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Epic Games has filed a lawsuit [1] and published a Fortnite-themed parody of Apple's "1984" [2] to get some publicity for it.

[1] https://cdn2.unrealengine.com/apple-complaint-734589783.pdf

[2] https://www.youtube.com/watch?v=euiSHuaw6Q4




A PR stunt from Epic and everyone's falling for it.


My favourite is trying to spin two billion dollar companies fighting over percentages as some “big brother” battle. I don’t remember this part of 1984.


I feel like epic has more to show off soon. Apple rejected facebook, microsoft and google in the last 2 weeks when they were trying to get their game centres approved.

https://www.theverge.com/2020/8/6/21357771/apple-cloud-gamin...

https://twitter.com/FacebookGaming/status/129170874980819763...


What a disgrace. I hope consumers realize how bad this is. Imagine if something like that happened in the Desktop space.


wow, how is that not unfair competition?


Is Apple really directly competing with Nvidia’s GeForce Now, Microsoft's xCloud, or Google's Stadia?

All of Apple Arcade's games are just mobile games already available in the App store and reviewed individually. The above options are quite a different proposition and Apple's only grievance is they can't review the PC-style game content they are distributing.

It's probably more like Netflix than Apple Arcade, since they are streaming arbitrary content with subscriptions. But games have always been treated different, so again they are not being uniquely targeted.

(Not that I agree with blocking them)


Does Microsoft allow other stores on the Xbox?

What about Sony and Nintendo?

Does Epic allow people to buy stuff for Fortnite from outside of Fortnite and other companies?


I don’t see how that would work per se, but, they do let you process payments for their in game currency via Xbox, Sony, whatever platform.


> I don’t see how that would work per se

Same way as the Steam Workshop and other mod-able games.


I would say no. However, you can still buy a game on disk and play that. A big argument on the anti-apple side is that there's no way around the app store, which isn't true for most consoles. It will be soon though, with more consoles losing disk drives.


Epic might not be the little guy, but Apple is worth almost $2 Trillion. That is a pretty big brother.


Epic is not a little guy but they certainly are the little guy in this fight.


They're not, really. Both companies have enough money to pay for the best lawyers and keep the case going for as long as it takes. There may be a big valuation difference, but it's a fair fight for that reason. Besides, Epic Games is owned by Tencent, which is worth considerably more than Apple, in terms of market cap.


> Tencent, which is worth considerably more than Apple, in terms of market cap

Sorry? Apple's is hovering around $2 trillion right now, Tencent's is less than trillion is it not? And they only own a minority stake in Epic…


Simply because Epic has the money to fight for what I believe. The lawsuit isn't just about Epic, its about the bigger ramifications.


No, Epic has the money to fight for what they believe, which, like all other modern corporations is getting money, more money, all the money. That's what corporations do. That's all they do.

Some of them are just better at bamboozling schmucks^Wmore naive consumers into becoming their loyal fans and projecting some nobler characteristics onto these corporations, and even identifying with their brand, and becoming an unpaid extension of the corporation's PR department by arguing for them ferociously on online forums.

There is nothing ideological about why Epic is doing this. The merely did their calculations and determined (or at worst made a safe bet) that the money invested in this will cause them to get more money in the long run, regardless of the outcome.


We've always been fighting against Eastasia.


A PR stunt that consumers and small businesses could benefit from. 30% decimates indie studios and makes some apps fiscally nonviable.


Regarding the 30% cut.

It's the large scale clients that are hurt the most by the 30% cut. Old timer indie devs who used to have to manage payment and distribution themselves, like Jeff Vogel, will tell you that Steam's cut is absolutely fair given the value it brings. On PC there are different platforms competing for Steam, which might be a reason why Valve introduced discount tiers for more successful titles. If an outcome of the PR stunt is that Apple decreases its cut, it will likely be a similar arrangement which does not benefit the small businesses.

The issue with the App Store is not the cut, but that it is the only gate to the iOS walled garden.


With Steam you're welcome to sell on steam and get the benefits with the cut and also sell on your own website.

It's not the same.


