Epic Games Presents Legal Expenses in Ongoing App Store Dispute with Apple

Epic Games has achieved a significant milestone in its protracted legal battle with Apple regarding the regulation of its App Store. The company has disclosed that its legal and court expenses related to the ongoing conflict, which began in 2020, have reached approximately $100 million. However, this figure does not account for the substantial revenue losses incurred due to the restrictions imposed by Apple.

According to Epic's CEO, the total cost of the legal proceedings, including all associated losses, surpasses $1 billion. Sweeney estimates that the revenue generated from 'Fortnite' alone during its time on the App Store amounted to around $300 million over two years, a period during which the game was exceptionally popular among gamers.

Despite the financial burdens associated with the lawsuit, Sweeney expressed confidence in the value of the legal fight, stating that it has been worth the investment. He emphasized that the support from investors remains strong, as they believe in Epic's vision for the future, which includes the ambition to develop an expansive metaverse and transform 'Fortnite' into a platform for billions of players. He also noted that Apple aims to control revenue streams to maximize its profits, a tactic that Epic's investors are aware of, thus encouraging them to support the ongoing legal struggle.

Epic Games has also been actively working on establishing its own App Store, which is designed to offer developers a more favorable alternative. In the European market, Epic has launched its own Epic Games Store, which has reportedly achieved around 30 million installations to date. Following its recent legal victory in the U.S., the company has introduced a web-based shopping platform for developers, allowing those with annual revenues below $1 million to use the service free of charge. For revenues exceeding this threshold, a commission fee of 12% is imposed, in contrast to Apple's fee structure, which starts at 15% for earnings under $1 million and can rise to 30% for higher revenues.

Through these initiatives, Epic aims to position itself as a champion for developers, advocating for fairer practices in the industry. Sweeney stated that Epic is one of the few organizations with the capability to genuinely advocate for the interests of all developers, reinforcing his commitment to the cause.