It'll be fascinating to see which way the trial develops when it begins on May 3 in Oakland, California - but either way, one big company is likely to be unhappy with the result. Third-party analytics companies suggest 98% of developers would qualify for this reduced rate. On Epic’s side, it appears that Epic founder and CEO Tim Sweeney will also be appearing in person.Īpple recently made changes to the App Store which meant smaller developers earning less that $1 million would be paying a reduced cut of 15% to the firm. For Apple and potentially every company that operates a platform-specific store, like Sony, Microsoft, etc, this case could have serious implications. CNBC reports that top executives, including Tim Cook, are likely to testify. One thing is for sure: Apple is taking this case incredibly seriously. Epic also operates an app store itself, where it takes a 12% cut of developer’s profits.Įxtrapolating from that argument, one could also arrive at the conclusion that Epic thinks it’s okay for a retailer to stock iPhones but for Apple to send someone to stand in front of the cash register to collect the money directly - thus bypassing the shop, apart from to make use of its store front and customer base. In October, according to The Verge, Epic made what some would consider to be a fairly contentious statement that Apple ”has no rights to the fruits of Epic’s labor.” This seems like a preposterous position for a company such as Epic to take, while arguing it should be allowed to take advantage of the fruits of Apple’s labor - namely a very large base of potential customers. The documents also suggest that Epic says the size of Apple’s cut has caused price increases for apps, thus disadvantaging consumers. Today, May 3, 2021, marked the first day of the three-week trial between Epic Games and Apple. These include collaborations that were rumored around the time they were supposed to release. It will also claim that developing a web app isn’t a suitable replacement for a downloadable app, citing cache size limitations and direct access to Apple hardware as reasons this isn’t a practical solution for game developers. During the first day of the Epic Games vs Apple trial, a slew of scrapped/delayed crossovers was leaked. It also seems to be arguing that there is no way to reach Apple’s users without the app store, and those users account for roughly half of the total smartphone market. Apple: What Epic will argueĮpic, on the other hand, will argue that Apple has a monopoly in the iOS app distribution market and that its profit margins are exceptionally high. What's more, it will highlight the benefit consumers have enjoyed from the ongoing development of iOS and the App Store and that businesses have also seen a massive boost to profits from app sales. The Cupertino tech giant will also claim that it faces competition from other phone manufacturers as well as games consoles.
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