Apple attack Fornite war claims Epic damages for breaching its trade agreements!
Apple goes on the attack.
All purchases made within a mobile app include a 30% commission that goes to the App Store where you downloaded the program. In case you want to subscribe to a streaming video service from an iPhone, 30% of what you pay is taken by Apple.
This is what several companies have been discussing to the owners of the most popular app ecosystems —Apple and Google-for years. But the battle escalated this August after Fortnite developer Epic Games took a step further.
The creators of the popular online game surprisingly introduced a payment method with a 30% discount. It was a direct payment to Epic, skipping Apple and Google as intermediaries. As expected, App Stores removed Fortnite from their catalogs.
Apple attack Fornite war claims Epic damages
Epic sued Apple and Google and launched an unusual creative campaign against tech multinationals.
Now it's Apple's turn.
The Cupertino company has filed another lawsuit this week, this against Epic, which seeks damages for having surprisingly introduced a direct payment method to jump them as intermediaries, thus violating the terms of Service by which Apple agrees to offer Fortnite to its users in its application catalog.
Although there is already an open procedure by which precautionary measures have already been taken —Fortnite will not return to the Apple App Store, but Epic will not lose for now the advantages of having a developer profile in the iPhone or Mac ecosystem -, Apple counterattacks with this second lawsuit.
A lawsuit that you can consult here and with which the firm of Tim Cook reveals many things. And it's not cut by assuring that Fortnite introduced a "Trojan horse" in an update in early August, which allowed the developer, Epic, to introduce a non-middleman payment method in the middle of last month.
From the legal writing, echoed by media such as TechCrunch, several interesting phrases are extracted. One is, for example, Apple's assertion of Epic: "while Epic portrays itself as a modern corporate Robin Hood, it's actually a billion-dollar company that just doesn't want to pay anything in exchange for the tremendous value it draws from the App Store."
In the letter, Apple alleges that Sweeney emailed Apple on June 30 asking tech for a letter waiving fees for its services. Evidently, Apple refused.
"In view of his previous experience, the CEO of Epic sent an email to Apple on July 17 asking for a format in the App Store by which 'the developers can reach their customers and do business with them directly': in other words, the precise way in which millions of players Fortnite have been exposed in Android malware and threats to your cyber security."
In the lawsuit, Apple also recalls that Fortnite has come to benefit from "more than 400 Apple'S own APIs and development frameworks, as well as five different versions of its own development kit." "With Apple's support, in the space of two years Fortnite became an incredibly successful iOS app, enjoying nearly 130 million downloads in 174 countries."
At the moment it is too early to determine what will happen or what course will follow the two legal processes that open between Apple and Epic. The front, though, seems clear: if Epic manages to prove that Apple's 30% commissions for apps using its ecosystem are abusive and monopoly, the breaches of the terms of Service for which Fortnite included a direct payment option would be justified.
To date, Apple had threatened to withdraw Epic's developer license, which would also put third parties at risk, as many create video games using Unreal Engine, a graphics engine they own.
However, early precautionary measures vetoed that possibility and also the possibility of Fortnite suddenly returning to the App Store. There are months left for the entire litigation to be resolved, but this legal battle could change course and dynamics in the mobile app market.
End of Apple attack Fornite war claims Epic damages
"One good is 100 times better than the others": Netflix founder explains why he pays so high wages to his employees
Netflix keeps growing. In fact, the company has recorded historic growth levels due to the pandemic and, from January to June, got the same subscribers as it did throughout the past year.
And salaries are in line with that growth: the salary of a senior software engineer can reach 418,406 euros. But it hasn't always been that way.
In the early years, they grew so fast that they needed many software engineers. They focused on getting the brightest, according to their business philosophy: greater density of talent to succeed.
"I had 2 options: hire between 10 and 25 engineers or a single 'rock star' and pay him a lot more than the rest if necessary. As the years go by, I've seen that that person is only worth 10 times more, if not 100," according to Netflix co-CEO Reed Hastings in an article for CNBC.
The rock-star principle is based on a famous studio that took place in a basement in Santa Monica. Nine programmers entered a room with dozens of computers. Each was given an envelope with a series of coding and debugging tasks that they would have to complete in the best possible way within the next 2 hours.
The researchers thought that the former would perform 2 or 3 times better than the rest, but it was 20 times faster in coding, 25 times in debugging, and 10 times in running programs than those with the worst marks.
"I started thinking about whether this model could be applied outside the software industry. The value of a rock-star engineer isn't just about programming: he's incredibly creative and can see conceptual patterns that others can't," Reeds explains on CNBC.
Then, the company decided to divide the positions into operational and creative: the former would be paid half of what was offered in the market and for the others decided to hire a single person and pay very well.
"That's how we've hired most of Netflix's employees since then. This approach has proven to be very successful, " says the co-CEO. "When teams are made up of exceptionally performing employees, bosses do better, employees do better and the whole team works better and faster."