At the center of this long-running lawsuit is Fortnite, a popular video game produced by Epic that was removed from Apple’s App Store last summer for violating Apple’s rules on technical billing. due to have arbitrarily established a payment system of their own. Apple takes 30% of the value of in-app purchases on iOS devices and does not allow the use of alternative payment systems. Fortnite’s removal from the App Store prompted Epic to file a lawsuit against Apple. Squeeze the developer Epic accuses Apple of having monopolistic control over the “ecosystem” of the iOS operating system, with app makers forced to abide by its strict restrictions if they want access to hundreds of thousands of users. million iPhone and iPad users, Apple also countered that there are several other places where users can buy apps and their commissions help the company make its devices better and more secure. The CEO has his first court appearance since taking power at Apple. Photo: Getty. Several executives from both sides also testified, including Craig Federighi, Apple’s senior vice president of software engineering, and Phil Schiller, Apple’s former chief marketing officer, now serving as Apple’s senior vice president of software engineering. new role as Apple Fellow. Both were subpoenaed by the court earlier this week. Epic Games CEO Tim Sweeney is the first witness in the nearly three-week trial and is expected to end on Monday. Tim Cook and Apple are facing many dangers, not only this cult lawsuit. Cook’s testimony on Friday is likely to spark a battle against the growing antitrust pressure it is facing. Other “Frenemy” (meaning both friends and enemies) like Spotify and Match Group, the owner of Tinder, have all accused Apple of anti-competitive behavior. Even legal authorities in some countries including the US and UK have launched investigations into Apple’s regulations. Despite numerous defenses before Congress and numerous public appearances and interviews, Mr Cook appears to be preparing for his day in court. According to a report from Wall Street Journal , he spent many hours mock interrogation with former prosecutors to simulate what he might face during the trial. “The scary thing for Epic is that Tim Cook is such a compelling witness,” said Herbert Hovenkap, professor of legal studies and business ethics at the Wharton School of Business at the University of Pennsylvania. He’s doing what he’s been paid to do, which is bringing Apple’s lawsuit to the public.” According to the list of witnesses presented to the court, Mr. Cook will speak about “Corporate Values; Apple’s business operations and the development and launch of the App Store; the competition that Apple faces.” An Apple representative said Mr. Cook is likely to share more from his personal perspective on security and privacy issues – issues he has often criticized companies in the past – and the importance of them to Apple’s product philosophy. Roses come with quality Mr. Cook is expected to synthesize and strengthen the arguments that other Apple lawyers, experts and executives have made during the trial – that the iPhone’s App Store is not a proprietary trademark. The company argues that the 30% commission it receives through in-app purchases is not an illegal gain, but rather to make Apple devices better, more secure like their strict management of applications on Apple devices. In his testimony, Schiller highlighted the amount of money Apple has spent on research and development — an estimated $100 billion over the past 15 years — to make product improvements that developers are benefiting from. it. He also sought to counter Epic’s efforts to accuse Apple of being a monopolist. The lawsuit between Apple and Epic will determine the future of the relationship between app developers and Apple. Photo: Cnet. Epic Games company says Apple is forcing developers to play by its draconian rules such as only using the App Store and means of paying for in-app purchases if it wants to gain access to a market of more than a billion dollars. iPhone and iPad users. (Michael Schmid, Apple’s head of game business development for the App Store, revealed during the trial that Apple made more than $100 million in commissions from Fortnite.) Schiller also listed a range of Apple competitors: Google, Samsung, Motorola, Huawei and even game consoles like Sony’s PlayStation, Microsoft’s Xbox and Nintendo’s Switch. Apple claims that many of these companies also take 30% commissions and have similar restrictions on outside apps. “There are still a lot of other competitors in the distribution of applications, not just Apple,” he added. Federighi, the company’s chief software officer, further emphasized the importance of Apple’s security measures for the iOS operating system on its mobile devices. He even heavily criticized the company’s MacOS computer operating system during the trial. Unlike iPhones, Macbook laptops allow the use and download of applications from outside, a process known as “side-loading”. Epic has repeatedly pointed out and called on Apple to emulate this approach with its mobile devices. However, Apple’s lawyers and executives argue that the iPhone needs to be more secure because the risk of the device being exposed to security holes and exploitation is great, especially when smartphones are used. often contain more sensitive personal data of users than other devices such as computers, laptops… “If you take Mac security techniques and apply them to the iOS ecosystem, with so many devices and value for it, things are going to be a lot worse than they already are. on Mac,” said Mr. Federighi. “We now have a bunch of malware on Mac, which is much worse than iOS. It’s not acceptable!”. Florian Ederer, an economics professor at the Yale School of Management, thinks Cook will stick to his earlier arguments. “It is very difficult to get any new information or arguments from this CEO’s testimony that have not yet been brought to the attention of the judge,” he said. “Basically, having Cook in court is Apple’s best move to show the judge that they are taking this matter completely seriously. If there is any other purpose, perhaps it is the respect of Cook in particular and Apple in general for this lengthy litigation process,” Ederer added.