I don't think Steam's cut is fair. Epic's cut is 12% and provide the damn game engine.


Steam provides loads of functionality and APIs to developers that is simply not on Epic's storefront: the best controller API out there, networking/server API infrastructure, achievements, friends-list, group chat/voice, a storefront to help people find games, an extensive patching and versioning system, everything is cross-platform and most windows games automatically work on windows thanks to Proton.

It's good that Steam has competition! And I wish Epic's was competing on features, but at the moment their platform only competes by having a lower cut and payed exclusives only. The only benefit to users has been that Epic funded certain games that would otherwise might not have happened.


I don't buy that, because most developers would roll each of those features on their own if it meant they could reduce the cut.

I get what you're saying, but I think companies monopolising eyeballs then charging you an entry fee is... Kinda bull. Skimming is fine, but I want their margins to be tiny.


Has it decimated an indie studio? Just curious as to what studios have been decimated.


Technically they’ve been triple-decimating everyone, since to decimate is to kill one tenth of


Thanks, I learned something today!


In Latin, sure, but not in English. It's meant "kill or destroy a large proportion" for centuries. Wait til you hear about "December"


December is actually the tenth month. Jan & Feb were added later. It’s the tenth month that was added, though not the tenth month since the start of the year. The array of calendar months was shifted to make room for two additional months at the beginning of the year.

If I have a son, in December, then I have another son the next year in January, which one is my first son?


> Jan & Feb were added later.

At which point it was no longer the tenth month.


My tenth son will always be my tenth son. Though his birthday falls 10 months after that of my twelfth son (whose birthday came in the second month of the calendar year in which he was born), my tenth son will always have come out of the womb tenth!


> My tenth son will always be my tenth son.

Unless you find you had two other sons you didn't know about.


In that case, he would have never been my tenth son, I would have only thought he was. No matter how hard we try, birth order is one of those things that can’t be changed, even with a revelation. Our mental model of it can be corrected, but the order itself is immutable.


Soon we will be told that a century cannot refer to a 100 year period but only a unit of Roman soldiers. The list of words that no longer mean what they once did is very long and it's lame (and wrong) to "correct" people like this.


A century can only refer to 100 miles ridden by bicycle


You've got two "aCkShuAlly" comments in this thread and they're both wrong.

1. The historical origin of "decimate" does not define the English word. Many words have historical origins that differ with their current definitions.

2. The word "fiscal" does not refer only to "taxes" but also to financial matters in general.


I find it odd that in your first point, you seem to argue that only the most popular, most used dictionary definitions shall count as being “correct” and in your second, you seem to argue just the opposite!

By the way, I never the said the guy was wrong to say fiscally. It was sort of a sloppy usage of the word—in my opinion of course. Which I hope its obvious that this is, seeing as its a comment in a forum!

And I’m certainly not wrong to say that fiscally is to do with taxes. I might have been wrong assuming that he or she was looking for a less ambiguous word. I do tend to assume the best in people, and am often wrong.


> "...only the most popular, most used dictionary definitions shall count..."

No, I just understand that words can have multiple definitions and any of them is perfectly valid to use. You were simply wrong to "correct" them in both cases.

Here's what you did:

> "...a comment in a forum"

I think you meant "a comment on a web site" because a forum means an ancient Roman marketplace...see how stupid this game is?


I never corrected anyone, nor called anyone stupid— like you have.

Both comments were tongue in cheek.

Apparently since more explanation is clearly warranted, I’ll provide it.

In the comment about fiscally, I thought it odd that the person appeared to be concerned with whether indie developers, of which I am one, were going to be contributing to government revenues, since I’ve only ever heard fiscally used in a tax context by professionals. And certainly when I approach my financial strategy, taxes are always a consequence of the goal, and not the goal itself.

In the other comment, I was making a joke, which seems to have gone a bit over your head.

By the way, a “web site” is simply the location where an arachnid...


Nah, I didn't call you stupid. I just meant that those kinds of "technically..." comments are lame and so often wrong. And they create boring threads like the one we're in here :-)

Anyway, I think you get my point and hopefully I wasn't too harsh but sorry if I was. Have a good day/night!


