Legal and PR Case Study: Apple v. Epic Games
According to this article, Epic Games is planning to bring Apple into a lawsuit after Apple banned the company’s Fortnite app from the App Store. It is unclear what kind of lawsuit this will be. Given that the article quotes a Spotify spokesperson saying, "Apple's unfair practices have disadvantaged competitors and deprived consumers for far too long," it may be related to antitrust. I think this is especially plausible because it seems the claim is that Apple has too much of a monopoly. As I am not well versed in antitrust law yet, but I suspect that this may be brought under the Federal Trade Commission Act, which governs issues related to unfair methods of competition. However, it could be brought under the Sherman Act as well as the Sherman Act governs claims of monopolies.
On the other hand, this is a major PR move. Epic Games changed their pay model for the Fortnite App to circumvent Apple’s terms and conditions, essentially taking away Apple’s cut of the pie, which caused Apple to kick the app off of its App Store. The PR and marketing around this move is actually quite interesting because it’s like a battle reminiscent of David and Goliath. It pulls on a story about the underdog being constantly squashed until they rise above and tackles a giant challenge. This is the kind of thing people can rally behind. So, it was quite wise for Epic Games to frame itself as trying to tackle the evil. In this way, Epic Games doesn’t come across as a whiny or defiant child, but the little guy that’s tired of being shoved around or control.
Can Apple turn itself around? Absolutely! I think Apple will and should enter negotiations with Epic Games because it may become a nasty battle if this plays out in court. However, Epic Games may want to set a precedent and forgo negotiations. Then, Apple will have to make a hard decision for its public image. If they win the lawsuit, they look like jerks, but if they lose the lawsuit, they may have to go home with their tail between their legs. Neither is a pretty public image for the company. So, they will really have to do major cleanup given whatever the outcome is of this lawsuit.
Ultimately, it’s possible that Epic Games will prevail. However, the future is always uncertain with these things. It will be interesting how this will play out in the court of law and the court of public opinion.
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