In 2020, Epic Games, the developers of Fortnite and the Unreal Engine that powers many modern video games, initiated a battle against Apple and Google’s mobile app stores. Epic aimed to challenge the steep revenue percentages collected by Apple and Google on transactions made on their platforms. As a successful Fortnite creator, Epic took offense to this practice.
Over the course of four years, Epic has secured some victories and faced some defeats in this ongoing conflict. However, they have managed to compel both companies to make unexpected concessions. The combined value of these app stores was reported to be $124 billion in 2023, according to Sensor Tower, signifying significant repercussions on the mobile game development industry. Here are three key insights for developers navigating the aftermath.
1. Introduction of Alternate Payment Methods on iOS
One consequence of Epic’s disputes with Apple was the push for apps on iOS to offer alternative payment methods that bypass Apple’s standard 30% commission. While Apple did allow developers to link external payment methods, they required a 27% cut through an external link. Though not perfect, this move chips away at Apple’s revenue control, setting a potential precedent for future changes.
2. Opening Alternative Storefronts on Android and iOS
Following a more recent court ruling in Epic’s favor, Google was mandated to allow alternate stores on Android. This decision enabled the Epic Game Store to operate on both platforms, granting developers the freedom to sell directly to customers without relying on the official stores. This liberation allows developers to launch their own stores independently of store regulations.
3. Anti-Monopoly Vulnerabilities for Apple and Epic
The significant outcome of this conflict highlights the power of persistent challenges against established norms. While Epic’s battle primarily benefited their own interests, it underscores the potential for change within these app stores to benefit developers. This shift impacts both conglomerate decisions and individual developers creating games for mobile platforms.
As the mobile software industry continues to evolve, expect more transformations and fewer constants in both technology and policies. This conflict represents just one step in an ongoing evolution.