This information was confirmed by the iTunes Customer Experience Manager at the time, Dale Bagwell, on Motherboard in an email that 128 million consumers downloaded more than 2,500 apps infected with malware that came from fake copies. Xcode’s appearance. In total, these 2,500 infected apps were downloaded more than 203 million times in the App Store. Another Apple recruiter mentioned that “China represents 55% of customers and 66% of downloads”, also referring to the malware “XcodeGhost”. According to multiple internal Apple emails, about 18 million affected users are based in the US. Notably, Apple has had many internal discussions about how to send warnings to affected developers and users because the number of customers potentially exposed to malicious code is quite high. Even so, App Store VP Matt Fischer notes that this will pose some challenges in terms of localization of the email’s language, since downloading these apps takes place in the App Store. all over the world. As a result, Apple failed to send warnings to users and developers. Even popular apps like WeChat and Angry Birds 2, designed for the Chinese market, are on the affected list, the report said. As soon as the malware was identified, Apple asked developers to immediately recompile their apps with a genuine version of Xcode. Lookout explains that “developers are drawn to downloading this fake version of Xcode because it will download much faster in China than the official version of Xcode from Apple’s Mac App Store.” Following this incident, Apple increased the security of Xcode installation and malware scanning when submitting apps to the App Store. In testimony from one of the heads of the App Store at the trial of the lawsuit between Epic and Apple, this person said the iOS app review process is part of Apple’s charge for the App Store.

Accordingly, the group is asking Apple to return money to UK customers, with about 19.6 million people will be compensated a total of 1.5 billion pounds (equivalent to 2.1 billion USD). They believe that the US technology company has a monopoly when the App Store is the only “door” to download many applications to iPhone and iPad. The application emphasizes that after 13 years, the App Store is still the only source for Apple devices to access applications, proving that the company has been selfish, charging login fees and using this mechanism unfairly. They claim this is proprietary behavior. According to the lawsuit, Apple receives about 30% of the cost of purchasing an app. Apple, for its part, calls this a planned lawsuit and shouldn’t have happened. The company insists it is committed to its customers and that the App Store has greatly benefited the UK creative economy.
In addition, Apple is currently facing many legal challenges related to exclusivity when using the App Store because of a lawsuit for the same reason by Epic Games – the maker of the famous Fortnite game. according to iMore

