Epic Games: Nineteen Eighty-Fortnite

In the midst of intensifying public and political attention towards the market power of big technology, Epic Games in 2020 challenged the status quo that has existed for years in the Apple iOS and Google Android mobile application marketplaces and payment systems. Apple and Google removed Fortnite from their app stores after its developer Epic Games intentionally introduced an unauthorized payment system. Epic Games sued Apple and Google, alleging their monopolistic control over the distribution of apps and the unreasonable commission rate for in-app purchases. Epic rallied other application developers and its 350 million Fortnite users in its fight.
The case begins with a brief history of Epic Games and some background on the antitrust issues around mobile platforms. Then, the case details the many actions taken by each side in the ensuing legal and public relations battle. The case provides context on future technologies, like cloud gaming, that will hinge on the issues already being fought over in 2020. The case challenges students to think about strategy for both the smaller complementor and the larger incumbent platform, and how to challenge and maintain market power respectively, in the context of looking forward to the future.