Fortnite's maker sues Apple, Google after app store ban

Yahoo Finance's Alexis Keenan joins Kristin Myers to discuss why Fortnite creator Epic Games decided to sue Apple and Google after the tech giants removed the popular game from their app stores.

Video Transcript

KRISTIN MYERS: Well, there's is a new movement, #FreeFortnite, after the game was banned from both the Google and Apple app stores. And "Fortnite" decided to troll Apple in this spoof of its iconic 1984 commercial. Take a look.

- In exchange, we have taken our tribute, our promise, out control. This power is ours and ours alone. We shall prevail.

So for more on this lawsuit, we're joined now by Yahoo Finance's Alexis Keenan. Hey, Alexis.

ALEXIS KEENAN: Hey, Kristin. So yes, a well-timed, I guess I'll say, for this lawsuit, certainly taking public sentiment into account. Also interesting to note that 40% of Epic, which owns "Fortnite," is owned by the Chinese behemoth Tencent, also owner of WeChat, which, of course, is the subject of executive order, at least one of them, banning American companies from transacting with WeChat. The terms of that still unclear.

But let's talk about this lawsuit a little bit. So Epic Games bringing this against both Apple and Google, saying that they are not pleased that both companies have decided to kick out the mobile version of the "Fortnite" game out of their app stores. They're booted, of course, because Epic launched its own way for players to make a direct purchase of their in-game purchases is what they're called.

And what that does is it sidesteps the 30% charge, the fee that Google and Apple assess for these types of in-game purchases. And that is a violation of their terms of service. So what does Epic want? They want an injunction, this lawsuit or these lawsuits say.

They want the app put back into the app stores. And just to give you an idea of the amount of money that this game generates. Just from March 2018 until the present, it generated $360 million for Apple in revenues. And these claims, though, they're based on anti-trust laws. So what the company is saying is that the fees in the Google and App-- App stores, they amount to what is an illegal monopoly.

But whether they're winning claims, not necessarily a slam dunk here. Epic is going to have to prove that the App Store fees, these restraints are what they're called in antitrust law, they're going to have to show that it harms consumers, not just Epic. And also they're going to have to show that there's harm to competition and not just lost revenues for the company. So a lot to think about here, but certainly this is a well-timed lawsuit by this company.

KRISTIN MYERS: Yeah, absolutely, especially considering that tech companies are actually under congressional scrutiny right now over some of those very same issues, Apple especially, in particular, in reference to its App store. So unclear. Perhaps "Fortnite" might get a boost in their lawsuit from some of those claims. Thanks so much, Alexis.

ALEXIS KEENAN: You're welcome.