a conclusion, with a trial set for May 2021. But the thrust of both suits is the same: Epic alleges that Apple’s and Google’s respective strangleholds on app distribution and payment processing amount to anti-competitive practices that maintain monopolies in those two markets. How much money are we talking about? In March 2019, Spotify filed an antitrust complaint against Apple with the European Commission, the governing body of the European Union. Here’s what Epic asks for in its complaint against Apple: Epic is not seeking monetary compensation from this Court for the injuries it has suffered. After a two-year investigation, the Justice Department accused the Ivy League university of violating federal civil rights law, bolstering challenges to affirmative action policies that are expected to eventually reach the Supreme Court. Want this delivered to your inbox each day? After the Fortnite ban, Epic sued Apple and Google in federal court, with its C.E.O., Tim Sweeney, promising “a hell of a fight.”. The point of all these charges from Epic is not just to argue that Apple and Google maintain distribution and payment monopolies on their app stores. (This is relevant because Epic parodied the ad in a Fortnite event on Thursday called “Nineteen Eighty-Fortnite,” which launched the company’s #FreeFortnite campaign.). In fact, when Epic launched Fortnite on Android in August 2018, it released it outside the Play Store. We’ve seen millions of Americans either fall short of those dreams or be knocked out of the middle class over the past few decades, for lots of reasons. While settlement is always an option in litigation, a jury trial has been requested and the next steps will involve court hearings, and eventually jury selection. Epic Games vs. Apple and Google Last Thursday, August 13, 2020, Epic pulled a bold stunt that resulted in Fortnite getting removed from both the App Store and the Google Play Store. For instance, Apple has been fighting a class-action antitrust lawsuit against its App Store practices for almost a decade now. I had a finished draft of the book around New Year’s. And the one against Apple begins with an evocative reference to “1984,” Apple’s memorable 1984 Super Bowl commercial, which introduced the Macintosh personal computer with an allusion to George Orwell’s 1949 novel Nineteen Eighty-Four. Apple will be terminating the feature for all of Epic's games on the App Store, so even if you don't play Fortnite, it'd be wise to get an Epic account before Sept. 11 through Epic… Since then, Epic Games Inc., the creator of the game, filed a lawsuit against Apple. The streaming music company alleged that the App Store guidelines “purposely limit choice and stifle innovation at the expense of the user experience,” and characterized the 30% commission as a “tax.” Spotify also pointed out that Apple operates its own streaming music service, Apple Music, and said that the App Store’s 30% commission — since it would apply for Spotify but not Apple Music — functions as an anti-competitive policy. (Bloomberg), • “Think QAnon Is on the Fringe? So Epic has a clear financial incentive here. • Epic’s argument: Apple and Google collectively dominate mobile platforms and cannot be trusted to charge “fair” prices. Apple has responded to Epic Games’ latest salvo in the ongoing dispute between the two companies. If Epic were to succeed in these lawsuits — an outcome that would presumably involve court rulings or legal settlements forcing Apple and Google to change their policies — the company would keep a higher share of revenue from, say, purchases of Fortnite V-Bucks. That’s because Apple and Google removed the app from their respective marketplaces on Thursday for violating their rules. Fortnite creator Epic Games launched a spear at Apple’s gatekept iOS App Store market today with a lawsuit filed in the US District Court of Northern California. If they instead decided to buy the currency through the Play Store or App Store, they’d have to continue paying the (higher) regular price. This fight is largely about — what else? Refinancing mortgages is about to get more expensive. Antitrust laws are written in such a way as to protect competition for the benefit of consumers, so it behooves Epic to illustrate the ways in which Google’s and Apple’s practices are harming consumers, not just the companies’ potential competitors. There is this idea that the work was finished on civil rights. (Isil Erel and Jack Liebersohn), • Companies often confuse luck for skill when hiring a new C.E.O. If we could break down the barriers for women and Americans of color to advance, get good jobs and be paid what they’re worth, we can unleash another productivity boom, which I know is something that Wall