Monday, May 10, 2021, 17:06 Economy

Bloomberg: Apple Likely To Win Case Against Epic Games – With Concessions

Epic Games' first court appearance in its proceedings against Apple last fall wasn't strong. At the time, many analysts claimed that it would be very difficult for Epic Games to convince the courts that there's anything wrong with Apple's 30% cut taken from all purchases made on the App Store. Now that the main proceedings have finally finished this week and the final witness statements and court documents have made their appearances, the situation looks slightly better for Epic Games. Apple's still likely to win the proceedings, as only a few of Epic Games' claims in court have actually held up. An Apple representative even stated that Epic Games' performance in court was a waste of time, as much of their material simply strengthened Apple's case.

Apple To Only Tax Developers At Half Rate For First Million USD
Even though Apple is expected to win the case, it's still likely that the company will be prepared to make a few concessions. According to Bloomberg, there are about to be 3 major changes to the App Store, one of which takes suit after the Google Playstore's model – where developers are only taxed at 15% prior to the first million in sales. There was already movement in this direction at Apple as early as the last few months – for example, sinking fees for developers on the App Store with less than US$1 million in sales per year.

Cloud Gaming Could Finally Make An Arrival To iOS
Among the expected coming changes, Apple is likely to allow game streaming services to finally practically make their way over to iOS. Currently, it's not allowed to offer a streaming service that offers the ability to stream more than one title. Mark Gurman at Bloomberg is under the impression that Apple will finally open up iOS to cloud gaming. Apple's current ban on cloud gaming services on the App Store isn't reflective of the current development of the market as a whole and even could lead to the company losing revenue from mobile gamers otherwise if the decision is made too late.

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Promotion Of External Stores
Another thing that could be up for change according to Gurman is the current ban on the promotion of stores external from the App and thus not subject to Apple's App Store cut. The most recent court battle likely wouldn't have even taken place had Apple allowed Epic Games to advertise the purchase of "VBucks" for the game Fortnite from the company's own Epic Games site inside the Fortnite for iOS app. This provision from the early days of the App Store no longer seems to serve the same purpose now that a number of more well-known and trustworthy, big-name developers have run into issues for advertising external stores. For developers, the changes can only mean good things.

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