Epic vs Apple: Objectives of the May 3 Trial

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How Did the Story Begin?

On Monday, May 3rd, US time, Apple and Epic Games will officially go to court after a year of intense dispute over payment issues on the App Store, expanding into an antitrust lawsuit. This trial will significantly impact how Apple operates the App Store.

How Did the Story Begin?

The saga began in August 2020, when Epic decided to offer discounts to Fortnite players who purchased in-game items through Epic's own payment gateway, instead of using the App Store's payment mechanism. This violated Apple's regulations, leading to Fortnite's removal from the App Store.

Immediately, Epic filed a lawsuit against Apple, alleging that Apple had employed various unfair and monopolistic practices to restrict the distribution of apps to mobile device users, as well as to handle payments for digital content purchased on iOS apps. Apple imposed unreasonable, unlawful restrictions to monopolize both markets and prevent developers from reaching 1 billion users unless they went through the App Store. Epic also claimed that the App Store's 30% commission was 'oppressive.'

Apple, on the other hand, argued that Epic had used the App Store for over 10 years and benefited from the App Store's ecosystem, including development tools, testing, and distribution systems provided to all developers. Epic voluntarily agreed to the App Store's terms and conditions, and Apple was pleased to see their success on the App Store. Apple believed that Epic's creation of its own payment system for iOS apps was unfair.

After Fortnite on Android introduced a payment tool not through the Play Store, Google also removed Fortnite from the Play Store for policy violations, similar to Apple's actions. Fortnite then had to provide a separate installation file for Android users.

What does Epic want and what does Apple want?

Epic Games wants to be able to sell in-game items in Fortnite on iOS without paying Apple a 30% commission. Additionally, Epic wants to have its own app store for the Apple ecosystem. If Epic wins the lawsuit (and wins all subsequent appeals), the App Store will be declared a monopoly and Apple may have to reduce its commission fees, or open up iOS to allow apps to be installed through other stores. As for Apple, they want to prove that the App Store is essential and an integral part of the overall iOS experience. Specifically, without the thorough app review process and control over which apps users are allowed to download, the iPhone and iPad would be much worse devices than they are today. If Apple wins the lawsuit, it will be very difficult for Epic or other companies to make similar allegations.

How will the trial proceed?

Each side will have 45 minutes to present their views and arguments. Judge Yvonne Gonzalez Rogers of the Northern California district court is presiding over this case and will also oversee the trial.

Some people will attend the trial in person, while some witnesses will speak via Zoom.

The biggest question in this lawsuit is not about the app store or Fortnite, but about what constitutes 'monopoly'. Answering this question will determine what both sides are aiming for.

On Epic's side, the following characters will appear:

Tim Sweeney, CEO, co-founder
Mark Rein, co-founder, vice president of business development
Daniel Vogel, CEO
Steve Alisson, manager of Epic Games Store
Andrew Grant, senior engineer
Matthew Weissinger, vice president of marketing
Thomas Ko, senior director of strategic and online business operations

On Apple's side, the following individuals will be present:

Tim Cook, CEO
Eddy Cue, senior vice president of software and Internet services
Craig Federighi, senior vice president of software engineering
Phill Schiller, Apple Fellow, former head of global marketing
Matt Fischer, vice president of the App Store
Eric Gray, director of commerce and payments
Trystan Kosmynka, senior director of marketing
Scott Forstall, former senior vice president of iOS software
Phillipe Shoemaker, director of App Store review process

The third-party witnesses will include:

Lori Wright, president of Xbox business, Microsoft
Benjamin Simon, founder, CEO of Yoga Buddha Co
Aashish Patel, director of product development at NVIDIA
Adrian Ong, senior vice president of operations at Match Group
Shelley Gould, co-founder of SmartStops

Source: 9to5Mac

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Frequently Asked Questions

What are the main allegations Epic Games has against Apple in their lawsuit?

Epic Games alleges that Apple has engaged in unfair and monopolistic practices that restrict app distribution and payment processing on iOS. They claim Apple's 30% commission on in-app purchases is oppressive and that the App Store's policies prevent developers from reaching a broader audience.

How did the dispute between Apple and Epic Games begin?

The dispute started in August 2020 when Epic offered discounts for in-game purchases through its own payment system, violating Apple's App Store guidelines. This led to Fortnite's removal from the App Store and prompted Epic to file a lawsuit against Apple.

What does Epic Games hope to achieve from this court case?

Epic Games aims to eliminate Apple's 30% commission on in-app purchases and to establish its own app store for the Apple ecosystem. If successful, it could significantly change how apps are distributed and monetized on iOS.

What is Apple's primary defense against Epic Games' accusations?

Apple defends itself by arguing that the App Store is vital for iOS's functionality and security. They contend that their app review process ensures a better user experience and that Epic has benefited from the App Store for over a decade.

Who are the key figures involved in the Apple vs. Epic Games trial?

Key figures include Tim Sweeney and Mark Rein from Epic Games, and Tim Cook and Eddy Cue from Apple. The trial will also feature various witnesses from companies like Microsoft and NVIDIA, providing insights into the app ecosystem.