I’ve got an app in the works which would operate on such slim margins that a 30% cut may very well make it non-viable.


Apple must charge some fees so even with a 15% cut there is almost no difference in how much return you get from your app unless you have a high enough sales volume. Indies don't care about the cut because they don't get enough sales in the first place. Indies mostly focus on surviving, not about how to optimize their margin.


You’re kidding right? You think this is going to make a difference in the cut?

The word you’re looking for by the way is “financially”. Fiscally is to do with taxes.


https://www.lexico.com/definition/fiscal

The OED establishes a North American usage of this term as "relating to financial matters", and is not exclusive to taxes.


I like how this was challenged and not "decimate".


> You think this is going to make a difference in the cut?

I’m confused. Is that not the purpose of the lawsuit?


It seems likely the purpose was to cause more people to think about the game Fortnite by virtue of the publicity from this.

It seem like something their lawyers pitched to them as “hey if it works, great, you save millions a year on the App Store percentage, and if it doesn’t, hey, at least you’ll get a whole lot of publicity, which should drive your sales up enough to more than compensate for the losses of being off the stores for a bit.”


Seems like a very expensive stunt if they don't get concessions from apple. That app is literally making millions a week on iOS alone.


Ah it makes sense now.

Epic is the maker of unreal engine, which collects a 5% royalty on licensee game sales over $1M.

So they would stand to profit somewhat more than just from lower fees on Fortnite.


The word usage was correct. [1]

[1] https://www.dictionary.com/browse/fiscally


It literally says “public” treasuries or revenues there, public meaning government. It’s a common misconception apparently!


The second definition says financial matters generally


A common enough misconception to be have been included in a dictionary!


Everyone fell for the Hey! stunt too what do you expect?


I think the difference there is that Basecamp really is a small player compared to Apple, and it's bootstrapped. DHH's parade was a little tiring but he at least had a reasonable 'moral leg' to stand on. Epic Games doesn't even come close to that.


Just thought this and came here to say the same. Well done then Epic.


I like the parody, but it's not really equivalent.

The original Apple parody was to convince consumers to switch from one platform (PC) to a different platform (Mac).

Now, maybe you believe Apple, in the form of iOS, has become Big Brother. Fine, in that case, Epic should provide its own gaming platform.

But Epic isn't trying to destroy Big Brother here. It still wants to run on Big Brother's platform. It just doesn't want to give up any revenue to do so.

Shrug.


Epic stated that they want to create their own separate app store outside of apple, but are unable to because apple does not allow sideloading.

So no, Epic doesn't want to run on Big Brother's platform.


The platform is not merely the App Store. The hardware, the OS, the APIs, they are all part of the platform.


The hardware is not Apple's, it belongs to the owner of the device.

Arguably I think there would be a reasonable anti-trust suit against the OS as well, it's not clear to me why it isn't illegal to utilize their monopoly on their hardware to create a monopoly on the OS running on the device.


> their monopoly on their hardware

This way of viewing things leads to some really silly conclusions. Apple doesn't have a monopoly on the iPhone, the premise is intrinsically absurd. By this argument literally any non-commodity product is a "monopoly" of the company that distributes it.

Moreover, what Apple sells isn't hardware, it's hardware with software on it. That's the product. As far as I know there is no official way to buy either iOS or an iPhone that doesn't have iOS installed. Sometimes companies take an opinionated stance on how they distribute their products, like a firearm manufacturer that only manufactures firearms that have a safety. Framing that sort of thing as an antitrust issue is unreasonable.


Monopoly is indeed not technically the right term, but it's not necessarily a monopoly itself that causes antitrust issues, it's the business practices that are enabled by it. A large player in a market that uses business practices to capture and hold more of that market by erecting barriers of entry are definitely sailing into antitrust waters.

