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Fortnite (Video Game)

In Antitrust Trial, Tim Cook Argues Apple Doesn’t Hurt App Makers

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At another point, the Apple lawyer questioned Mr. Cook on Apple’s competition in the app market. Mr. Cook said he believed digital marketplaces that distributed games, including Epic’s and those of the gaming-console makers like Sony and Microsoft, were direct competitors to the App Store. Though, he admitted, “I’m not a gamer.”

Throughout the trial, Judge Gonzalez Rogers frequently sought clarification on technical jargon and pressed witnesses further on their answers. She asked about the difference in business models for Fortnite, Epic’s most popular game, and games like Roblox and Minecraft from other companies, and asked how Apple’s security compared with that of third-party companies.

Earlier this week, she said she had not seen much evidence for one of Epic’s nine claims that accuses Apple of violating the essential facilities doctrine, which bans business from denying other businesses access to certain markets. Apple quickly filed a motion to have the essential facilities claim dismissed.

The biggest challenge in deciding the case may be defining the market that Epic and Apple are fighting over. Apple argued that Epic has many options for game distribution including web browsers, gaming consoles and personal computers. Many of those platforms charge a commission similar to that of the App Store. If gaming is the market, Apple argued, then there are many competitors — like Microsoft, Sony and Nintendo — and Apple cannot have a monopoly.

Epic responded that Fortnite is more than a game. It is something the company calls the metaverse — an infinite digital universe with activities, social media and even concerts. The argument led to a lengthy and detailed debate over what a game actually is. The point? This case, Epic’s lawyers argued, is about all mobile apps, which can only reach the iPhone’s one billion users through Apple’s App Store.

Judge Gonzalez Rogers expressed frustration over the market semantics. “One side will say it’s black, the other says it’s white — typically it’s somewhere in the gray,” she said last week.

Apple argued that its fees were necessary to maintain security for its customers. The company’s lawyers said the App Store’s restrictions protected against malware and data breaches for iPhone users.

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Filed Under: BUSINESS Tagged With: Apple, Apple Inc, Apps, Business, Computer and Video Games, Computers and the Internet, Cook, Timothy D, Fortnite (Video Game), Games, iPhone, Media, Microsoft, mobile, Mobile Applications, Social Media, Suits and Litigation (Civil), Sweeney, Tim (1970- ), Web Browsers

Epic Games, the maker of Fortnite, raises $1 billion in a funding round.

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Epic Games, the video game developer that produced the hit game Fortnite, said Tuesday that it had raised $1 billion in funding, valuing the company at $28.7 billion.

Sony, the creator of the PlayStation game console, invested $200 million, Epic said, and Appaloosa Management, Baillie Gifford and Fidelity Management were also among the investors.

Epic’s most recent funding round came last summer, when it raised $1.78 billion to value the company at $17.3 billion. Sony invested $250 million at the time.

Epic, based in Cary, N.C., was founded in 1991 by Tim Sweeney, the company’s chief executive. It found success with Unreal Engine, a platform other developers could use to create games, and with the Gears of War video game franchise in the mid-2000s. Tencent, the Chinese internet giant, owns a 40 percent stake in the company.

most popular video games, and spawned a new generation of livestreaming. It made gamers who broadcast their play of Fortnite, like Tyler Blevins — known as Ninja — into wealthy celebrities.

Evan Van Zelfden, the managing director for Games One, an advisory firm, said Epic’s latest funding round was another indicator of the success the gaming industry had seen since the pandemic forced people indoors and glued them to their screens.

He speculated that the eventual next stage for Epic could be an initial public offering, a move that would “break the market.”

Epic’s funding round comes as the company prepares to take Apple to court next month in a dispute over the App Store commission that Apple collects from app developers, including on purchases made within Fortnite when users are playing on their iPhones.

Last August, Epic encouraged Fortnite players to pay the company directly rather than go through Apple or Google, prompting the two companies to boot Fortnite from their respective app stores. Epic responded with lawsuits.

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Filed Under: BUSINESS Tagged With: Apple, Celebrities, Computer and Video Games, Epic Games, Fortnite (Video Game), Games, Google, Internet, Sony Corporation, Venture Capital

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