Epic Games is suing Apple following the removal of Epic’s hit free video game Fortnite from the App Store, but how much money is the lawsuit worth?
2020 was already a weird year and it’s got just even weirder with the makers of Fortnite suing one of the biggest companies in the world.
Epic Games, the creators of Fortnite, are suing Apple after the company removed the video game from their App Store.
A legal document has been submitted to a District Court in the United States which states that: “Apple imposes unreasonable and unlawful restraints to completely monopolize both markets and prevent software developers from reaching the over one billion users.”
However, this begs the question, how much money is this lawsuit between Epic Games and Apple actually worth?
How much money is Epic Games suing Apple for?
- Epic Games are not seeking monetary damage for the removal of Fortnite from the App Store but states that the cost of the controversy exceeds $75, 000.
According to the legal document presented to the US District Court for the Northern District of California, Epic “does not seek monetary damages” in response to the removal of Fortnite from Apples App Store.
However, the document also states that the “amount in controversy exceeds $75, 000.”
Could there be a monetary charge in the future?
- Whilst there is a possibility that a larger monetary cost could be involved at a later stage, it is highly unlikely at this time in the case.
Considering the scale of both companies involved, I imagine that the most expensive cost in the lawsuit at this time would be legal expenses.
However, at such an early point in proceedings, it is unclear as to if there will be another monetary damages or charges as a result of this lawsuit.
How much revenue could this cost?
- For Epic Games, very little revenue would be lost, but it could be a very different case for Apple.
Fortnite is a free title, with Epic making their money through paid cosmetic skins – meaning this is an issue of accessibility and distribution for them, rather than a direct cost to their revenue.
However, according to Forbes, “at stake is billions of dollars in revenue for Apple. And potential billions for Google too.”
The App Store facilitated more than $500 billion in revenue in 2019, with $106 billion being through digital services that Apple can potentially charge a 15-30% fee for (this is what the initial complaints from Epic were about before yesterday’s removal).
At this stage, it is unclear what the extent of this lawsuit will be and how much impact it could have on the revenue streams of online platforms such as the App Store long-term.