WEBVTT 00:00:01.280 --> 00:00:07.030 designed in California 00:00:09.380 --> 00:00:16.740 Apple versus epic it's a battle for the 00:00:13.380 --> 00:00:18.720 ages or at least this age when we all 00:00:16.740 --> 00:00:21.720 have mobile devices running specialized operating systems that can run apps that 00:00:20.400 --> 00:00:26.279 read data from Internet connected servers on the other side of the world 00:00:23.880 --> 00:00:31.080 imagine explaining that to someone from the olden times you see Demetrius you 00:00:29.099 --> 00:00:34.140 can't just go buy an abacus from the Abacus store use it to calculate how 00:00:33.120 --> 00:00:39.719 much grain you'll have for the winter and forget about it because the Abacus 00:00:36.120 --> 00:00:41.760 is itself a store and 30 from each bead 00:00:39.719 --> 00:00:46.200 that you buy goes to the guy that made the Abacus and that's only for the beads 00:00:43.559 --> 00:00:53.120 that guy allows you to buy and also uh some of those beads are themselves tiny 00:00:49.260 --> 00:00:53.120 abacuses that are also stores 00:00:53.840 --> 00:00:59.820 okay fine that was a really dumb analogy but it does show how hard it is to 00:00:58.440 --> 00:01:05.159 illustrate the relationship between markets stores and products especially 00:01:02.760 --> 00:01:09.180 as those things become less physical and more virtual entities that we access 00:01:07.140 --> 00:01:14.280 through the unlimited internet portals we're all carrying in our pockets 00:01:11.460 --> 00:01:18.420 but are they really unlimited according to fortnite developer epic 00:01:16.080 --> 00:01:22.920 games they're not thanks to Apple and Google's restrictive App Store policies 00:01:20.159 --> 00:01:27.840 30 standard Revenue cut and alleged dirty attempts to stifle competition 00:01:25.259 --> 00:01:32.939 that's why epic sued both of them in August 2020 and spent months preparing 00:01:30.479 --> 00:01:39.240 for a convoluted and hilarious trial with apple that ultimately ended with a 00:01:36.060 --> 00:01:41.159 near total loss for epic causing CEO Tim 00:01:39.240 --> 00:01:45.799 Sweeney to climb a mountain and think about his life choices but this story is 00:01:43.680 --> 00:01:51.299 far from over partly because everyone yes even Apple who won is appealing the 00:01:49.259 --> 00:01:55.140 ruling because the Google trial hasn't even begun yet and also because this 00:01:53.280 --> 00:01:59.640 fight isn't just about cheaper Ariana Grande skins in fortnite it's about 00:01:57.360 --> 00:02:05.700 questions like who controls our devices should phones just be tiny PCS is a 00:02:03.060 --> 00:02:10.739 naked banana man not safe for work and it's all part of a larger battle 00:02:07.560 --> 00:02:12.490 going on all over the world the battle 00:02:10.739 --> 00:02:16.560 for Apple's soul 00:02:16.560 --> 00:02:23.239 the Titans epic games and apple went to federal court today epic alleges that 00:02:21.000 --> 00:02:28.680 the App Store is a monopoly how much agency do developers have they 00:02:26.400 --> 00:02:32.900 don't want to pay 30 Apple could win and the decision could change the entire app 00:02:30.840 --> 00:02:37.560 world extremely competitive behavior that is 00:02:35.640 --> 00:02:41.280 very successful winds up looking a lot like anti-competitive Behavior I don't 00:02:39.420 --> 00:02:45.060 know if you want to think like really really wild worst case scenarios it's 00:02:43.560 --> 00:02:48.840 that Apple decides that it doesn't want to allow third-party apps anymore to 00:02:46.980 --> 00:02:53.580 truly comprehend this story we first have to understand not only what an 00:02:50.700 --> 00:02:57.780 iPhone is but what Apple thinks it is because let me tell you epic thinks it's 00:02:55.680 --> 00:03:02.640 something completely different okay they're just on completely different 00:02:59.400 --> 00:03:05.160 wavelengths here so this 00:03:02.640 --> 00:03:08.519 is an iPhone artisan 00:03:06.540 --> 00:03:12.680 handheld Computing device made by friendly hipster savants at Apple it 00:03:10.920 --> 00:03:17.400 runs apps which you can download exclusively from Apple's iOS app store 00:03:15.180 --> 00:03:21.780 where Apple