Epic Games attacks the duopoly
In their battle against the dominant forces of the global internet, Apple and Google, which began approximately three years ago, Epic Games has emerged victorious in a comprehensive legal triumph. A San Francisco court, where the developer of the immensely popular game "Fortnite" lodged a complaint against Google's Play Store business practices, ruled favorably on all counts. The court condemns the internet marketplace that delivers millions of apps for the Google Android operating system as an unlawful monopoly. This verdict not only deals a significant blow to the Alphabet subsidiary but also affects Apple, which had previously faced Epic's legal challenges regarding similar practices in the App Store.
$200 Billion at stake
The game developer opposes the steep 30% fees charged by both Google and Apple for app transactions in their stores. Developers find it challenging to evade these fees since the App and Play Store reign as the premier global platforms for distributing their products. If regulatory interventions following this legal dispute disrupt the established business model, the two tech giants will not only contend with a $200 billion duopoly challenge but also face a potential threat to one of their most lucrative and growth-oriented sectors. Apple is particularly vulnerable. Approximately 38% of the combined revenues from both internet stores in the previous year originated from the Play Store, with the remaining share attributed to the App Store. Insiders reveal that for every dollar Apple collects as a fee from the App Store, the company retains $0.80 in profit.
Defeat against Apple
Thus, it is not surprising that both Apple and Google have fortified their internet stores into formidable strongholds, where entry and residence occur only under strict and expensive rules. Even though Epic has now breached a path in the fortress wall, the castle lords are not conceding defeat. Google's parent company, Alphabet, has announced an appeal. The prospects of success are not easily dismissed. After all, Epic Games had already suffered defeat in a similar case against Apple in two instances.
Looking beyond legal confrontations, these tech behemoths have alternative strategies to fortify their store defenses. They could introduce a variety of fees for diverse "services" offered to providers, ensuring their own financial viability. Not all available tactics and means have been exhausted yet.
