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2021-05-03

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What's at stake in the Epic vs. Apple trial?

A high-profile legal battle set to begin today between Apple(NASDAQ:AAPL)andFortnitecreator Epic Gam

What's at stake in the Epic vs. Apple trial?

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A verdict could see developers no longer having to do app \"checkouts\" with Apple, or having to pay a 30% \"app tax\" to the tech giant, which would dent its fastest growing Services business.</p><p><i>Backdrop:</i>&nbsp;The legal fight started last year when Epic created its own direct payment method within<i>Fortnite</i>, circumventing fees paid for App Store purchases. Apple then issued a warning to Epic regarding the workaround, but the latter refused to remove it, and Apple kicked the developer off its platform. A lawsuit then emerged, which is finally seeing its day in court. Executives testifying at the trial will include Epic CEO Tim Sweeney and Apple CEO Tim Cook, though neither side wanted a jury trial, leaving the decision to U.S. District Judge Yvonne Gonzalez Rogers.</p><p><b>Epic's argument:</b>&nbsp;With over 1B users across the globe, the iPhone market - is itself a market. Meaning, developers can only reach this massive demographic via the App Store. Apple is essentially \"forcing\" them to use its mechanism (to have the app downloaded) and its app payment system (to have people pay for purchases).</p><p><b>Apple's defense:</b>&nbsp;The company feels it built an ecosystem where app developers of all sizes formed multi-million or even billion dollar businesses over the last decade. Anyone that doesn't want to pay the 30% commission is asking for a free ride in a market it created, updates and maintains via new features and security details.</p><p>Apple seems to have the edge in terms of legal precedent, but the tech giant ended the week with an antitrust warning from the EU, which said Apple \"abused its dominant position for the distribution of music streaming apps through its App Store.\" That decision, which followed a complaint from Spotify, was preliminary and Apple will have time to respond. But if the finding holds in the final decision, Apple could face a fine of up to 10% of its annual revenue and be forcedto make changes to its App Store business model.</p><p>Apple&nbsp;rose&nbsp;slightly&nbsp;in&nbsp;premarket&nbsp;trading.</p><p><img src=\"https://static.tigerbbs.com/5e20aef2d05c22c8f28719757078a70f\" tg-width=\"628\" tg-height=\"484\" referrerpolicy=\"no-referrer\"></p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What's at stake in the Epic vs. Apple trial?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat's at stake in the Epic vs. Apple trial?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-03 18:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/3689029-whats-at-stake-in-the-epic-vs-apple-trial><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>A high-profile legal battle set to begin today between Apple(NASDAQ:AAPL)andFortnitecreator Epic Games will determine how a\"market should be classified in the digital age.\" It's one of the biggest ...</p>\n\n<a href=\"https://seekingalpha.com/news/3689029-whats-at-stake-in-the-epic-vs-apple-trial\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://seekingalpha.com/news/3689029-whats-at-stake-in-the-epic-vs-apple-trial","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1196761126","content_text":"A high-profile legal battle set to begin today between Apple(NASDAQ:AAPL)andFortnitecreator Epic Games will determine how a\"market should be classified in the digital age.\" It's one of the biggest cases brought against Apple since the company was founded in 1976 and the consequences could be huge. A verdict could see developers no longer having to do app \"checkouts\" with Apple, or having to pay a 30% \"app tax\" to the tech giant, which would dent its fastest growing Services business.Backdrop: The legal fight started last year when Epic created its own direct payment method withinFortnite, circumventing fees paid for App Store purchases. Apple then issued a warning to Epic regarding the workaround, but the latter refused to remove it, and Apple kicked the developer off its platform. A lawsuit then emerged, which is finally seeing its day in court. Executives testifying at the trial will include Epic CEO Tim Sweeney and Apple CEO Tim Cook, though neither side wanted a jury trial, leaving the decision to U.S. District Judge Yvonne Gonzalez Rogers.Epic's argument: With over 1B users across the globe, the iPhone market - is itself a market. Meaning, developers can only reach this massive demographic via the App Store. 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What's at stake in the Epic vs. Apple trial?

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