Street loves to contemplate. The charges will add an additional $1,400 to refinance a mortgage for the average homeowner. While talk surrounding the Epic Games and Apple situation may have appeared to quieten down, the Fortnite creator and iPhone inventor are still very much butting heads. In fact, with the court battles that lie ahead amid the backdrop of an increased appetite for regulation of Big Tech — in both the U.S. and EU — we may not know for years how Epic’s lawsuits against Google and Apple will turn out. Google and Apple each take a 30% cut of purchases made within apps in the Play Store and App Store, respectively. The good news: New claims for U.S. state unemployment benefits fell below one million last week for the first time since March. Epic is ready with its lawsuit and Apple will find very few sympathetic ears. Yes. ... but it was shot down by Apple. Apple files counter-suit against Epic in Fortnite lawsuit. I hope that it’s both enlightening and challenging. Has the pandemic changed your thinking on this? We got impatient. Or the protests against racial inequality? After hearing oral arguments from Epic Games and Apple on Aug. 24, a federal judge issued a split decision that night. ... Epic vs. Apple lawsuit heads to trial in 2021. August 17th: Epic reveals that Apple has threatened to terminate its developer account. But it is important to note that this is only a temporary injunction and it probably won’t have any significance on the court’s final decision. Players on Android and iOS now had the option to buy V-Bucks via “Epic direct payment,” a route that offered them a 20% discount. The lawsuit itself is complex, and there have already been several major developments in the case. It wants you to think that its actions are true of heart and for the betterment of the industry. It follows moves by Epic Games, the maker of Fortnite, encouraging the game’s mobile-app users to pay it directly rather than going through the online stores, which take a cut of sales. But as of Thursday, Aug. 13, it’s no longer available to download on mobile platforms — not on iOS via the Apple App Store, and not on Android except outside the Google Play Store. In this battle of Epic games vs Apple, Apple kicked out Fortnite out of the App Store hours as Epic released a silent update that allowed users to pay directly to Epic Games which was against the App Store Contract. Epic Games vs. Apple: Why this big lawsuit is important to all emerging companies – and us Apple Epic Games startup spotlight Image by Jeff Jacobs from Pixabay Epic Games decided to pick a fight with Apple and Google on Thursday, Aug. 13. Instead, Epic is seeking 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. Which is worse for Apple: No Fortnite or no WeChat? Apple and Google only delisted the Fortnite app itself, preventing users from finding it in their app stores via search. Indeed, in Apple’s statement about removing Fortnite from the App Store, the company said that “[Epic’s] business interests now lead them to push for a special arrangement.”. Epic also asserts that the only reason the fee is that high is because of the monopoly power that the companies wield over the app distribution and payment processing markets on iOS and Android. The saga between Epic Games and Apple publicly started on August 13, with Epic updating the "Fortnite" iOS and Android apps with a feature enabling users to pay Epic … “At the most basic level, we’re fighting for the freedom of people who bought smartphones to install apps from sources of their choosing, the freedom for creators of apps to distribute them as they choose, and the freedom of both groups to do business directly,” Sweeney said Friday in a Twitter thread. A senior lawyer said the head of the agency, Eugene Scalia, had sought a low settlement with Oracle, the tech giant, in a long-running dispute over pay discrimination that originated in the Obama administration. Both Apple and Google require that payments for in-app digital content — e.g., Fortnite V-Bucks — be processed via their stores’ respective internal billing systems. Real estate investors are taking owners to court. (Sandra Black, Jeffrey Denning, Lisa Dettling, Sarena Goodman and Lesley Turner). No doubt by now, most of you are aware of a huge lawsuit filed against Apple by Epic Games over Apple's App Store policies and guidelines, its 30% cut, and what Epic calls an unfair monopoly on the distribution of iOS software. What could it mean for the Android and iOS software marketplaces? The two tech giants couldn’t let that stand, so both companies removed Fortnite from their marketplaces. Epic Games has filed a lawsuit against Apple over the removal of Fortnite from the App Store.. The research