In essence, any practice that helps compete in the market by other ways than increasing value to the consumer is suspect. Incidentally, this is a double edges sword, as this is the interpretation of the antitrust laws that has enabled the rise of so many monopoly-like companies in the last few decades. (e.g. Amazon: we're increasing value to customers because we can offer lower prices if we're larger)


iOS is the platform in the parent's analogy, not the app store.


iPhone is the platform too! All the investments apple make in custom silicon and hardware are a big part of it.


> Epic stated that they want to create their own separate app store outside of apple, but are unable to because apple does not allow sideloading.

That argument would ring less hollow had they done that on the platform that does allow side loading, but they eventually published on the Google Play store.


They do also still allow sideloading on android. Which was actually what their update did on Apple too (you can buy things via apple pay, or directly from us for less money)

Actually they just got banned on android as well, so now they only allow sideloading on android.


> They do also still allow sideloading on android.

My point was, they had the chance and in fact did go completely sideloading on Android, but eventually caved and joined the Play store. Obviously there’s value enough for them to take Google’s 30% cut in the Play store, so why did they do it? Why wasn’t staying sideload only enough, especially when they are arguing they should be able to do it on iOS.

> Which was actually what their update did on Apple too

Sorry, but that’s 100% false. Adding an extra payment option in your app is not the same thing as sideloading and not going through the App Store for publishing and distribution. Apples and Oranges so you speak.


Epic has a platform on PC, I imagine they just see the writing on the wall for phone app stores and held off.


It stopped being Big Brother's platform when they sold their first phone to a consumer.


Except it didn't. People wish that this was true, for lots of freedom related reasons. But it's not. The proof is pretty clear in the situation we're seeing now; if you actually controlled your iPhone, you and Epic could decide not to involve Apple. You cannot do that.


Well how do you define how much control is enough? You can still download Fortnite and put it on your device, just through the app store.

If every Tom, Dick and Harry could setup an app store for the iPhone, this doesn't necessarily give me more control. It might mean I am then forced to use the Epic platform for all Epic related products. Now how do I know that Epic have appropriately vetted their application? What if they start producing applications for the iPhone which are terrible?

This is a big problem on the Google store whereby plenty of the apps are rubbish.


> You can still download Fortnite

I invite you to read even the headline of the article this thread is about.


The lawsuit literally references 1984 and Orwell, and the ad... Hilarious!


Wow looks like they came prepared.


Epic!


They will lose as the TOS clearly indicates the rules and Epic agreed to them. This is basic contract law. Apple has a massive team of experienced lawyers.


TOS can't violate laws though. A contract that is in violation of the law isn't enforceable. Epic is looking for a judgement to make it illegal.


Expanding on this.

The idea that a large platform like iOS can only have apps loaded through a market place controlled by the hardware manufactured is clearly in violation of the spirit of anti-trust laws.

However there's no legal precedent on this because no one with deep enough pockets to fight Apple has been angry enough to do it yet.

Meaning this could be great news for everyone if this goes to court and Apple loses as they should.


I don't think that's true. Almost no one is complaining about Microsoft/Sony/Nintendo's "monopolies" on what software runs on their video game consoles.

The big differentiator is that phones have become the most frequently used personal computing device for many people, and we expect the freedom to use it how we want.


> Almost no one is complaining about Microsoft/Sony/Nintendo's "monopolies" on what software runs on their video game consoles.

We should! I would love to run Steam on my PS4.

But Sony already invests in some studios to develop games for their platform.


Back in the day lawsuits were won by unauthorized publishers wanting to sell games for e.g. the NES.


Which specific lawsuits are you referring to?


It seems I had swapped Tengen and Accolade in my memory. I am thinking of Sega v. Accolade.

The Ninth Circuit reversed the district court's order and ruled that Accolade's use of reverse engineering to publish Genesis titles was protected under fair use, and that its alleged violation of Sega trademarks was the fault of Sega.

https://en.m.wikipedia.org/wiki/Sega_v._Accolade


Both of those cases were about whether reverse engineering violates copyright law, they're not really relevant to the antitrust claims Epic is alleging in their lawsuits.


