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Epic Games Battles Apple and Google over Fortnite

After big technology firms went for congress summoning over an antitrust case, two of NASDAQ-100’s alpha yet again face concerns on alleged monopolistic behaviors.

Epic Games, an American video games and software developer said that Apple and Google unreasonably charge 30% to give platforms access on their App Store and Play Store.

Its homegrown online video game Fortnite was kicked off from Apple and Google on Thursday. This was after it offered direct payment options for users.

Modern technology paved the way for the development of mobile games. But over the years, creators made way to generate more revenues through in-app purchases.

Such is the case for the majority of the globally-acclaimed online games in the market, including Fortnite. The app download is free, but Epic Games makes money from in-game purchases.

Players buy in-game currency called V-Bucks to purchase new specs for the user’s character such as outfits, weapons, and skins.

The new payment mechanism surrounded the technology news driving players excited. When a gamer decides to purchase a thousand V-Bucks, two options are available: $9.99 from App Store while only $7.99 from Epic.

The dichotomous payment method led to its dismissal from two of the world’s biggest distribution platforms.

Android gamers can still download the app through Epic Games Store, although at a heightened security risk. Similarly, iOS users can re-download Fortnite but new updates and seasons will not be available.

 

Fortnite Fights Back Against the Giant

Epic Games on Thursday finally filed a charge against Apple accusing the latter of anti-competitive practices. It urged the giant to practice fair competition.

According to Epic’s statement, Apple forces developers to agree on its “unlawful” Developer Agreement, where App Store Guidelines make it difficult for the majority of developers to reach iOS users.

In conjunction to this, Microsoft called out its co-NASDAQ leader last week after the denial of blocking the entry of its xCloud game streaming on iOS. It said that Apple treats gaming apps strictly more than other interactive entertainment platforms.

In response to Epic, Apple said that the developer violated their guidelines which are applied for the observance of all developers who sells digital goods or services. This is to ensure to make the App Store safe for users.

Google responded in the same tone. The firm said that the move aspires to maintain its open ecosystem for the enjoyment of all.

For the record, Epic Games pulled out Fortnite from Google’s Play Store and began distributing it directly. But in April 2020, the game made a comeback with an accusation that Google makes third-party downloading difficult caused by security pop-outs which scare users.

Upon its release in 2017, Fornite users surged 125 million. Today, it boasts more than 350 million followers and has become a global phenomenon. There were 250 downloads of the game on iOS alone.

Epic Games is valued at $17.3 billion last week after a big funding deal worth $1.78 billion from primary capital and secondary purchases. This includes a $250 million investment from Sony.

In total, the game already generated $4.2 billion over the 2018 to 2019 period, but its exit from the two platforms will result in serious dent to its current performance.



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