takes a sizeable cut of all in-app purchases of digital Goods while 00:03:19.379 --> 00:03:26.099 there are ways to jailbreak an iPhone so you can get apps directly from the web 00:03:23.400 --> 00:03:30.060 or other app stores if you do that Apple will void your warranty because you see 00:03:28.140 --> 00:03:34.260 only apple is capable of determining what software is safe or appropriate to 00:03:32.640 --> 00:03:40.080 install on their I mean your iPhone compare that to any 00:03:38.340 --> 00:03:43.519 other smartphone which could be made by any one of the dozens of companies that 00:03:41.640 --> 00:03:47.099 spit these out on a semi-annual basis slapping the Android operating system on 00:03:45.900 --> 00:03:51.239 them as they're pushed out the door Google would prefer you get your apps 00:03:49.500 --> 00:03:55.739 from their own Play Store where they also take a cut but they don't View 00:03:53.580 --> 00:04:00.360 getting apps from Samsung's Galaxy store or Amazon's Android app store or even 00:03:57.959 --> 00:04:05.220 directly from the web as an excommunical sin Google has made escalating attempts 00:04:03.540 --> 00:04:10.140 to collect licensing fees from Android device makers but at its core Android is 00:04:08.099 --> 00:04:14.939 still open source that's why you can find it in Smart TV boxes cameras cars 00:04:12.840 --> 00:04:18.900 watches refrigerators and it's relatively easy for tinkerers to tinkle 00:04:17.220 --> 00:04:23.160 with any one of them and figure out a way to run Doom 00:04:20.699 --> 00:04:28.860 so use this for that but in their tinkle friendliness both iOS and Android pale 00:04:25.979 --> 00:04:35.040 in comparison to truly generalized open ecosystem Computing platforms like Linux 00:04:31.259 --> 00:04:36.960 Windows and yes even macOS many 00:04:35.040 --> 00:04:41.699 enthusiasts want nothing more than for mobile computers to behave just like 00:04:38.639 --> 00:04:44.520 desktop ones none more so than Apple and 00:04:41.699 --> 00:04:49.500 Google's Public Enemy Number One hey I'm Sweeney tinkerer extraordinaire whether 00:04:47.400 --> 00:04:53.400 it's taking apart a lawnmower as a five-year-old 00:04:50.720 --> 00:04:58.620 unsupervised or attempting to take apart entire markets the man clearly needs to 00:04:56.520 --> 00:05:03.360 get his fingers in there figure out how something works and then build it better 00:05:00.960 --> 00:05:08.100 and optimally in a way that Nets him some extra cheddah or at least that's 00:05:06.240 --> 00:05:12.360 the cynical view here like obviously epic's lawsuits are at least partially 00:05:10.380 --> 00:05:16.680 motivated by the search for more money but I think it's clear Tim isn't just 00:05:14.759 --> 00:05:22.320 trying to Jeff bezos's way to space because if he were why would he lead 00:05:19.860 --> 00:05:26.280 epic games on this long and perilous Journey taking on the world's largest 00:05:24.300 --> 00:05:30.120 tech companies with one of the most Bonkers legal strategies ever seen you 00:05:28.979 --> 00:05:34.199 want to make some money all you got to do is buy some nfts and wait in 10 years 00:05:32.280 --> 00:05:41.340 you'll be swimming in offers for the thing you would whatever the that 00:05:37.199 --> 00:05:42.960 is hence because of who Tim Sweeney is I 00:05:41.340 --> 00:05:48.060 think it's clear that there's also an ideological Factor here A belief that 00:05:46.020 --> 00:05:53.160 the iPhone as Apple conceives of it should not even exist 00:05:50.759 --> 00:05:56.520 we have to dig deeper it's time to go back to how this all started it's time 00:05:55.380 --> 00:06:01.440 to go back to the original tackling set they're kicking us out of here come on I 00:05:59.580 --> 00:06:06.259 couldn't have five more minutes you've had six months ah let's take longer baby 00:06:06.419 --> 00:06:11.759 all right in the summer of 2020 epic 00:06:09.419 --> 00:06:16.020 games set out to trap itself some tech Giants you may be familiar with the 00:06:13.560 --> 00:06:19.979 story by now epic added an option in the mobile versions of fortnite to buy 00:06:17.460 --> 00:06:24.780 in-game currency V bucks directly from epic at a discount bypassing the 30 cut 