Epic Games' hugely popular multiplayer shooter game, Fortnite, is back in the US Apple App Store after a ban of nearly 5 years. This is considered a big win for the game developer. Epic Games, an American studio backed by China's Tencent, has been embroiled in a legal dispute with Apple since 2020. The company had accused Apple of violating US antitrust laws, as Apple charges a commission of up to 30% on in-app purchases.
Fortnite's return to the US on Apple's iOS platform is big news. The return came after a federal judge ruled on April 30 that Apple had violated a court order requiring it to open the App Store to more competition. The judge also found that Apple did not comply with a previous order and referred the matter to federal prosecutors for a possible criminal contempt investigation. Epic Games CEO Tim Sweeney posted on social media platform X, "We back fam".
Hard-won victory
D.A. Davidson analyst Gil Luria said that this victory was hard-won for Epic Games, and its price was also very high. It may be too late to promote the Fortnite game, which is no longer at its peak. This is another blow for Apple, as its services business depends on charging developers for every transaction.
Michael Ashley Shulman, Chief Investment Officer of Running Point Capital Advisors, said that this will give subscription apps like Spotify and Netflix a chance to get their margins back, and independent studios will be able to earn from their apps without paying additional commission to Apple. This can bring a big change in the iOS economy in the next 12-18 months.
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