Epic Lost an Eye-Watering Amount of Money Fighting Apple and Google

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Epic Lost an Eye-Watering Amount of Money Fighting Apple and Google

Highlights

  • Epic Games spent hundreds of millions on Apple and Google lawsuits.
  • Epic CEO Tim Sweeney also estimates that the company might have lost out on $1 billion in revenue due to Fortnite being banned from the iOS App Store over the past four years.

As a seasoned gamer with decades of experience under my belt, I can’t help but admire Epic Games’ tenacity and courage in standing up against the giants like Apple and Google. While it’s disheartening to see such a substantial chunk of money being spent on legal battles, I find myself in awe of their commitment to fighting for fairer app store policies.

As an ardent supporter, I can tell you that our battle against Apple and Google has been a costly one, running into hundreds of millions of dollars, according to a high-ranking official at Epic Games. But the true price tag of our fight against today’s app store policies is likely much greater than what we’ve publicly disclosed.

In August 2020, Epic Games filed lawsuits against both Apple and Google, alleging they were abusing their power by dominating their mobile app stores. The aim of these lawsuits was to break the duopoly and open up opportunities for alternative payment systems and avenues for distributing apps. Unfortunately, Epic’s case against Apple failed on nine out of ten points, but it had more success with Google, as a jury sided with Epic on all eleven counts brought against them.

Epic Spent a 9-Digit Sum on Legal Battles Against Apple and Google

However, these accomplishments didn’t come without significant financial investment. In fact, Epic Games CEO Tim Sweeney disclosed that the company has invested “hundreds of millions” in pursuing two ongoing lawsuits. This revelation was made during a recent meeting with reporters prior to the August 16 launch of the Epic Games Store Mobile marketplace. When asked about the total cost of their app store litigation by Stephen Totilo of Game File, Sweeney mentioned that Apple’s legal fees amounted to approximately $74 million.

Epic Might Have Lost Out on $1 Billion in Revenue Over Apple Clash

Legal costs are merely one aspect of the bigger picture, as Sweeney points out, there’s also the significant impact of lost income from Fortnite being excluded from Apple’s App Store for several years. In fact, this popular battle royale game might have missed out on approximately $1 billion in potential revenue over the last four years due to its absence from the iOS App Store.

Despite any doubts, Sweeney expressed optimism about Epic’s future, particularly with Fortnite reappearing on the iOS App Store in the EU. However, it remains undecided when the game will be accessible again for iPhone and iPad users in the US.

Although Apple managed to win on nine out of ten claims in the lawsuit brought by Epic Games, it was still found to have engaged in anticompetitive practices related to limiting developers’ ability to direct users towards alternative payment methods within apps that don’t rely on the App Store for in-app purchases. As a result, Apple was mandated to permit developers to incorporate links to external payment options within their apps. Unhappy with this outcome, Apple considered appealing the Epic Games case to the Supreme Court; however, the highest court in the nation declined to hear the case in January 2024.

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2024-08-17 00:53