Say you're desperate and need water in a crisis, and I offer you some, but only if you sign an agreement which gives you water, but says I can punch you in the face whenever you say something I don't like. Say you say something I don't like, and I punch you in the face. Did I just retaliate? Or did the contract make it not retaliation?
Apple is clearly retaliating, and I think it's gonna cost Apple way more than it realizes. Removing Epic games is one thing. This is a whole different can of worms.
Epic said "Okay, we agree.", then broke the terms they agreed to, so Apple is closing their account.
This seems like pretty straightforward break of the terms of use to me.
The reasonable way Epic could have proceeded is to have submitted an update with the "third party store" stuff added, gotten it rejected, and then rolled it back while suing Apple.
Instead, Epic pulled a publicity stunt by sneaking it in, specifically so that Apple and Google would remove their app, and then suing, in an attempt to make themselves look like the good guy (which, depending on your perspective, might be true).
It doesn't feel any more mature than goading someone into throwing a punch at you so you can claim to be "defending yourself" when really you were just being a douche and you got what you asked for.
Like it or not IOS has 2/3rds of revenue in the mobile apps market and how many businesses can afford to leave 46%(0.7*0.66), of their revenue on the table?
It's pretty obvious that epic has goaded apple into punching them. But there's plenty of people who feel it's the equivalent of apple saying you have to give me your lunch money every 3 days or I'll beat you and epic making sure the teacher is watching when they maliciously don't hand over their lunch money (I'll add I'm not arguing that the schools football team wouldn't have much fewer wins without apple, to stretch the metaphor to breaking).
Still, illegal, and that's the question being litigated here.
You can stick anything you want in an EULA but it's not automatically enforceable. If Apple started adding a stipulation that your first-born would be a slave to Tim making iPhones for life, that wouldn't be enforceable. In general you can't sue until there's damages -- so you couldn't sue just for that term existing in the EULA. You wait for your first-born to enter slavery, then sue.
And closing the account is retaliation.
I think people are giving different meanings to words, with moral judgment tied to some of these meanings, and these meanings are causing confusion.
Let's take the word discriminate. Is it wrong if I discriminate when hiring someone? Many will say yes, but because they are thinking of specific forms of discrimination such as based on race or gender. But if I choose to not hire someone because of a lack of programming skill, that is still discrimination, but isn't wrong.
So back on topic. The action of closing the account is retaliation. So the question becomes is it wrong, but to answer that clearly depends upon if Apple's terms are right to begin with and if it is possible to offer someone terms that are wrong to uphold.
What good is a terms of use if that use cannot be rescinded upon breaching the terms?
And if they succeed, then the terms will be worth nothing, and Apple would have to explain why they go around signing illegal agreements that for example allow them to punch people in the face.
If Epic fails, then yeah, the legal terms say for example that the punishment for what Epic did is a punch in the face, and Apple is just enforcing that legally.
What law would you claim disallows limiting payment systems?
I definitely remember cases from the early years of the App Store where people would deliberately sneak e.g. tethering apps into the App Store in the guise of a game, and usually came to public attention when their account was banned.
Because Epic knows the damages in this real situation and everyone agrees what they are.
This is the same for end users, but we don't have the power to start a lawsuit against Apple.
However, a lot of the text around those contracts you'll find centers around a powerful entity like Apple adhering the contract to a nearly-powerless entity, like an individual consumer. I'm not up enough on the details of what case law has been created to know what happen to a contract of adhesion legally when the signer (Epic in this case) is not powerless themselves. Since Epic is at least nominally capable of negotiating their own contract with Apple on roughly equal terms, the contract may be treated more like a normal contract.
My uninformed, personal guess is that Epic isn't conceptualizing this as a legal fight; I bet they think of this as a PR fight where the lawsuit is part of their PR narrative trying to get Apple to back down on their take. As a pure legal fight this doesn't strike me as a strong hand, but as a part of a larger PR fight... who knows. They may be trying to create a position to negotiate a settlement from.
(If this is correct, and I were Epic, I'd be looking to partner with other very large and peeved developers, and create a de facto app producer strike... but maybe they think they have enough market clout to go it alone.)
This would actually be a violation of the antitrust laws. And it'd be a straightforward Section 1 Sherman Act cartel case.
IDK. The jaded part of me asks whether Tencent pulled some strings here; a US company with Mindshare (Epic) is a better looking actor than the swaths of shovelware publishers that would stand to benefit from the long-term effects of a victory here.
Just look at what happened to nvidia, for far minor offenses. They were blacklisted from apple’s platforms very thoroughly, and people still mostly side with apple on that one.
