'Fortnite' Battle Royale: Epic Games vs. Apple And Google

• Published date: 01 October 2020
• Law Firm: Jeffer Mangels Butler & Mitchell LLP
• Author: Mr Mark Riera

Epic Games v. Apple and Google: Does success require an alleged monopolist to do business with a competitor that wants to sell mobile apps to IOS and Android users outside the iTunes and Google Play Stores? The Northern District of California provisionally said no, denying a temporary restraining order to require Apple to restore "Fortnite" to the iTunes store.

On Aug. 18, Epic Games sued Apple and Google in the Northern District alleging federal antitrust claims and related California state law claims because Apple and Google will not let Epic distribute games and charge users directly for in-app purchases. Epic Games, Inc. v. Apple, Inc., 4:20-cv05640- YGR, and Epic Games, Inc. v. Google LLC, et al., 5:20-cv-05671-NC. Epic alleges that Apple and Google charge developers 30% of inapp sales and Epic proposes to reduce that amount by 20%.

The story goes that the vast majority of mobile devices use the Android operating system that Google owns and licenses to OEM device manufacturers. Although Apple's mobile operating system (IOS) is limited to Apple iPhones and iPads, there are more than 1.5 billion active IOS devices worldwide. Epic Games publishes "Fortnite" that has more than 350 million players "and has become a global cultural phenomenon." Tencent Holdings, the world's largest video game company, reports that it owns more than 10% of Epic Games. Epic Games distributes "Fortnite" directly to PC and Apple computer gamers, and through Google to Android mobile users. Until recently, Epic distributed "Fortnite" through Apple to IOS mobile users. Apple's Developer Agreement prohibits developers from distributing apps to IOS users or selling in-app enhancements outside Apple's app store. On Aug. 13, Epic Games did just...