Apple is getting it’s C-suite ready for a court case after a suit was made by Epic. The two leading giants are fighting over Fortune – a game produced by Epic. Apple was quick to say Epic went against their terms and conditions on the App Store and that deprived them of some revenue. On the other hand, Epic argues it’s a free world and any provider should use the payment gateway of their choice.
Epic was pushed to open a case after their Fortnite game was pulled down from the App Store and Google store. The Apple trial is scheduled for May 3. Apple is getting its leadership, including the CEO, Tim Cook ready for the suit. On the other hand, Epic has summoned the concerned individuals and has started conversations revolving around its business model.
Conflict of Revenue
Apple is getting ready to summon its head of software, Mr. C. Federighi, and other team players responsible for fighting fraud in the organization. The battle here is who takes what percentage of the income! Epic gave buyers a secret code through which they could check out when purchasing the game. This bypassed Apple’s payment gateway and as a result, caused revenue to deprive to the leading tech giant.
For that reason, they took action against Epic by pulling down the game from the App Store. Google did the same and that led Epic to react with legal action. For that reason, both Apple and Google have cases to answer. Apple is getting its management involved as it prepares for the suit hoping it will turn out victorious.
Using Epic’s purchase code, the buyer would get a discount. The reason Epic did this was because of Apple’s alleged greed. According to reports by Epic’s management, Apple would bank 30% of sales of games on its store. This was on the high end and that is the reason Epic came about with an alternative.
This case might be a hard one to decide. Both parties feel entitled. Apple getting 30% of revenues generated by sales of products on their platform shows how entitled they are. Epic on the other side sees this as a monopoly. Records have it that an influential person in the organization claims Apple is taking advantage of the influence. This is a strong argument considering Epic put in all the work in development only to lose 30% of the revenue to Apple. The leading game maker believes Apple has not done enough to justify the 30% share.
Providing a platform to Epic to make sales is not enough. However, Epic knows well App store has terms and conditions. Before they put their game on the platform, they must have agreed to the terms and conditions. Epic should have thought about the 30% before agreeing to the terms. Going against these terms and conditions may work against them in the court of law. It is a breach of contract however justified they are to argue apple is taking advantage of their monopoly.
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