HN is unlikely to be an unbiased sample of the general population, along many axes.
Neither Apple nor the PCB manufacturers specified the failing solder balls that Nvidia used. Nvidia made and packaged those chips.
And then Nvidia failed to take responsibility when they failed because it was going to be so expensive.
The exact same set of arguments would follow. The users already own the phones so for the "market to adjust" to such changes would take years.
https://en.wikipedia.org/wiki/Standard_form_contract
> we don't have the power to start a lawsuit against Apple.
Of course you do. You can go to small claims court for a claim of up to ~$5000. Or you can file a class action lawsuit.
Until there is forced arbitration. You're not really going to say I as an individual have any power in the legal system against Apple, right? This is just a bonkers statement.
It is if they have a monopoly on water.
Imagine their terms were manifestly unreasonable. If you want water service you'll have to pay $50,000/year. What would you do? If the answer is that it's reasonable to dig a well or something like that, they haven't got a monopoly. If the answer is to pay the $50,000/year because the only alternative is to die of thirst, there you are.
If there actually was competition between app stores then you could put your app on Google Play and people with iPhones could get it there. People with PlayStations could get it there. They would be the same market so that you could use one app store instead of another to reach the same customers, rather than needing to be in all of them in order for your product to be available to all of your customers.
It's like the water company having a local water monopoly, you're not allowed to dig a well, and your proposed solution is to move out of their service area. Which is not only unreasonable, it doesn't even work if you're the water source because your business is to provide water to customers in every service area.
Which is why in real life, water utilities are considered monopolies and are regulated as such so that they can't impose unreasonable terms on providing water service.
Epic may be smaller than Apple, but they are by no means a "little guy".
Apple uses being a secure device manufacturer for marketing to geeks in US, with a completely different stance in Chine [2]. Do people in China have access to VPN apps in Apple's app store? "Today, Epic Games ... violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users." Safety first, unless you're a citizen of authoritarian regime where Apple's profits justify to look elsewhere.
[1] https://venturebeat.com/2014/05/23/4-tech-companies-are-payi...
[2] https://www.zdnet.com/article/china-has-apple-by-the-iphones...
Can you be a bit more concrete? What exactly of what you quoted in section (f) do you think applies to Epic?
And actually on your first part, they broke the rules and their app is off the store. Is Apple’s usual policy that if you do that and you choose not to put the app back up in a compliant form within 30 days then you get permanently banned from developing for all their platforms?
Either Apple is violating the law, any contract terms related to this violation are void as a result, and Apple is illegally retaliating.
Or Apple is not violating the law, and they are generally free to do as they please.
I say "almost" for the same reason I say "generally". It might be the case that if Apple is not violating the law and they wrote the contract badly then they aren't free to do what they want. But no one is arguing that because it's highly unlikely to be the case.
If that were the case, the entire field of contract law wouldn't exist.
This gives the impression that suing them is what led to Apple terminating their relationship, but that isn't the case. Epic could have sued Apple without the theatrics and they'd have been fine. They didn't even need to violate the terms of the developer agreement to bring their antitrust lawsuit, which is largely about the developer agreement.
Epic introduces a new payment system and passes on the savings to the consumer. Thanks to payment system competition, consumers can save 20% when buying the same items. Apple sees this and completely removes Epic's game to protect its own interests.
It's not hard to see how Apple's behaviour is harming consumers.
Without the "theatrics" epic would not have had standing to sue and the case would have been dismissed.
https://blog.seattlepi.com/seattlepolitics/2015/05/07/judge-...
Epic breached the terms of the agreement for their app, so their app was removed from the App Store. Other than needing to fix their app to no longer be in violation of the guidelines, they could have cured that breach of the contract.
Instead Epic decided to sue Apple in court.
According to the Apple Developer Program License that you agree to (section 11.2 specifically) states:
> This Agreement and all rights and licenses granted by Apple hereunder and any services provided hereunder will terminate, effective immediately upon notice from Apple: > (a) if You or any of Your Authorized Developers fail to comply with any term of this Agreement other than those set forth below in this Section 11.2 and fail to cure such breach within 30 days after becoming aware of or receiving notice of such breach;
and section (f):
> (f) if You engage, or encourage others to engage, in any misleading, fraudulent, improper, unlawful or dishonest act relating to this Agreement, including, but not limited to, misrepresenting the nature of Your submitted Application (e.g., hiding or trying to hide functionality from Apple’s review, falsifying consumer reviews for Your Application, engaging in payment fraud, etc.).
This is not retaliation, this is simply following the license agreement that Epic agreed to.