![]() According to its experts’ pretrial submissions, Apple controls between a quarter and a third of all digital gaming transactions. Apple describes this as the market for digital gaming transactions, and it doesn’t have close to monopoly power there. That includes not only the App Store, but also Android phones, PCs, and video-gaming consoles. (Epic makes a similar argument about the relevant market for in-app purchases on Apple devices, which Apple also exclusively controls.)īy contrast, Apple sees the relevant market as anywhere Fortnite can be downloaded or played. By definition, Apple has a monopoly in that market because it requires that all apps on iOS devices be distributed through the App Store. Epic argues that the relevant market is limited to the market for apps on Apple devices. That’s exactly what’s happening in this case. ![]() That would break Apple’s “walled garden,” siphon off millions of dollars of Apple’s profits, and change the iPhone as we know it. If Epic prevails in the suit, it would likely be free to create its own app store on iOS devices, where it could distribute its games and apps from other developers. Thanks to that stunt-which included a very pointed parody of Apple’s famous “1984” ad that cast the once-rebellious device-maker as the modern internet’s Big Brother-the two companies are now embroiled in a dispute that could impact the future of the App Store, one of the most important, and lucrative, gateways in tech. Last week, on the first day of the trial in Epic Games’ antitrust lawsuit against Apple, Apple’s attorney made an argument that amounted to “we shouldn’t even be here.” The dispute between the two companies began last year when Epic intentionally broke Apple’s rules by setting up its own in-app payment system in the iOS version of its game Fortnite, getting banned from the App Store in the process.
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