00:06:22.979 --> 00:06:30.180 in apple and Google's Payment Systems the message to Consumers look that swoop 00:06:27.720 --> 00:06:34.500 to whoop dance emote could be cheaper if Apple and Google kept their grubby Paws 00:06:32.160 --> 00:06:37.620 to themselves Apple and Google promptly booted fortnite from their app stores 00:06:36.120 --> 00:06:44.240 for breaking the terms of service triggering epics epic trap observe now a 00:06:41.220 --> 00:06:44.240 dramatic reenactment 00:06:50.000 --> 00:06:58.139 they fell victim to one of the classic blunders and it really it hurt them 00:06:54.780 --> 00:07:01.819 really bad look oh he's that's not gonna 00:06:58.139 --> 00:07:01.819 heal up right away 00:07:07.139 --> 00:07:14.340 these lawsuits would be dissected and argued about for months to come but this 00:07:11.639 --> 00:07:19.020 is epic's case in a nutshell here is the market for mobile devices okay neither 00:07:16.560 --> 00:07:24.120 Apple nor Google have a monopoly here they compete with each other that's fine 00:07:21.000 --> 00:07:25.919 okay but epic argues that iPhones and 00:07:24.120 --> 00:07:31.199 Android phones aren't just products they're also sub-markets where 00:07:28.380 --> 00:07:36.780 developers compete to offer apps that's what those little squares are I can't I 00:07:33.419 --> 00:07:38.940 can't draw down here Apple and Google do 00:07:36.780 --> 00:07:42.979 have effective monopolies in their respective mobile app sub-markets and 00:07:40.740 --> 00:07:47.880 they enforce this duopoly through anti-competitive action on iOS this 00:07:45.840 --> 00:07:52.620 means the blocking of side loading and third-party app stores and payment 00:07:49.680 --> 00:07:56.520 processors on Android using third-party app stores and side loading are allowed 00:07:54.300 --> 00:08:01.560 but it often involves an onerous process full of scary warnings ooh on top of 00:08:00.120 --> 00:08:07.020 that Google has been accused of making Shady deals to obstruct anyone trying to 00:08:04.139 --> 00:08:12.000 take a shot at the big boss now Epic wants these barriers to competition 00:08:09.500 --> 00:08:15.840 removed so they can launch a proper mobile version of the epic game store 00:08:13.740 --> 00:08:20.460 which would presumably take the same 12 percent cut that it does on PC if that 00:08:18.599 --> 00:08:25.080 route fails then they could settle for the right to use a third-party payment 00:08:22.080 --> 00:08:26.580 processor in iOS or Play store apps 00:08:25.080 --> 00:08:31.560 something that's actually already allowed if your app sells physical goods 00:08:29.099 --> 00:08:35.820 or services like Amazon or Uber either of these options having your own app 00:08:33.539 --> 00:08:42.419 store or payment processor would let epic and other developers avoid paying 00:08:38.459 --> 00:08:44.159 the 30 cut or so epic thought legally 00:08:42.419 --> 00:08:47.399 Apple may still have the right to a commission on in-app purchases as a way 00:08:46.020 --> 00:08:54.420 to benefit from their intellectual property if the judge rules that way 00:08:51.060 --> 00:08:57.779 so remember epic views an iPhone as 00:08:54.420 --> 00:08:59.880 basically a little PC it's Hardware that 00:08:57.779 --> 00:09:04.080 happens to run Apple's mobile OS a thought that makes about as much sense 00:09:01.140 --> 00:09:08.880 to Apple as a drowning fish because to Apple iPhone is a singular entity 00:09:06.660 --> 00:09:11.530 created when a meticulously crafted body is imbued with the breath of life that 00:09:11.220 --> 00:09:17.839 is oh 00:09:15.600 --> 00:09:23.940 it's iOS ah 00:09:20.180 --> 00:09:27.240 what epic criticizes as restrictions are 00:09:23.940 --> 00:09:29.640 in actuality features of the iPhone 00:09:27.240 --> 00:09:35.519 those strict limits enable the iPhone security ease of use for both developers 00:09:32.399 --> 00:09:38.700 and users and tasteful curation of the 00:09:35.519 --> 00:09:41.279 vast chaos of Internet content Apple may 00:09:38.700 --> 00:09:46.200 have a monopoly on the iOS apps distribution Market but they argue 00:09:42.959 --> 00:09:50.700 that's not a valid sub-market when the 00:09:46.200 --> 00:09:54.480 App Store