Fortnite Creator, App Developers Call Apple Settlement a ‘Sham’ to ‘Avoid Judgement’

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Apple App Developers Settlement Overview: 

• Who: Fortnite creator, Epic Games CEO and other Apple app developers had harsh criticism for the $100 million settlement announced recently. 
• Why: Epic Games and other Apple app developers are pursuing similar class action lawsuits accusing Apple and Google of driving up prices. They say the terms of the Apple settlement continue to treat developers unfairly. 
• Where: Class action lawsuits are pending in California federal courts. 

A $100 million class action settlement between Apple and around 67,000 app developers who accused the company of monopolizing the market for app development has been called a “sham settlement” that further highlights “Apple’s total control over the app marketplace” by app developers, including Fortnite creator, Epic Games CEO.

“Apple’s sham settlement offer is nothing more than a desperate attempt to avoid the judgment of courts, regulators, and legislators worldwide,” Coalition for App Fairness Executive Director Meghan DiMuzio said in a statement reported by Law360.

“This offer does nothing to address the structural, foundational problems facing all developers, large and small, undermining innovation and competition in the app ecosystem.”

Apple App Developers Criticise Apple Settlement

The coalition, which includes Epic Games – which is currently in a separate legal battle with the tech behemoth, said so-called concessions in the settlement were nothing of the kind, with most already being enacted by Apple.

“Allowing developers to communicate with their customers about lower prices outside of their apps is not a concession and further highlights Apple’s total control over the app marketplace,” DiMuzio continued.

“If this settlement is approved, app makers will still be barred from communicating about lower prices or offering competing payment options within their apps. We will not be appeased by empty gestures and will continue our fight for fair and open digital platforms.”

The settlement would end a class action lawsuit that was filed in 2019 on behalf of around 67,000 app developers who make less than $1 million per year by selling their applications on the company’s App Store and who allege that the company charged exorbitant commissions for purchases made on the App Store Class Members will receive between $250 and $30,000 each if the settlement is approved. 

However, Apple has since adjusted its policies and charges a lower commission of 15 percent on sales, as part of its Apple Small Business Program, which it launched earlier this year.

“Apple has committed to maintain the Small Business Program’s 15 percent rate for at least another three years,” the Apple app developers stated in their motion for preliminary approval of the settlement. “Apple has also committed to revise its ‘anti-steering’ Guidelines to permit app developers to communicate directly with their customers regarding alternative payment options. Apple has further agreed to institute and maintain a range of structural reforms that will enable developers to better create, distribute, and monetize their apps.”

Concessions in Headlines, Not Settlement, Says Apple App Developer Epic Games

“Major concessions” touted by Apple in the app developer settlement, were nothing of the sort, according to public comments by Epic Games CEO Tim Sweeny. 

Sweeny said on Twitter that Epic was still fighting on in its case against the company, and he criticized media representations of “major concessions” in the settlement with developers, reports Law360.

“Who is Major Concessions? A commander in the Store Wars perhaps? So far I can find Major Concessions only in headlines and not in court documents. Has anyone seen Major Concessions? Where is she?”

Epic’s lawsuit, in which it accuses of setting extortionate pricing in its app store, is awaiting a ruling from a federal judge after it went to trial in May.

In the suit, Epic alleges that Apple charges large companies a 30 percent commission on purchases customers make through their apps, including through Fortnite and that the company’s control over the App is anti-competitive because app developers have very little choice about where to put their apps.

The company also says app developers shouldn’t have to pay large amounts of money to Apple or Google just to make apps for smartphones, however, when Fortnite creator Epic Games tried to sell the game solely through the Google Play store, the company alleges not enough people had access.

Do you think Apple app developers trying to sell games through the App Store deserve more? Let us know your thoughts in the comments section!

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