Fortnite' Maker, Spotify Form Advocacy Group to Push for App Store Changes
September 24 2020 - 7:30AM
Dow Jones News
By Sarah E. Needleman
Companies including "Fortnite" maker Epic Games Inc., Spotify
Technology SA and Tinder owner Match Group Inc. have forged an
alliance to pressure Apple Inc. and other app-store operators to
make changes to their marketplace rules.
The Coalition for App Fairness, a nonprofit registered in
Washington, D.C., made its public debut Thursday, saying most app
stores collect excessive commissions from software developers on
users' digital purchases and stifle competition by giving unfair
advantages to their own products and services. It plans to push for
legal and regulatory changes to how the companies operate app
stores.
A coalition spokeswoman said the group formed in August as the
result of conversations among developers about their app-store
experiences and shared desire for change. She said the group wasn't
created in response to coalition member Epic last month suing Apple
and Alphabet Inc.'s Google over the removal of "Fortnite" from
their respective app stores.
"The gatekeeper platforms that operate these app stores must not
abuse the control they enjoy and must adhere to oversight to ensure
their behaviors promote a competitive market and provide consumers
with equitable choice," the self-funded group said in a statement.
Other founding members include ProtonMail email service owner
Proton Technologies AG, trade group News Media Europe and
project-management software maker Basecamp LLC.
App marketplaces have evolved to become the gateway for how
consumers access everything from entertainment to education and now
are responsible for billions of dollars of economic activity
annually. These app stores have also been a growing source of
revenue for companies including Apple and Google, as they collect a
cut from sales of paid apps, digital subscriptions and in-app
purchases.
The increased importance of the app stores has also generated
more scrutiny over how they operate. Apple has recently faced
public criticism from a number of large companies, including
several of the coalition's founding members and others such as
Microsoft Corp. and Facebook Inc. Apple is also being investigated
by Congress, the Justice Department, the European Union and the
Federal Trade Commission on antitrust grounds.
Apple has defended itself, saying its app-store commission is in
line with what most other app marketplaces charge and that it
provides services including user security and privacy.
The battle over app store rules is currently playing out in
California federal court. Epic sued Apple as well as Google in
August after the tech giants removed "Fortnite" -- one of the
world's most popular videogames, with 350 million registered users
-- from their app marketplaces. The companies made the move because
Epic added an unauthorized payment system to the shooter-survival
game that skirted their 30% commission on in-app purchases.
Apple earlier this month countersued Epic, asking a federal
judge to award punitive damages and restrict the developer from
continuing what it describes as unfair business practices. A court
hearing is scheduled for Sept. 28.
Epic has been spoiling for a fight, releasing on the same day it
sued Apple and Google a video parody of Apple's famous "1984"
commercial that aired nationally during Super Bowl XVIII, with the
iPhone maker cast as Big Brother. The closely held developer also
launched a "Fortnite" tournament with prizes such as hats designed
to show animosity toward Apple. And it pushed users to promote the
hashtag #FreeFortnite across the internet, in addition to
publishing on its website a point entitled "Why We Fight"
explaining its mission to players.
The new coalition said it wants app developers to be permitted
to use payment systems and other ancillary services of their own
choosing, among other demands.
"The basic freedoms of developers are under attack," said Tim
Sweeney, chief executive and founder of Epic, in a statement. "We
are an advocate for any company that's ready to reclaim its rights
and challenge the anti-competitive behaviors that exist on app
stores today."
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
September 24, 2020 07:15 ET (11:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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