is what makes iOS iOS 00:09:50.700 --> 00:09:57.000 it epic says Apple's restricting user 00:09:54.480 --> 00:10:01.019 Choice Apple says those users have already made the choice to buy an iPhone 00:09:59.279 --> 00:10:05.040 you want to sideload get an Android don't buy a blender and complain that it 00:10:03.000 --> 00:10:10.860 sucks a grilling steak we got a visual for that 00:10:07.080 --> 00:10:12.779 ah gross now back to the story after 00:10:10.860 --> 00:10:17.279 epic dropped their declaration of war there were multiple skirmishes epic 00:10:14.880 --> 00:10:20.700 tried to mobilize its large mostly young player base against apple with a very 00:10:19.200 --> 00:10:24.540 tasteful hashtag free fortnite tournament Apple tried to ban epic's 00:10:23.279 --> 00:10:29.940 developer accounts which would have screwed over any game using Unreal 00:10:26.820 --> 00:10:31.740 engines okay buddy was big mad and other 00:10:29.940 --> 00:10:36.180 big tech companies were subpoenaed for documents leading to a delightful 00:10:33.839 --> 00:10:41.160 exchange where Apple asked valve for price and sales data for over 30 000 00:10:38.339 --> 00:10:48.240 Steam games and in-game items including every price change since 2015 and valve 00:10:45.060 --> 00:10:50.579 was like LOL we don't have that you 00:10:48.240 --> 00:10:54.480 think we're keeping track our CEO went full Lebowski and moved to Middle Earth 00:10:52.320 --> 00:10:58.560 this isn't JP morganster this is a Wendy's many gamers cheered from the 00:10:56.700 --> 00:11:03.300 metaphorical bleachers as one of the pioneers of the PC gaming industry took 00:11:00.660 --> 00:11:06.480 on the Californian Tech cult thank you 00:11:04.740 --> 00:11:10.800 those who weren't still pissed about epic games snagging exclusive games away 00:11:08.459 --> 00:11:14.760 from Steam anyways but even if you think an epic win against Apple would be good 00:11:12.720 --> 00:11:20.459 for the mobile industry it's important to note here that epics trap wasn't just 00:11:17.519 --> 00:11:25.800 over the top as a legal strategy it was also a questionable move at best here's 00:11:24.300 --> 00:11:29.640 what business attorney and my favorite YouTuber while I was researching the 00:11:27.360 --> 00:11:34.980 story Richard Hogue had to say that epic had an expert that effectively said 00:11:31.260 --> 00:11:36.420 Apple was okay before 2010 and even 00:11:34.980 --> 00:11:41.880 though they didn't change their rules at all they didn't change what we're talking about here it became illegal 00:11:39.899 --> 00:11:47.100 based on their operating system market share and that's a tough Pace to bring 00:11:44.160 --> 00:11:51.839 see apple hadn't significantly changed anything about how the App Store Works 00:11:48.839 --> 00:11:54.300 epic seemingly just decided at some 00:11:51.839 --> 00:11:58.800 arbitrary point that the rules they had agreed to follow when they signed the 00:11:55.860 --> 00:12:03.480 iOS Developer agreement were bad now in fact they were illegal so it's fine to 00:12:01.440 --> 00:12:07.440 break them and withhold that 30 of fortnite Revenue however however as epic 00:12:05.880 --> 00:12:11.339 was about to find out the law doesn't really care whether you think it should 00:12:09.480 --> 00:12:15.360 be illegal to imprison animals in a pet store you can't break in and let them 00:12:13.440 --> 00:12:19.860 loose in a shopping mall we talked about this Sarah but there 00:12:17.459 --> 00:12:22.300 cute who are these people where do we find 00:12:21.779 --> 00:12:27.720 these people 00:12:27.720 --> 00:12:36.480 questionable legal strategy or no on May 3rd 2021 the trial of epic games versus 00:12:33.420 --> 00:12:38.820 Apple finally commenced presided over by 00:12:36.480 --> 00:12:42.779 judge Yvonne Gonzalez Rogers who had also adjudicated a couple previous cases 00:12:40.740 --> 00:12:47.160 against Apple but I doubt she was prepared for the hundreds of fortnite 00:12:44.820 --> 00:12:51.839 players who spammed the trials call-in line leading to the first 20 minutes of 00:12:49.079 --> 00:12:57.720 the trial being dominated by gems like this oh yo we want mobile badge Bros 00:12:55.279 --> 00:13:01.200 