Apple, Epic in heated US court clash over application market
Fortnite maker Epic Games and Apple clashed in court Monday at the opening of a blockbuster trial on the iPhone maker's App Store with potentially big implications for the world of mobile tech, trading barbs over alleged monopolistic actions and what's best for consumers.
Epic legal professional Katherine Forrest started out the case, accusing Apple of turning its online marketplace right into a monopoly "walled garden" that lures in developers and users and then squeezes money out of these.
Apple essentially planted a "flower in the walled garden (that) was converted into a Venus fly trap," the attorney said during opening statements in California federal court, claiming the technology titan gets profits of just as much as 78 percent from apps.
"The data will show unambiguously that Apple is a good monopoly," she claimed.
Apple attorney Karen Dunn fired rear, telling the judge that Epic's suit is part of a "self-proclaimed war against mobile platform fees" that defies regulations and the facts.
Apple is no more a monopoly than is a grocery market that sells a wide selection of goods, competing with other shops, Dunn maintained, pointing out that people can play Epic games on platforms including consoles, computers and smartphones created by Apple rivals.
"Apple didn't create a good secure and integrated ecosystem to keep people out, it did that so that it could invite developers in -- without compromising the privacy, reliability and quality consumers wanted," Dunn said.
If Epic prevails, Dunn said, "The effect for consumers and developers will be: Less security. Less privacy. Less reliability. Decrease quality. Significantly less choice. All the things the antitrust laws look for to protect."
Epic, maker of the favorite "battle royal" game Fortnite, is looking to break the iPhone maker's grip about its App Store, in the latest assault about Apple's tightly managed empire.
Epic's leader Tim Sweeney, the first witness, said Apple's actions forced his company to either accept unfavorable terms or lose the massive base of iPhone users.
"As Fortnite scales beyond gaming... it is vital to include the multiple billion iPhone users," Sweeney stated in his testimony.
Asked why he waited until now to file suit, he said, "It required me a very long time to come quickly to the realization of all negative impacts of Apple policies."
The case being heard by District Court Judge Yvonne Gonzalez Rogers includes Apple feeling pressure from a variety of application makers over its control of the App Store, which critics say represents monopolistic behavior.
The two organizations are debating whether Apple has the to set ground rules, control payment systems and kick out software from its marketplace that fail to comply. Also at stake is certainly Apple's slice of earnings from iPhone apps of up to 30 percent.
A key factor of Apple's business design is at stake in the case, said Tejas Narechania, a University of California law professor.
"It's going to reveal a lot about how precisely we structure industries and the technology industry in the years ahead," he said.
"Which is certainly how tightly can companies like Apple and Amazon and Google, how tightly may they vertically integrate their products?"
Analyst Dan Ives at Wedbush Securities called the circumstance a good "Game of Thrones courtroom battle," with Epic seeking to bypass the software platforms of both Apple and Google "even though trying to gain support from additional developers/app makers in a good 'groundswell movement'" against Apple.
But Ives said Apple includes a strong defense.
"Apple features successfully defended its App Store moat over and over, with this time around being no different inside our opinion," Ives said found in a research note.
Epic, which is seeking to go back to the App Store without being forced to use Apple's payment scheme, isn't alone found in its criticism.
EUROPE on Friday formally accused Apple of unfairly squeezing out music streaming rivals predicated on a complaint brought by Sweden-based Spotify and others, which claim the California group sets rules that favor its Apple Music.
A good recently formed Coalition for App Fairness, which includes both Spotify and Epic, have needed Apple to start its marketplace, claiming its commission is a "tax" on rivals.
Apple booted Fortnite from its online mobile marketplace last year after Epic released a great update that dodged earnings sharing with the iPhone maker.
Apple will not allow users of its popular devices to download apps from anywhere but its App Store, and developers have to use Apple's payment program, which took its cut.
As a result of legal row, Fortnite fans using iPhones or additional Apple devices no longer possess access to the most recent game updates.
Source: japantoday.com
