Adam Kos The ongoing case surrounding the Epic Games vs. Apple brings rather interesting information that we would never know otherwise. In a note to investors, JP Morgan analyst Samik Chatterjee highlights some of the details and data about the App Store used as evidence in the trial's opening arguments.
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Pavel Jelic For example, Apple estimates that it owns roughly 23 to 38% of the entire App Store game transaction market, with the rest split between other companies. Thus, Chatterjee says, this data supports the clear view that Apple has no monopoly power in this segment. In addition, during the opening speech of Apple's lawyers, they emphasized the fact that its 30% commission on purchases of applications and games and In-App purchases in them is the industry standard. Other companies that charge the same amount include Sony, Nintendo, Google and Samsung.
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One of the main arguments playing in Apple's transformation into cards is how much funding it has already distributed among its developers over the years. In December 2009, it was 1,2 billion dollars, but ten years later it was ten times higher, i.e. 12 billion dollars. The App Store was launched on July 10, 2008, when it recorded the first million downloads of applications and games after the first 24 hours of operation.
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Fortnite is to blame for everything, the App Store not so much
Interestingly, Epic Games created the whole case on the game Fortnite and the fact that its creators did not like paying Apple 30% of the amount for the microtransactions made in the game. But the numbers obtained now show that either they did not do their research in Epic Games, or they are simply obsessed with Apple, because their move does not seem justified.
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Apple devices accounted for only a minority share of Fortnite revenue. Playstation and Xbox together accounted for a full 75% of the company's revenue from the game (with Sony also taking the other 30%). Additionally, between March 2018 and July 2020, only 7% of revenue came from the iOS platform. Although of course this may be a high number in financial terms, it is still significantly lower compared to other platforms. So why is Epic Games suing Apple and not Sony or Microsoft? iOS and iPadOS devices aren't the only platform players are running (or have run) the title on either. According to Apple data, up to 95% of users regularly use, or may have used, devices other than iPhones and iPads, typically consoles, to play Fortnite.
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The situation will be even more interesting when Epic games will start to argue with Netflix, which has completely canceled microtransactions in iOS and thus basically pays Apple nothing at all. However, its application is still available in the App store. Using the analogy of a double standard is then directly recommended here.
Epic should have given it to the begginer. Only now, when he made such waves and tried to get around it, he would have a hard time. Neither he nor Netflix would have an application if he had previously pushed the saw and tried to force through that he had the right to different conditions.
But Netflix, HBO, Amazon and others don't offer interactive content, it's a different type of media. So the argument is not entirely valid. Otherwise, they would probably have come with him. Anyway, it will still be interesting and it can turn out in any way. It can easily have two levels of meaning. Epic will be fined for breaching the contract and thus has no right to claim anything, but Apple may be fined something for monopolistic behavior, although in my opinion Apple simply has no monopoly, but of course this is a matter of perspective.