Epic Vs Apple: The Verdict

The App Store is under scrutiny like never before. Charlotte Henry explores the legal challenges the company is now facing…

- Charlotte Henry

The App Store opened on 10 July, 2008, with just 500 apps available, including The New York Times, eBay and Travelocity. It has since transformed over the years and expanded to become core to Apple’s entire business.

However, as it has grown in importance, it has become a source of controversy and Apple is in the midst of legal and PR battles in a bid to defend a prized asset and the revenue it brings in. In 2020, the App Store had a gross income of around $64 billion, with most of that coming from games.

Apple ‘App Tax’

Two of the highest-profile critics of the App Store are Spotify, the music streaming service, and Epic Games, the maker of the wildly popular Fortnite game. And the two companies are not shy in sharing what they think.

In May this year, Spotify’s chief legal officer Horacio Gutiérrez described Apple as being “a “ruthless bully” that “uses its dominance to hobble competitors” in an article for the Wall Street Journal.

Epic and Spotify are among many big names who have joined the Coalition for App Fairness, which was created back in September 2020. Other members include audio streaming service Deezer, encrypted email provider ProtonMail, and Bluetooth tracker firm Tile. Together, these companies are arguing against various aspects of the Apple App Store rules, but in particular there is dissent over Apple taking a cut of up to 30% of every app-related transaction.