Epic Games vs Apple and Google in Mobile Marketplace Industry

Epic Games Inc., developer of the popular Fortnite, is expanding its mobile marketplace by adding third-party games. This move intensifies its ongoing dispute with Apple and Google over app store fees.

The update introduces the first third-party mobile games to the Epic Games Store, including titles for Android devices globally and iOS devices in Europe. Some games will be free to play. Epic’s mobile store, launched in August, initially featured its own titles, including Fortnite and Rocket League.

As Bloomberg reports, Epic has invested over $1 billion into its digital storefront. CEO Tim Sweeney emphasized the company’s strategy of prioritizing growth over immediate profits. “We’re spending more money than we’re making every year because we choose to invest in growth,” he stated.

Since 2020, Epic has challenged Apple and Google’s control over app distribution, achieving partial victories. A federal court ruled Apple must allow alternative payment methods in its App Store, and Epic won an antitrust case against Google. Despite these outcomes, barriers remain. Sweeney highlighted issues like Apple’s Core Technology Fee and pop-up deterrents, which limit Epic’s ability to grow its user base, currently at 30 million installs instead of the projected 100 million.

In 2023, Apple and Google collected approximately $23 billion from app store fees, taking a 30% commission on sales. Matthew Ball, CEO of Epyllion, noted these fees restrict developers’ ability to reinvest and innovate, hindering growth and new business models.

Epic’s platform charges a lower 12% commission and plans to cover Apple’s Core Technology Fee for developers participating in its free games program. Sweeney criticized Apple and Google’s dominance as “the biggest abuse of market power in modern history,” framing Epic’s efforts as a long-term investment in reshaping the gaming industry.

Epic’s expansion signals a push for greater competition and innovation in the app marketplace, aiming to benefit both developers and players.