Fortnite: Epic’s CEO claims that Google is anti-competitive

It’s easy to forget, amidst the chaos of Fortnite being removed from the iOS App Store, that Fortnite was also pulled from the largest Android market as well, the Google Play Store. Google has been the target of a much smaller attack than Apple, and has been suspiciously quiet in the court of public opinion.

Fortnite CEO Tim Sweeney’s argument against Google

When Fortnite introduced ways to bypass various app stores with direct payments instead, it’s important to note that Google was as much a target of that change as Apple was. The situation with Google, however, is very different.

With Apple, apps simply can not be downloaded or installed on iOS devices without first coming to an agreement with Apple, an agreement which usually stipulated signing over 30% of your revenue to the tech giant.

Google runs a very similar stipulation, though this is not because of an iron-grip rule over all Android devices, but simply due to its place as the market leader. Android, unlike iOS, is an open platform which allows anyone to design and develop for it.

This is why, even with Fortnite being banned from the Google Play store, Android players can still download and install Fortnite through Epic’s own personal website. Nevertheless, the argument against Google is not that Android is a closed market, but that Google abuses its power as a market leader.

Yeah this was definitely Tim Sweeney taking shots at Apple and Google pic.twitter.com/4exdjgFrQn

— Ƭ Ө M Λ Ƭ (@ThiccTomatoboi) August 13, 2020

So, of the sales of an app in the UK: 30% goes to the store, 22% to tax, and 48% to the developer - making creators minority participants in the own work. Everyone is paying Apple’s taxes except Apple! https://t.co/2papsFJ3tv

— Tim Sweeney (@TimSweeneyEpic) September 2, 2020

The App Store doesn’t store Fortnite. Google Play doesn’t play Fortnite. This the broken state of mobile platforms in 2020. pic.twitter.com/ITHIvSE3DM

— Tim Sweeney (@TimSweeneyEpic) August 17, 2020

Tim Sweeney compares Google’s 30% cut to credit card companies

Tim Sweeney’s argument against Google and Apple is that the cut they take is much higher than could ever be considered reasonable. He considers their “services” as little more than money handling, in much the same way as PayPal, Visa, or MasterCard. The only difference is that each of those companies charge between 2-4%, a much more manageable, and reasonable, fee.

Additionally, customers and producers have options when dealing with all of those. If MasterCard were to take advantage of companies like Epic, Epic could simply refuse to accept MasterCard while incentivizing the use of PayPal or Visa instead. A competitive market means no one benefits from getting too greedy.

For Google to be able to take as much as 30% of the revenue generated by Fortnite for Android devices, Sweeney argues, then Google must be taking advantage of a non-competitive environment.

The distinction between unfair and illegal

Perhaps the biggest hurdle for Epic Games to overcome in this particular Fortnite battle is whether or not Google’s business practices rise to the point of being illegal. If Google is a market leader in a competitive environment, and for whatever reason can remain so while abusing that power, then that could be considered a failure of the market and not something for which Google is responsible.

Epic could even, theoretically, develop and operate their own Android App Store to compete with Google, in much the same way as the Epic Games Store competes with Steam on PC. The same can’t be said about Apple.