Mobile Payments

Apple, Google Boot Fortnite From App Stores Over In-App Payments

Apple Removes Fortnite From App Store After Epic Games Promotes Direct Payments

After Epic Games provided gamers with a discounted way to purchase digital items directly via the company, Apple took the Fortnite app off of its App Store Thursday (Aug. 13) and noted that the game contravened its rules.

The game maker filed suit soon after, claiming that the tech company was conducting itself in a monopolistic manner, CNBC reported. Google also removed the app from its store after the legal action was filed.

Epic Games said in the legal filing, “Apple’s removal of Fortnite is yet another example of Apple flexing its enormous power in order to impose unreasonable restraints and unlawfully maintain its 100 percent monopoly over the iOS In-App Payment Processing Market.”

In a post on its website regarding “The Fortnite Mega Drop,” the game’s team wrote, “Today, we’re also introducing a new way to pay on iOS and Android: Epic direct payment. When you choose to use Epic direct payments, you save up to 20 percent as Epic passes along payment processing savings to you.”

A representative of Apple said in a response to CNBC, “Today, Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users. As a result, their Fortnite app has been removed from the store."

The news comes after an Apple-supported study determined that commission rates on the company’s App Store are similar to those of other major sites. That research looked into the fees of large app stores like the Amazon Appstore, Samsung’s Galaxy Store and the Google Play Store as well as platforms such as the Microsoft Store.

The researchers noted in their report, “All these app stores charge the same standard commission rate as Apple (30 percent).”

Apple has a 30 percent commission rate for the first year of subscriptions, and then its fee falls to 15 percent.

——————————

NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

TRENDING RIGHT NOW