Fortnite Returns to Apple After Epic 5-Year Battle: 20% Rewards vs 27% Commission

Epic Games is returning Fortnite to Apple's App Store after a five-year legal battle. Following a Supreme Court ruling allowing alternative payment methods, Epic will offer 20% rewards for direct purchases, while Apple implements a 27% commission on external payment systems.
Fortnite Returns to Apple After Epic 5-Year Battle: 20% Rewards vs 27% Commission
Written by Ryan Gibson

Epic Games Returns to App Store Amid Landmark Shift in Digital Marketplace

In a watershed moment for the digital economy, Epic Games is poised to bring its blockbuster title Fortnite back to Apple’s App Store after a nearly five-year absence, marking a significant turning point in one of tech’s most contentious legal battles.

The game developer has submitted Fortnite to Apple’s U.S. App Store following a Supreme Court decision that upheld a ruling requiring Apple to allow developers to direct users to alternative payment methods outside its ecosystem, according to Engadget.

“Epic has submitted Fortnite to the App Store in the US,” confirmed Epic Games CEO Tim Sweeney in a statement reported by Sports Illustrated. “We’re working with Apple to get it live soon.” This return comes after Epic initiated a high-profile legal battle in 2020 when Apple removed Fortnite from its platforms after Epic implemented a direct payment system that bypassed Apple’s 30% commission.

The return is accompanied by an aggressive new strategy from Epic. The company announced it will boost “Epic Rewards” to 20% for purchases made through its own payment system in Fortnite, Rocket League, and Fall Guys on multiple platforms, as reported by Fortnite Tracker. This significant increase from the previous 5% rate represents a clear attempt to incentivize users to bypass Apple’s payment system.

“Here is a preview of the two purchasing options Epic will be launching with Fortnite’s return to the App Store in the US, offering players the choice of Epic’s payment system (with 20% back in Epic Rewards) and Apple’s in-app purchase,” Epic stated according to FortniteTracker.

The move follows the resolution of a protracted legal dispute that cost Epic Games over $100 million in legal fees, according to reports. The Supreme Court’s decision not to hear Apple’s appeal effectively upheld a lower court ruling that Apple’s anti-steering provisions violated California’s Unfair Competition Law.

In response to the court ruling, Apple has implemented a new 27% commission for developers who use external payment systems, as reported by Yahoo Finance. This represents a modest 3% discount from its standard 30% fee, a move critics argue doesn’t meaningfully improve competition.

The potential impact of Fortnite’s return to iOS could be substantial. According to CNBC, mobile platforms accounted for approximately 10% of Fortnite’s revenue and playtime before its removal in 2020. “Looking back at 2020, in the peak of our iOS timeframe, 10% of our revenue and a little bit less than 10% of our playtime was on mobile devices, versus PC and console,” Sweeney noted in comments reported by LinkedIn.

Industry observers suggest the game’s return could significantly boost its user base, potentially putting it in competition with platforms like Roblox, which derives the majority of its playtime from mobile devices.

The Epic vs. Apple saga represents a pivotal shift in the digital marketplace landscape, with implications extending far beyond gaming. As developers gain more freedom to implement alternative payment systems, the entire app economy faces a potential restructuring that could alter revenue models and user experiences across digital platforms.

For consumers, the immediate benefit appears in the form of potential savings and rewards programs as developers compete more directly for their business without platform intermediaries taking such substantial cuts of every transaction.

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