says that 40 percent of post-1960 growth in this country came from breaking down occupational barriers for women of all races and for Black men. No doubt by now, most of you are aware of a huge lawsuit filed against Apple by Epic Games over Apple's App Store policies and guidelines, its 30% cut, and what Epic calls an unfair monopoly on the distribution of iOS software. [...] Android users and developers likewise deserve free and fair competition.”, Epic says that if it weren’t for Apple’s prohibitions against non-Apple app stores on iOS, Epic would run its own marketplace and “would provide users the choice to use Epic’s or another third-party’s in-app payment processing tool.” In its complaint against Google, Epic alleges that “Google has eliminated competition in the distribution of Android apps using myriad contractual and technical barriers,” such as “intimidating messages and warnings” shown to users who try to install apps from sources outside the Play Store. Interest rates remain at record lows, but two of America’s largest mortgage finance firms, Fannie Mae and Freddie Mac, announced a 0.5 percent fee, citing a need to cover anticipated losses related to the pandemic. While Epic’s case against Google seems to be in a holding pattern of sorts, the Fortnite maker’s lawsuit with Apple has only continued to escalate. But … On August 13th, Apple removed one of the biggest games in the world from its App Store; Fortnite. His new book, “The Riches of This Land: The Untold, True Story of America’s Middle Class,” is out this week. A full hearing on the matter is scheduled for Sept. 28. And here’s the very similar language from Epic’s complaint against Google: Epic does not seek monetary compensation from this Court for the injuries it has suffered. Epic is ready with its lawsuit and Apple will find very few sympathetic ears. (Mario Daniele Amore and Sebastian Schwenen), • Capital gains tax cuts do not pay for themselves. As we explained above, App Store and Play Store developers are forced to process in-app purchases via Apple’s and Google’s own billing systems. (For more, check out our report on Epic’s antitrust lawsuits with comments from legal experts.). Another problem with Apple and Google handling all the payments themselves, Epic says in both legal complaints, is that “Epic is unable to provide users comprehensive customer service relating to in-app payments.” The company adds, “[Apple/Google] has little incentive to compete through improved customer service because [Apple/Google] faces no competition and consumers often blame Epic for payment-related problems.”, Can Epic Games actually take on Apple and Google? The lawsuit itself is complex, and there have already been several major developments in the case. The past few months have certainly been a … Why is it happening, and why now? ), The lawsuits contrast iOS and Android with the fully open ecosystems of related platforms on computers — Apple’s own Mac OS, and Microsoft’s Windows. The highly publicized case between the video game publisher and the tech developer has now been presented to EU authorities.This adds to the list as the US, the UK and Australia are already active fields of this ongoing war.The US trial even has a set date - May 3, when the going is really gonna be heated up. Please email thoughts and suggestions to dealbook@nytimes.com. On August 13, Epic, developer of the wildly popular battle-royale game Fortnite, began baiting Apple and Google into legal battles. Apple is simply not used to game studios challenging its dominance, and now all that is about to change in a very big way. The lawsuits and legal filings between Apple and Epic Games look to be finally nearing a conclusion, with a trial set for May 2021. This is not a genuine negotiation. (Epic points out that third-party payment services such as PayPal and Square charge a processing fee in the realm of 3%, one-tenth of the app store commission.) As for the outcome of these lawsuits, well, it’s far too early to have any indication right now. Also, didn't their store flop on Android? For their part, Apple and Google say their commissions are a fair fee for the service they’re providing — not just the logistics of distributing apps (like bandwidth costs) and processing transactions, but the safety and security of these approved ecosystems. Mezzanine lenders like hedge funds and private equity firms are suing commercial property landlords and developers to foreclose on assets and recoup losses on delinquent debts. This gatekeeper policy is at the center of antitrust complaints against Apple and Google in the U.S. and Europe. And will you still be able to play Fortnite on your phone? It charges developers a 12 percent commission, which it says