Photo: Sina Technology According to CNBC, Apple today released a report on its App Store-related data, mainly describing the work the App Store has done in the direction of security and fraud prevention over the past year, and published a lot of related data. This is the first time Apple publishes such data, in this report, Apple does not point out what they bring to developers and users, but what they refuse to ensure safety and experience. App Store experience. Denied 1 million applications Since its inception in 2008, the Apple App Store has become the world’s largest distribution channel and app download platform. According to official data, up to now, there are a total of 1.8 million apps distributed on the app store in 175 different countries and regions around the world. In addition to the quantity, quality and safety of the App Store are also important reasons for many to choose, and even the reason why users switch from Android to iPhone. But the average user rarely thinks behind millions of apps is Apple’s attempt to secure apps on the platform. In fact, security threats have existed since the App Store was launched in 2008, and are becoming more sophisticated as the App Store has grown. Of course, Apple is also working to raise and improve its own security standards. In order for high-quality apps to be listed on the App Store and for developers and users to have the best experience, behind that is the efforts of the Apple App Store review team, including machines (the program AI detects), but Apple believes humans are the last line of defense. On the one hand, the review team develops relevant guidelines and is constantly updating to measure if an app meets Apple’s security standards at launch. On the other hand, many developers have encountered the case of having to submit apps multiple times before they hit the shelves, behind this being the tight scrutiny of Apple’s review team. The reason may be because their application is incomplete / not good enough or not satisfied Apple with the security requirements. In 2020, Apple’s app review team supported 180,000 new developers to bring their work to the App Store for the first time; However, due to the stringent app store rating criteria, many applications were rejected. According to Apple’s disclosure, they rejected 1 million new apps and 1 million app update requests last year. Let’s take a closer look at the apps that were denied on the list, partly because of a breach; There were also 215,000 applications rejected for asking for too much user data on mobile phones; 48,000 apps were rejected because they contained hidden functions, 150,000 apps were rated as spam or otherwise copied apps. All will affect the quality of the apps in the App Store in varying degrees, thereby affecting the user experience. These numbers represent Apple’s ambition to pursue its own high-quality app store and ecosystem, and is also the reason why many Android users “admire” the iOS ecosystem as mentioned above. . “Stone” 470,000 toxic developers Apple CEO Tim Cook speaks at the Apple Worldwide Developers Conference (WWDC) at the San Jose Convention Center in 2018. In addition to denying apps, Apple sometimes punishes developers for violating the rules. For example, some developers intentionally change application functionality after passing a review or even engaging in criminals / crimes. The most common are gambling-related apps, illegal lending, and pornography; there are even apps for drug trafficking, sex chat, and more. According to Apple data, by 2020, about 95,000 apps will be removed from the App Store due to fraud and fraud. If a developer’s violation is severe or recurring, their account will be permanently closed. In 2020, Apple terminated 470,000 developer accounts because of the risk of fraud. In the past month alone, Apple blocked more than 3.2 million app installs through the Apple Developer Enterprise Program. The original purpose of this project was to allow large organizations like companies and businesses to develop apps for internal use only, not open to the public. But some people use this approach to “bypass” the internal application review and abuse process. Of course, no matter how tight the controls are, it’s inevitable that there are up to 1.8 million apps on the App Store. Apple has also opened up a feedback mechanism, users or developers can choose to “report a problem” function in the App Store or call Apple support. Stop $ 1.5 billion in fraud suspected transactions Problem security of Android is often compared with Apple. Since the Apple ID is tied to the payment account and is the “key” of the Apple ecosystem, it is also very easy to become a target for criminals. As a result, Apple is building more secure payment technologies, such as Apple Pay and StoreKit. Currently, more than 900,000 apps in the App Store are using these technologies to sell goods and services. For example, credit card information in Apple Pay won’t be shared with the merchant (and the merchant won’t see it), which eliminates risk factors in the checkout process. However, criminals can also use the App Store to purchase goods and services for money laundering or other improper purposes. According to official data, by 2020, Apple prevented more than 3 million stolen credit cards from being used to purchase goods or services through technical means + manual review. In addition, they block more than $ 1.5 billion in “potentially fraudulent transactions”. The revelation comes amid Epic Games’ antitrust lawsuit against Apple and focuses on the App Store failures. The Fortnite maker is looking to force Apple to remove 30% of the commission on in-app purchases. Epic lawyers have argued that Apple’s App Store is too “wall-bound,” hindering app makers from competing, and that Apple’s rules are unevenly applied to different developers. . The lawsuit filed by Epic Games calls for changes to the existing app review process and the use of other in-app payment systems. Epic also says Apple’s process is unfair, sometimes approving malware in the store. Apple employees argued in court that the number of errors it made was very small given the size of the App Store. Apple also strongly denies the abuse of market power, saying that the lawsuit Epic filed with is an “attack” on a business model that benefits developers as well as consumers. Apple has protected the App Store as an essential part of its business. Last week, an Apple lawyer argued that allowing users to install software from outside the App Store, like Android, creates a security risk and that Apple doesn’t want to be Android.

