Mike Peterson
Epic Games CEO Tim Sweeney on Monday testified in the Epic Games v. Apple case, laying out and defending his reasoning behind Epic's suit against Apple.
Two of the major points of contention for Epic in its beef with Apple are the restriction on third-party app stores and Apple's 30% cut of app and in-app purchases.
"Epic didn't initially take a critical view of Apple's policies," Sweeney said. "It took a very long time for me to come to the realization of all the negative impacts of Apple's policy.
In his testimony, the Epic Games chief executive called "Fortnite" a "phenomenon that transcends gaming." He also described the battle royale game as a "metaverse" that includes social experiences and other virtual features.
When asked about whether there was a difference between Apple's 30% of app purchases and similar commissions paid to console makers, Sweeney said there's a "general bargain" in the gaming industry. Consoles sell at a loss and need game developers, while Apple sells the iPhone at a profit.
During the cross-examination, Sweeney was also asked about the "special deal" that Epic Games wanted from Apple. He characterized that inquiry as Epic Games wanting to come to an agreement with Apple, not a request for special treatment.
On the hot fix that ultimately resulted in "Fortnite's" removal from the App Store, Sweeney said he "wanted the world to see that Apple exercises total control over the availability of all software on iOS."
Sweeney was also grilled on V-Bucks, the in-game currency of "Fortnite." Apple's lawyer asked about the marginal cost of a V-Buck. Sweeney said there wasn't any costs to produce them.
At one point during the testimony, Apple's lawyer put up a chart showing the polices of other companies like Sony, Microsoft, and Nintendo. That includes taking a 30% commission, prohibiting the side-loading of apps, and requiring the use of a first-party payment system. During another portion of questioning, Sweeney says Epic Games continues to sell V-Bucks on those platforms because it agrees with the business models of those companies.
Sweeney also confirmed Epic charged developers a 60% fee when it distributed other games on its platform in the 1990s.
Apple's lawyers also asked why Sweeney didn't voice concerns when Epic Games originally signed a contact with the Cupertino company. Sweeney answered by saying he didn't try to renegotiate.
The Epic Games CEO also said he actually wasn't "completely certain" that Apple would actually remove "Fortnite" from the App Store after the implementation of the direct payment system. But he "hoped Apple would reconsider its policies."
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73 Comments
If these quotes are even remotely correct. How in the world is this guy a CEO of any company?
So consoles hardware is sold at a loss therefore they deserve a 30% commission rate but Apple makes a profit selling hardware so they do not? Really? Do you seriously think someone who has gone to college, law school and had the experience to become a judge is stupid enough to buy that line of reasoning? Please!
What a tool. Companies that dare to make a profit on something should then have to give access to his company for free. But if you sell your hardware at a loss - you can do what you ant for fees and charging. That's a well thought out legal point...
Fortnite means a lot to the under 12 crowd. So I guess it's there parents who are happy the day is off iOS for now.
So because Apple makes a profit, it should not be allowed to charge as much as the competition? Is Sweeney really believing his own BS?
Also he had to admit that all the other services take 30% commission. His platform takes a 12% commission and loses money. Not making a strong argument for Apple abusing it's position.
Sweeney Turdd