Apple's 'App Toll' Conflict Explodes... Developer Account Suspension Notice Sent to Epic Games
[Asia Economy Reporter Seulgina Jo] "Apple is attacking Epic Games' entire business even in unrelated fields." The conflict over 'app fees' between Epic Games, the maker of the popular game 'Fortnite (FORTNITE)', and Apple is intensifying.
On the 18th (local time), Epic Games revealed related documents through its official Twitter account, stating, "After Apple removed Fortnite from the App Store, they notified us that on August 28th, they will terminate all our developer accounts and block Epic Games from iOS and Mac development tools." Epic Games also disclosed the status of their injunction request, saying, "We are asking the court to stop this retaliation."
This conflict was triggered when Epic Games opposed Apple's App Store policy, which takes a hefty 30% app fee, by building its own in-app purchase (IAP) feature that allows item purchases without going through the App Store, offering users a 20% discount when buying Fortnite items directly.
Accordingly, on the 13th, Apple announced its plan to remove Epic Games, the maker of Fortnite, from the App Store for violating the App Store's payment guidelines. Epic Games, in turn, filed lawsuits against the app market giants Apple and Google, escalating the so-called '30% app toll' controversy into a legal battle.
If Epic Games is blocked from accessing Apple's developer program, the impact will be inevitable. The economic media CNBC evaluated this as "a significant stepwise escalation in an all-or-nothing fight."
Access to the developer program is essential to release apps on Apple's platform. Besides Fortnite, the game that triggered the conflict, developing new iOS games and updates will also become difficult. Mac application notarization will also be blocked. Epic Games claimed, "Apple is attacking Epic Games' entire business even in unrelated fields."
On the other hand, Apple's notice clearly states its position of holding Epic Games responsible with the phrase 'you must cure your breaches.' Apple said, "We are making every effort to work with Epic Games to 'cure the violations' and plan to allow Fortnite to return to the App Store."
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Major foreign media reported that "games are the biggest source of revenue for the Apple App Store," and "Epic Games' actions must be a thorn in Apple's side." Fortnite by Epic Games recorded over 2 million downloads last month alone. It ranks in the top 10 iPhone apps by revenue. Monthly sales through item sales are estimated to reach $34 million.
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