The Gauntlet Has Been Thrown Down

The phrase ‘Big Tech’ has seemingly become the buzzword of 2021, with almost all reputable news sources reporting some incident which has involved these giants this year, and it is only the 18th of January. The phrase ‘Big Tech’ has come to encapsulate the almost omnipresent influence that the Big Five (Amazon, Apple, Facebook, Google & Twitter) have had on our lives. Once upon a time, I might have refined that statement to simply put our digital lives; however, these companies have now diversified to such an extent that even when we ‘un-plug’, we are still given a constant reminder of their influence.

But, as the article will go on to suggest; have the consumers had enough of these omnipresent companies dictating so much of their lives? Although there have been antitrust investigations from the Department of Justice, Federal Trade Commission and the European Commission in the past, the consequences of these have been minor in rebuking the influence that ‘Big Tech’ have on our privacy, free speech & censorship, market power, national security and law enforcement. Yet, coming off the back of a relatively revolutionary 2020, which saw amongst other global civil demonstrations, the Hong Kong Protests, Yellow Vest Protests, BLM movement, End SARS and the Black Friday Amazon protest.[1] 2021 seems to have fostered a continuation for this appetite of change, and the public’s attention has been moved to include the Big Five.

Whilst the whole topic of ‘Big Tech’ and its influence could be explored in no less than a thesis. Especially around the ideas of freedom of speech, a topic propelled to the front of public interest after President Trump was banned from Twitter and Facebook;[2] and the idea of data protection, as WhatsApp have introduced new Privacy Laws that reserve the right to share data it collects about you with the broader Facebook network.[3] I will explore how the current winds of change have influence specifically within the world of App Development.

Epic Games Vs Apple & Google

As you read this, Epic Games is currently in the process of expanding its lawsuit against Apple and Google, bringing it to the attention of the UK Competition Appeal Tribunal.[4] The centrepiece for their case against Apple and Google rests around Epic Games belief that these two companies have abused their ‘’dominant position’’ in the market.[5] Their grievances towards Apple and Google can be summarised in three simple points;[6]

• unfairly restricting competition from alternative app stores
• stopping developers using their own payment-processing services for purchases
• charging "unfair prices for the distribution of apps"

The crux of this lawsuit emerged over the profits that Epic Games were losing as a result of the fees that Google and Apple charge for hosting a paid app on their stores. Essentially, any app that accrues income on these stores is charged a standardised 30% of that income. This fee is still the same with a subscription model, however it lowers to 15% after 12 months of subscription. On top of this, Apple and Google have an exclusivity clause which means that developers cannot bypass these fees by encouraging payment through their own website at a discounted rate.

If you take a swing at the King...

However, in August of 2020, Epic Games threw the gauntlet down and decided to ignore this policy by encouraging Fortnite users to buy virtual currency at a lower price, direct from Epic. Consequentially, both app stores removed Fortnite from their services, and Apple terminated Epic Games' developer account.[7] Such a move by both App stores against such a popular product really cemented the aforementioned policy in stone; and stood as a marked reminder that this would happen to any other app developer who flirted with the notion of moving away from their standardised terms of business.

But, by dramatically usurping Fortnite from all smartphone servers, Apple and Google have only played into Epic Game’s argument and showcased themselves as having a market domination within the App Stores, something that would seemingly go against monopolisation laws (antitrust laws). Whilst it is true that there are other App stores to download from, Samsung, Huawei and Amazon all have their own independent App stores. Android is technically owned by Google and therefore Google Play is the predominate store which receives the overwhelming amount of traffic. The alternative to Android is the product suite of Apple which makes up the 13.5% of global market share (the rest). Thus, by being removed from these platforms the opportunity that Epic Game’s had to promote its product was, if not completely restricted, drastically restricted.  

This manoeuvre may have gone under the proverbial radar, had it not adversely affected some 129,000,000 users. So, in an attempt to make a brash statement that no-one is above their terms of business; Apple and Google may have forgotten the golden rule of business; which is not to alienate your customer base. This lawsuit has now manifested itself into a very important case for a multitude of different stakeholders. Naturally, the users want to see their game brought back onto smartphones. Apple and Google will look to quash this and maintain their omnipresent status without out being labelled as so. Epic Games would like their product reinstated in order to maintain a strong revenue stream. But also for us, as developers, we have a vested interest because Apple and Google are being taken to court and the outcome is something that could radically change our income stream.

Epic Game’s is simply asking for three things,[8] which if granted would extend to all developers.

·      Reinstate Epic Games' software and accounts

·      Let developers use their own payment-processing systems in their apps

·      Let consumers download Epic Games' software outside of the App Store or Google Play

Should these demands come to fruition then this will give us, the developers, the legal precedent and therefore subsequent mandate to bypass the 30% hosting fees that Apple and Google charge. It is worth mentioning that as developers, we do see the value that Apple and Google provide, namely the implementation, the accounting and the opportunity through user traffic from their sites. But, it just seems a little steep to demand nearly 1/3 of the revenue generated, when for the most part, your average developer is not making a substantial living from their ventures.

Conclusion

Whilst it is not clear which side the coin will land on, even by bringing about this lawsuit, it is momentous in so far that, ‘Big-Tech’ is being shown that it may not be as omnipotent as it appears. Regardless of the result in court, the public trial has already begun, and this can sometimes be more damning than the actual verdict. For a society that has suffered so much economically on the back of a global pandemic, seeing a conglomerate take advantage of App developers may not sit well with Google and Apple’s customers.

Whilst no-one is suggesting that there will be an alternative store in the near future to rival Google and Apples monopoly. What we can hope to see is through enough public guilt, regardless of the outcome from the lawsuit, a reduction in the 30% fee that Google and Apple maintain. A reduction which would allow the individuals a much more significant piece of the pie from their work, that would have an almost immaterial effect on the conglomerate’s revenue.

[1] https://mashable.com/article/ten-protest-moments-2020/?europe=true

[2] https://www.telegraph.co.uk/politics/2021/01/16/facebook-twitter-youtube-going-ban-donald-trump-next/

[3] https://www.bloomberg.com/news/articles/2021-01-11/why-whatsapp-s-privacy-rules-sparked-moves-to-rivals-quicktake

[4] https://www.bbc.co.uk/news/technology-55678496

[5] https://mobilesyrup.com/2021/01/15/epic-fortnite-legal-dispute-apple-google-uk/

[6] https://www.bbc.co.uk/news/technology-55678496

[7] https://www.bbc.co.uk/news/technology-55678496

[8] https://www.bbc.co.uk/news/technology-55678496