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Epic showdown: Fortnite maker sues Apple and Google app stores over in-game currency payments

  • When Epic Games introduced a direct payment option in Fortnite, it bypassed Apple and Google stores, which usually take a 30 per cent cut
  • They removed Fortnite from their app stores, and now the matter is in the courts

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Epic Games, the maker of Fortnite, is taking on Google and Apple over in-game payment methods. Photo: Reuters/Brendan McDermid
USA TODAY

The Fortnite competition is going way beyond the game. First, Epic Games, the publisher of the popular online video game, introduced a direct payment option for mobile players – sidestepping the Apple App store and Google Play store payment methods, which nets each of those tech giants a cut of the revenue.

Apple and Google, subsequently, pulled the mobile game from their stores. Epic Games’ answer? Suits filed against both companies describing each one’s app store as anticompetitive and monopolistic.

How the confrontation plays out has massive implications for how – and who – consumers pay for apps such as games and streaming entertainment.

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“This is a big deal,” says Michael Pachter, an analyst with Wedbush Securities, in a note to investors. “Epic is challenging Apple’s [and Google’s] pricing within their stores and offering an alternative for users to get the same thing at a lower price.”

A screen grab from Fortnite. Photo: Reuters/Brendan McDermid
A screen grab from Fortnite. Photo: Reuters/Brendan McDermid

What is the argument?

Founded in 1991, Epic Games is well-known as the publisher of game series such as Unreal, Gears of War and Infinity Blade, as well as the Unreal Engine, which powers countless video games from Batman Arkham Asylum to Sea of Thieves.

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