> and we expect the freedom to use it how we want

I suspect Apple will argue the oppose. The "freedom" argument has been common in the perennial "iOS v Android" discussions, from which I'd note that iOS appeals to many because it's locked down; it's easy to use and it's not junk. The Play Store was a mess last I remember it. Some consider that freedom, others dislike it. It's a brand perception thing, and I wouldn't be surprised if Apple makes the same point, that an open platform would harm their brand reputation.


With the consoles it was about mod chips and people did complain and it did go to court in various countries around the world.


Relation between console makers and game studio is too different to directly trigger the same issues (Atlus wouldn’t sue Sony For instance).

But the situation being almost the same, a ruling in one would trigger a tidal wave in the other.

There was a fun moment in last year’s vergecast interview with a lawyer on the App store issue, also related to Epic I think. The case of console stores was brought to the conversation, and the lawyer bailed out of it pretty fast with a “there might be similarities but we need to look deeper before saying anything, let’s put that aside for now” kind of answer.


> Almost no one is complaining about Microsoft/Sony/Nintendo's "monopolies" on what software runs on their video game consoles.

In general, those console platform owners have been much friendlier to publishers than Apple (and maybe Google) since game publishers generally have much more negotiation power against console platform holders. Nintendo's primary weak point has been lack of 3rd-party games. MS and Sony compete with each other to gain more exclusive offers and they even provide substantial subsidiary to developers. If you want to enforce your own arbitrary rule at the cost of losing CoD, I don't think it's going to be a good trade-off. Creative contents are usually not replaceable and publishers don't really have incentives to attack game platform holders in this dynamic.

The same thing doesn't really apply to App stores since 1. the upfront cost for buying a phone compared to usual apps is much higher (>100x), especially for the premium phone comparable to iPhone, while it's <10x for usual consoles 2. Apple (and Google) also has their own alternative services for many popular apps so hurting competitors by setting arbitrary rules is actually beneficial for them. In short, having a monopolistic status itself is not problematic but exercising it is.


So I'm trying to understand your point here. If a console maker charges 10% of revenue it's OK, but if Apple charges 30% it's illegal? And a court should decide the percentage allowed?

I'm no fan of Apple -- they engage in massive tax avoidance, labor arbitrage, and are just too big for my taste. Same criticism of Google. And Facebook. But you don't go from emotion --> must be illegal. There has to be some reasonable standard you can apply that will make sense across time and across companies/industries. What is that standard?

Perhaps congress should legislate the share of revenue that a platform is allowed to take. Not being ironic; if we are going to regulate this, let's do it with lawmakers instead of courts.


> If a console maker charges 10% of revenue it's OK, but if Apple charges 30% it's illegal?

There no such clear cut on what is acceptable or not. In fact, typically console makers charges much more than 10% but not much companies are complaining about that because it's more negotiable compared to the app store situation. The court may decide how to remedy this, but the decision won't be made simply based on the app store cut but take care of other contexts as well.

The real issue is, Apple has designed their product in order to retain complete control on potential customer facing interactions and is blatantly exercising their market power. The game platforms are usually not in a position to do so. Android might be slightly better but IMO this also needs to be addressed.

> There has to be some reasonable standard you can apply that will make sense across time and across companies/industries. What is that standard?

The existing antitrust framework is already capable of handling this app store situation; even assuming Apple is not a dominant player (which is a very optimistic assumption in favor of Apple; app store is likely a monopoly based on hypothetical monopolist test), tying iPhone, App Store and its payment module already brings significant legal risks. Though it still needs to evolve to address other situations such as Amazon or Google.


> The real issue is, Apple has designed their product in order to retain complete control

How has apple done this in a fundamentally different way from sony? I'm not seeing the difference here, which means I'm not seeing what you consider to be the real issue. Care to elaborate?

> The existing antitrust framework is already capable of handling this app store situation;

I think you are going to be dissapointed. Maybe EU antitrust would adopt more of a philosophical criteria for fairness, but US antitrust is unlikely to side with Epic here.


> US antitrust is unlikely to side with Epic here.