CEO Tim Cook speaks at WWDC 2018 (Image: Getty Images) This is the first time Apple publish this data. It is a sign of “defective apple” becoming more transparent in the process of approving and rejecting iPhone applications under pressure from many countries. Thanks to the application review system, comparing with the App Store regulatory list, the company can keep iPhone users safe from fraud, malware or poor experience. Apple also published some notable figures for 2020. Accordingly, the manufacturer Iphone rejected nearly 1 million applications submitted for the first time; deny nearly 1 million application updates. 48,000 applications removed due to use of “hidden or unreported features”; 150,000 applications removed for spam or other application copying; 215,000 apps removed for collecting too much user data or violating privacy; 95,000 applications were removed due to phishing, usually they change to other types of applications such as gambling, porn. 470,000 accounts disabled from the developer program for phishing. Additionally, last month, Apple declined 3.2 million app downloads using an enterprise license. This is how large businesses often use to circumvent the App Store law to install internal apps on employees’ iPhones. Currently, the lawsuit between Apple and Epic Games is taking place. Game maker Fortnite denounces the App Store as a “closed garden”, hurting developers, and Apple discriminates against many. Epic Games also confirmed that Apple’s process is not perfect, sometimes approving malware. Apple employees themselves have admitted their process is not good enough to prevent scams. At the trial, Apple said, combining 500 automated reviewers and testers to review nearly 5 million applications per year, from 2017 to 2019 (updates included), the rate from declined from 33% to 36%. The flaws are too small for the size of the App Store. Apple sees the App Store as a fundamental, irreplaceable part of its business. This is the only way for users to install software on the iPhone. Apple’s attorney argued that if users let users download apps from outside the App Store the way Android is doing, they would be at risk of security. Apple doesn’t want to be Android. Du Lam (According to CNBC)

The malware affected 128 million iPhone users. The XcodeGhost malware was spread by hackers through the hidden installation of a version of Xcode programming software, then sharing on forums for iOS developers. Some of these malicious applications at that time included many popular names such as WeChat, the Chinese version of Angry Birds 2. Statistics show that about 2500 applications were infected with malware and up to 203 million users who downloaded these anti-malware applications Security experts believe that the XcodeGhost malware can collect information such as infected application name, device model, network information and some other data. Later, Apple said it did not record the data associated with the user’s identity, or the iCloud login password was collected. After the problem was discovered, Apple asked developers to use the official version of Xcode to compile the app before re-releasing it on the App Store. According to the 9to5mac Apple also strengthens the security process when installing Xcode, checking the application’s malicious code before releasing it on the App Store after the incident.

Epic Store offers titles from smaller indie titles like The Stanley Parable and Tormentor X Punisher to the blockbuster 3-A, Watch Dogs and Star Wars: Battlefront 2. Everything really exploded when in the summer of 2020, the Grand Theft Auto’s week-long free release dragged on players to land, and Epic’s server crashed just minutes later. All these special offers are out of pocket by Epic Games to enhance the brand’s identity, a small amount of money, luckily, the company has to pay the bills very quickly.

According to PC Gamer, Epic’s massive legal battle with Apple over Fortnite revenue on the App Store leaked the total amount invested in the Epic Store, around $ 444 million. And of course, 273 million of that is considered a net loss as Epic has launched a variety of free gift programs. However, the company is not too confused by this investment, but also hopes that profits will start to increase in 2023 and more than a quarter of a billion dollars is spent is only part of a long-term strategy.

