Platform Deal Fortnite #2

Taken from DealBook Briefing August 18, 2020 

The Apple-Epic battle kicks up a notch

One of Silicon Valley’s most closely watched fights escalated yesterday, after Epic Games accused Apple of threatening to block it from important developer services — a move that could have repercussions beyond games like Fortnite, Epic’s marquee title.

Epic said that it could lose access to developer accounts and tools for iOS and Mac operating systems as a result of the company’s dispute with Apple over the 30 percent commission that software developers pay for sales made within iOS apps. Apple removed Fortnite, the hugely popular multiplayer game, from its app store after Epic urged players to pay it directly rather than via Apple. Losing Apple’s developer tools is a bigger deal than just blocking Fortnite on the App Store. Epic’s software platform, known as the Unreal Engine, underpins scores of other video games and apps (including software for training astronauts). Revoking its developer accounts would leave Epic unable to update that engine for iOS or Mac devices, meaning other developers’ games and apps that rely on it would eventually become unusable. • That could force developers to use other engines — not a small task — and could put a dent in Epic’s recently minted $17 billion valuation. Apple said in a statement that it was simply forcing Epic to comply with rules that apply to all developers on its platforms. Epic will be hoping to rally more companies to its cause. It has already tapped into growing frustration with Apple’s power over its App Store, which has become the subject of antitrust scrutiny in Washington and Brussels. And The Information reports that the game developer is trying to form a coalition of like-minded partners, including Spotify and Sonos.