OAKLAND, Calif. — Cosmetics. Digital dances called “emotes” A currency called V-Bucks. Virtual concerts. Fortnite, the popular gaming platform, is more than just a game. It is a “metaverse,” full of virtual life, said Tim Sweeney, chief executive of Epic Games, the company that created Fortnite.
And Apple, he argued in federal court on Monday, wants an unfair cut of the money to be made in the Fortnite metaverse.
Mr. Sweeney offered a granular explanation of Fortnite to paint an expansive portrait of his company’s world on the first day of what is expected to be a three-week trial, pitting Epic against Apple in a fight over Apple’s App Store fees and other rules that could reshape the $100 billion app economy.
Epic sued Apple in August, arguing that Apple is unfairly leaning on its control of the App Store to extract an unfair cut of the money Epic makes from selling digital goods inside Fortnite.
antitrust claims by state and federal governments in the United States and Europe. Apple is also battling two potential class-action lawsuits from consumers and developers over its App Store fees.
Fortnite, Mr. Sweeney said, “is a phenomenon that transcends gaming,” he said. “Our aim of Fortnite is to build something like a metaverse from science fiction.”
Metaverse? A court reporter needed clarification. It’s a virtual world for socializing and entertainment, Mr. Sweeney said.
The legal arguments in the case center on the boundaries of the market the two companies are fighting over. Apple’s lawyers focused their opening statements on gaming, arguing that people can get access to Fortnite in many places other than the App Store, like gaming consoles.
an interview last year, is “completely unprecedented in human history.”
But Mr. Sweeney was so soft-spoken in his testimony on Monday, a court reporter had to repeatedly ask for clarification on gaming and technology terms. He wore a suit, ditching his usual, T-shirt and cargo shorts. He also wore a clear face shield.
In his testimony, Mr. Sweeney explained Epic’s decision to pursue the lawsuit. “I wanted to show the world through actions exactly what the ramifications of Apple’s policy were,” he said.
In a cross-examination, Richard Doren of Gibson, Dunn & Crutcher hammered at Mr. Sweeney with a rapid series of yes-or-no questions to make the point that Epic also publishes Fortnite on other platforms, like gaming consoles — and that Epic is not complaining about them.
But Mr. Sweeney countered that the gaming consoles, which typically lose money on the hardware they sell and make it up on fees, have different business models from Apple’s and Google’s app stores, which are highly profitable.