This confidence is not without foundation, Epic guarantees a steady stream of profits from Unreal Engine and Fortnite. With Fortnite still considered one of the most successful battle royale games on the market today.

Although the legal battle between Epic Games and Apple (US first instance trial) will take place in May, right now the related developments of the case continue to attract attention from the public. .

A few days ago, the Australian trial was postponed for the third time, but the legal documents show interesting information. The Epic Games Store lost approximately $ 181 million in 2019 and nearly $ 273 million in 2020, showing that since its launch in 2018, the company has never been profitable. Also, in 2021, Epic Games’ expected loss is about $ 139 million.

According to Apple forecasts, the business of Epic Games by the end of 2021 has lost $ 600 million after 3 years. To be profitable, Epic Games may have to wait until 2027.

The thing has been predicted from before

In fact, Epic Games has previously confirmed that the Epic Games Store will not be profitable until 2023. On loss information, Tim Sweeney, CEO of Epic Games, is very optimistic: ” Although Apple calls it a loss, in my view it is an investment, which is also the basis for bringing huge profits in the future.

Although the CEO of Epic Games is confident about profitability, it still cannot change the fact that they have “lost”. As a company that owns Unreal Engine tools, the loss of 450 million USD in the past 2 years is beyond the imagination of many people.

In this case, with the backing of the Unreal Engine being used by most of the developers, the Epic Games Store took up to 4 years to be profitable causing people to question whether or not the business strategy is. “Take profit as a profit” of company leaders?

Free business strategy

According to the official data Epic Games published before, the progress of the game store in the past 2 years is very clear. By 2020, the total number of users on the Epic Games Store will reach 160 million, up 56% from 108 million in 2019. Besides, daily active users reach 31.3 million in 2020, increasing 192% and total user time is 5.7 billion hours, up 70%.

But the problem also lies here, in this era, an emerging gaming platform can achieve such a marked growth, spending money is an inevitable option.

According to the New York Times, in 2020 alone, Epic Games has invested about $ 444 million in the monopoly of the game, with Control of 505 Games alone, the amount amounted to 10.45 million USD. Such a huge investment, in exchange for a one-year monopoly of several games, is also Epic’s best weapon for taking the market from Steam.

But Epic’s revenue from these exclusive and third-party games is relatively limited. In 2020, players spent $ 700 million on the Epic Games Store, which is only $ 20 million higher than in 2019. Of which, revenue from third-party titles is $ 265 million, only up $ 14 million compared to 2019. Apple estimates show that if you count transactions in 2019, Epic will lose at least $ 330 million in exclusive expenses.

Of course, in addition to investing money in exclusive content, Epic Games also promotes a free business strategy to attract new users. The $ 450 million loss is mainly due to this business method. According to Epic’s official data, from 2019 to 2020, the platform distributed 180 games for free, with a total value of up to $ 3,862 (US price) with 950 million purchases. This is actually a buy 1 get 1 free, but with a free gift for buyers, Epic Games has to pocket money for the developer.

On the one hand, they’re spending money on game companies and developers for exclusive content, on the other, they’re out-of-pocket attracting players who aren’t willing to pay. After all, in terms of business, Epic Games is the one to lose.

A healthy competition

Indeed, for developers, whether their game has a chance of being included by Epic in the Epic Games Store (471 games in 2020) or directly on Steam, Epic’s arrival makes a difference. special. For the gaming industry, the PC games market is no longer dominant enough and only acts as an incentive for competition. If Epic can gain a foothold, Steam’s upcoming business strategy must also change.

With the strength of the Unreal Engine, Epic Games Store can completely use competitive tactics to disadvantage Steam. However, to challenge Steam’s position is not easy, especially keeping players from paying fees, Epic Games has too many obstacles to overcome before making any profits.

Of course, competition is inevitable and is also a necessary factor for the development of the market. Whether healthy competition can be maintained, that depends pretty much on the final court ruling after the legal battle between Epic Games and Apple is over.