Tim Sweeney Reveals Fortnite’s Future After Apple Win
▼ Summary
– A US appeals court has ruled against Apple, affirming that its App Store rules allowing it to collect what Epic’s CEO calls “junk fees” are effectively shut down.
– The court ruled Apple can charge developers reasonable fees for external payment links, but only for its genuine coordination costs and intellectual property use, not a percentage of revenue.
– Epic Games CEO Tim Sweeney argues the ruling invalidates Apple’s ability to charge arbitrary fees and expects it to unblock global regulatory efforts against the company.
– Fortnite has returned to the US iOS App Store after a nearly five-year absence, following the legal developments and broader regulatory pressure like Europe’s Digital Markets Act.
– Epic has also settled its lawsuit with Google, leading to Fortnite’s return to the Google Play Store in the US, with Sweeney praising Android’s new leadership.
Following a significant legal victory against Apple, Epic Games CEO Tim Sweeney has outlined a new era for Fortnite and mobile app commerce, declaring the court’s decision a definitive end to what he calls “arbitrary junk fees.” The Ninth Circuit Court of Appeals recently upheld a ruling that Apple failed to comply with a 2021 order, which mandates that developers be allowed to link users to external payment methods outside the App Store. This decision is seen as a major win for the entire developer community, potentially reshaping how digital marketplaces operate.
The appeals court panel affirmed that Apple cannot impose its standard commission on purchases made through these external links. However, the judges also sent the case back to the original judge, Yvonne Gonzalez Rogers, with instructions to determine a reasonable fee Apple could charge. This fee would be strictly limited to covering the genuine costs Apple incurs for coordinating these external payment links and for the use of its intellectual property in facilitating such transactions.
Sweeney expressed strong support for Apple charging reasonable, cost-based fees for specific services. He pointed to expenses like app review processes, where real Apple employees perform the work. “If you want to have an app go through review with custom linkouts, maybe there’s several hundred dollars of fees associated with that every time you submit an app, which is perfectly reasonable,” Sweeney stated. His core argument is that the ruling invalidates Apple’s previous model of taking a percentage of all developer revenue generated through these external pathways. He firmly believes there is no justification for such a revenue share in this new framework.
This legal development coincides with Fortnite’s return to the U.S. App Store after a nearly five-year absence. Its removal stemmed from Epic’s direct challenge to Apple’s rules by implementing its own in-app payment system. Globally, regulatory pressure is mounting on Apple to open its ecosystem further, exemplified by the European Union’s Digital Markets Act, which already allows for alternative app stores like the Epic Games Store on iOS devices in Europe.
Sweeney criticized Apple’s current approach of resisting change until legally compelled in each jurisdiction. “So far, Apple has taken the strategy of collecting junk fees in every territory until they’re forced by law enforcers or regulators to stop,” he remarked. He hopes the company will eventually adopt a single, fair global policy instead of fighting protracted battles worldwide. He also believes this U.S. court opinion will empower regulators in other countries to challenge Apple’s fee structures, questioning why any nation would permit fees deemed illegal by an American court.
In a parallel move, Fortnite also made a comeback on the Google Play Store in the United States. This follows last month’s announcement that Epic and Google have agreed to settle their own lawsuit, resolving their disputes globally pending final court approval. Sweeney noted a positive shift in his dealings with Google’s Android leadership, stating, “They turned over a new leaf here,” signaling a more collaborative relationship moving forward.
(Source: The Verge)