is still comfortably profitable. • SoftBank will lend $1.1 billion to WeWork to help it cover costs related to the pandemic. Apple CEO Tim Cook is squaring off against Epic Games and Fortnite, with the integrity of Apple’s App Store commission structure at stake. • Since March 2018, Fortnite has been downloaded more than 130 million times on iPhones and iPads, generating about $360 million in revenue for Apple, according to Sensor Tower. The latest episode of the Epic Games vs. Apple saga took place this morning, and it appears we’re still at square one. Postal Service, raising fears about disruptions to mail-in voting, but he later (partly) walked back his comments. Days after Epic filed suit against Apple and Google, Apple told Epic that it would take further action — action that extended beyond Fortnite alone. A … The Labor Department chief was accused of interfering in a pay discrimination case. Money is the key reason that Epic — and many other companies that publish mobile apps — have a problem with the iron grip that Apple and Google maintain over their marketplaces. Nor is Epic seeking favorable treatment for itself, a single company. Mr. Sweeney, the game maker’s chief, framed the dispute as no less than “critical to the future of humanity,” citing the risk of submission to “corporations who control all commerce and all speech.”, • Spotify, which has waged a similar battle with Apple, issued a statement in support of Epic and against what it called Apple’s “unfair practices.”. Epic Games' lawsuit and tug-of-war with Apple over App Store fees are part opportunism, given big tech scrutiny, part good business, and a lot of leverage. And, perhaps, hopeful. Some of that total consists of subscriptions, so the math is fuzzy because of the differing commissions. The disagreements between Apple and Epic Games even led to a lawsuit whose judgment will be determined in May next year, 2021. What’s one of the main things that went wrong? Recognition of a problem is always the first step toward policy. (“These guidelines create a level playing field for all developers and make the store safe for all users,” Apple said in a statement.) Losing the mostly young fans of Fortnite is bad, but the Trump administration’s threat to ban U.S. companies from doing business with China’s WeChat could affect vast numbers of iPhone users. And in recent years, they’ve begun to publicly air this grievance. Last week wrapped up with a bang, as Epic Games filed a lawsuit against Apple over its "monopolistic practices" on the iOS App Store. The first verdict in the Epic Games vs. Apple complex legal battle is bad news for Fortnite but good news for the Unreal Engine. Epic Games are taking Apple all over the world. The Epic Games vs. Apple (and Google) saga is getting nastier. Fortnite won't be back in the App Store for a long while. But former antitrust regulators and … One of the battles features a retail complex in Times Square that’s owned by the family of Jared Kushner, President Trump’s adviser and son-in-law. The Unreal Engine supports games on a wide variety of platforms, including Apple’s iOS and macOS, and countless third-party developers rely on the Unreal Engine for their own games. Apple vs Epic Games. Amazon doesn’t want to give Apple a 30% cut of book sales, so it forces iOS users to go outside the apps and make purchases in a web browser (or in an app on a different platform). They fought affirmative action in court, and the Reagan administration waged a war on drugs that led to the mass incarceration of Black men. The fight between Epic Games and Apple, a public feud and lawsuit about App Store policies, is flush with symbolism. fortnite vs. apple lawsuit. Epic vs. Apple Lawsuit Enters EU. Epic sued, and the case is far from over. With direct payments, Epic can pass on some savings to the customer. And that would be about 28.5% of the company’s total services revenue for the calendar year, which amounted to $48.13 billion. The game is made using a game development toolset called the Unreal Engine, which Epic also produces. Daimler settled emissions-cheating charges by paying a $2.2 billion fine. (CNN), • Despite European governments’ offering furlough lifelines to workers, many with irregular contracts in tourism, catering and service industries have been excluded. Whatever the case, the longer these disputes endure, the bigger the risk that people who feel they can’t live without a certain game or messaging app will think twice about buying Apple devices. The money covers federal fines and a class-action suit by Mercedes owners, at a fraction of the $20 billion that fellow German automaker Volkswagen paid to settle similar charges.
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