Having done a little digging into the relevant case law I agree with your assessment, US courts have generally been very reluctant to find antitrust violations in aftermarket scenarios where the customer was fully aware of aftermarket limitations before purchasing a product, had the opportunity to buy an alternative product without such limitations, and proceeded to buy the original product anyway.

I think the most likely outcome is Epic's case is dismissed based on failure to establish that "iOS app distribution" is a separate and relevant market for antitrust purposes.


I think everyone is just assuming that Epic will win. I don't think that's the most likely scenario. The US is a very different legal and social environment than it was 30 years ago. More likely it's going to set a precedent that device makers can do exactly the things that Apple is doing, and more than that, they'll become the norm and you can kiss any "open" hardware platforms goodbye.


While I agree with Epic's aim with this lawsuit, one should note that this has no basis in anything except wishes:

> The idea that a large platform like iOS can only have apps loaded through a market place controlled by the hardware manufactured is clearly in violation of the spirit of anti-trust laws.


Yet Xbox, Ninetendo, PlayStation..


It may go down that way or not. It is unwise to predict the outcomes of lawsuits of this magnitude. Epic is no small insignificant company with a public defender. Also this suit is probably more of a signal that they mean to have a fight. Epic is not without significant extrajudicial leverage in this situation.


Epic also has lawyers. This bit is just a quick chess opening, the real battle is a few moves down the line from here.


I'm guessing the crux of the argument will be that the ToS are illegal in this respect?


It is likely extremely difficult to win such a suit based on challenging the terms of an agreement that you agreed to repeatedly. Every single change to the TOS for a developer account requires acceptance. I doubt there is any part of this agreement that Apple did not write with this exact circumstance in mind. No matter what Epic challenges based on this argument in the end they will give in and look like fools. Maybe if they are lucky Apple will lower the % by a little. This is not cutting edge law here.


I'm not sure why you feel qualified to comment on the legal aspects on this case based on just a primitive understanding of offer and acceptance (which isn't the point of contention here). You can't have an enforceable contractual term that is illegal, even if both parties have agreed to it. The legal issue is whether Apple's ToS contravenes some aspect of competition law.


IANAL but my understanding of antitrust cases is that voluntary consent to a EULA is indeed a relevant factor in determining market power for antitrust claims. See the discussion in Blizzard Entertainment Inc. v. Ceiling Fan Software LLC:

> Blizzard raises this argument in its motion, contending that Defendants cannot establish antitrust claims based on its users' voluntary consent to the EULA and TOU. (Mot. Br. 22–23.) Although Blizzard does not argue this point in the market power analysis, the Court finds that this discussion is applicable to whether the market power requirement is established. Blizzard cites Newcal, Queen City Pizza, Inc. v. Domino's Pizza, Inc., 124 F.3d 430, 441 (3d Cir.1997), and Apple Inc. v. Psystar Corp., 586 F.Supp.2d 1190, 1201 (N.D.Cal.2008), to show that Defendants cannot base its claims on the aftermarket restrictions. ( See Opp'n Br. 17.) These cases explain that the law prohibits an antitrust claimant from asserting an antitrust claim “resting on market power that arises solely from contractual rights that customers knowingly and voluntarily gave to the defendant” when they purchased the initial tying product.

https://casetext.com/case/blizzard-entmt-inc-v-ceiling-fan-s...


Maybe he's both a programmer and practices contract law on the side


If I give you a contract stating that you allow me to shoot you in the head, you sign it, and I pull the trigger, I still go to prison for murder. Whether or not you "agreed" to something is irrelevant if the contract cannot be legally enforced, which is what Epic is hoping to prove with this lawsuit.


However, the contract is the only thing which allows Epic to publish in the store. So it is not enough for them to simply get terms they don't like to be declared illegal, they still would have to get the terms they like into the contract.

If Apple changed their stance to "all services and digital goods associated with your app must included in the original purchase price", that might meet the court's requirements for legality but it would leave Epic without their current revenue stream.


I'm not a lawyer but I would assume TOSes are basically irrelevant in antitrust cases due to the nature of the case.


Will probably bear much less weight than usual, since those TOS themselves are effectively the subject of the suit.




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