Wednesday, February 17, 2021

Will Epic Games take a bite out of Apple 's EU Apps business?

 

Epic Games filed an antitrust suit against Apple in the EU.  The complaint claims that Apple's application store and operating system creates anticompetitive barriers.  

Apple's App Store restricts application developers from transacting directly from application users which facilitates the App Store ability to collect take rate of all transactions. The dispute has been going on for several years and included several other application developers. 

In March 2019, Spotify filed a similar antitrust claim against Apple. The lawsuit argued that the App Store requirements and take rates allow Apple to price Apple Music fees below those charged by Spotify who passes on Apple's fees to customers.

The outcome of the EU and US lawsuits has the potential to redefines the App Store's and Android store's dominance over mobile application distribution and monetization.  

Reference: https://venturebeat.com/2021/02/17/epic-games-files-antitrust-suit-against-apple-in-european-union/

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