The battle between Apple Inc AAPL and Epic Games has escalated to new heights after the iPhone manufacturer slapped a counter-lawsuit against the game developer, according to the Wall Street Journal.
Both of these technology companies are locked in a dispute over revenues generated from in-app purchases. The tussle began after Apple and Alphabet Inc GOOG GOOGL decided to remove its popular online game “Fortnite” from their respective play stores in August.
What Happened: Apple has filed an opposing lawsuit against Epic Games seeking punitive damages, according to the Journal.
Apple is also seeking to put an end to — what it said were — the game developer’s unfair business practices.
“Epic’s lawsuit is nothing more than a basic disagreement over money,” it said. The hearing is expected to be held on Sept. 28.
“Although Epic portrays itself as a modern corporate Robin Hood, in reality it is a multi-billion dollar enterprise that simply wants to pay nothing for the tremendous value it derives from the App Store,” Apple has said in the lawsuit, the Journal reported.
Why It Matters: Apple and Google took offense to Epic Games’ newly rolled out feature that allowed the game developer to collect 100% of in-app purchases. Typically, Apple and Google charge 30% for digital transactions made through the apps.
Epic Games secured interim relief against Apple's decision to block its access to the latter's developer tools that would hamper the operations of its Unreal Engine, but Fortnite remains off Apple's App Store.
The market for mobile apps worldwide generates approximately $120 billion a year, as per the Journal.
Epic games is not the only app developer with a grudge. The trillion-dollar Microsoft Corporation MSFT and social media giant Facebook Inc. (NASDAQ: FB) have also criticized Apple’s app store policies that limit the entry of cloud gaming apps.
Price Movement: Apple stock was down 6.73% at the end of the trading session on Tuesday at $112.82.
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