I don't care if Apple's saying you under the belt I don't care who wins just 00:12:59.339 --> 00:13:04.940 bring mobile back oh yeah subscribe to my YouTube Justin XO yes and I subscribe 00:13:04.079 --> 00:13:10.339 to you that's my favorite one fortnite battle 00:13:07.740 --> 00:13:10.339 royale 00:13:14.959 --> 00:13:19.100 yeah if Apple went out 00:13:19.160 --> 00:13:28.579 Giovanni Gonzalez mobile I'm gonna play Travis Scott chill 00:13:29.000 --> 00:13:35.519 oh those Rascals the call-in incident 00:13:33.000 --> 00:13:40.740 was an omen this wasn't going to be some dry corporate litigation this was the 00:13:38.279 --> 00:13:45.240 free fortnite lawsuit Addie Robertson who somehow had the mental fortitude to 00:13:43.200 --> 00:13:50.519 live tweet almost the entire three-week trial described it thusly it was 00:13:48.260 --> 00:13:54.300 complicated you'd have one day where people are talking about the subtleties 00:13:52.260 --> 00:13:58.680 of whether the iPhone is like electricity and then another day where 00:13:56.279 --> 00:14:03.240 Tim Sweeney just goes off about like the metaverse and his Ambitions for fortnite 00:14:00.300 --> 00:14:08.220 we had one morning that was just a very long tutorial for how to use fortnite 00:14:05.519 --> 00:14:12.180 from Apple weirdly enough especially in the early trial it was just a really 00:14:10.500 --> 00:14:16.200 weird free-for-all but they would just go after completely random directions 00:14:13.980 --> 00:14:22.200 like the point where like epic was worried that Apple was saying that one 00:14:19.320 --> 00:14:26.639 of its characters was naked if it was a banana that wasn't wearing a suit and 00:14:24.480 --> 00:14:31.260 that they were trying to make clear in court the character is not actually 00:14:28.800 --> 00:14:35.519 graphically naked the trial also served as a sort of Gossip column for the tech 00:14:33.180 --> 00:14:39.899 industry thanks to loads of confidential documents shown as evidence revealing 00:14:37.440 --> 00:14:45.959 that Sony wanted money to enable crossplay and Microsoft got PC streaming 00:14:43.680 --> 00:14:50.459 apps Shadow suspended from the app store oh honey 00:14:47.579 --> 00:14:54.540 tea was spilled but of course there were some developments that were a bit more 00:14:52.019 --> 00:14:59.279 on topic and usually made Apple look worse than epic for example epic thinks 00:14:56.940 --> 00:15:03.600 Apple can afford to lower the 30 cut which makes sense given that the iOS app 00:15:01.260 --> 00:15:10.320 store made an estimated 50 billion dollars in 2019 and 64 billion in 2020 00:15:07.740 --> 00:15:14.940 but the reason those are estimates is because Apple lumps its App Store 00:15:12.180 --> 00:15:19.860 Revenue in with its services Revenue an apple executive Phil Schiller refused to 00:15:17.940 --> 00:15:24.060 get more specific telling the court that neither he nor anyone at Apple knows 00:15:22.560 --> 00:15:30.959 whether the App Store is actually profitable although they don't deny that 00:15:27.240 --> 00:15:33.180 it likely is okay Phil 00:15:30.959 --> 00:15:37.260 testimony seemed even more suspect given internal emails from 2011 where he 00:15:35.339 --> 00:15:42.360 predicted App Store competition would eventually make apple lower the default 00:15:39.660 --> 00:15:49.500 30 cut and even suggested they lower it to 20 if they can maintain 1 billion in 00:15:45.600 --> 00:15:51.720 yearly Revenue well I mean 00:15:49.500 --> 00:15:56.579 you made it guys but epic faced scrutiny too like why 00:15:54.540 --> 00:16:00.779 didn't they target the makers of gaming consoles which are also closed 00:15:58.440 --> 00:16:05.040 ecosystems that take a 30 cut of all transactions and they don't even allow 00:16:02.519 --> 00:16:09.899 side loading like Android epic says well consoles often don't actually turn a 00:16:07.620 --> 00:16:13.800 profit so that 30 is all they get and they're gaming specific devices while 00:16:11.639 --> 00:16:18.240 phones are pretty general purpose what they didn't say is probably closer to 00:16:16.019 --> 00:16:21.899 the truth that getting fortnite banned from consoles would massively hurt 00:16:20.040 --> 00:16:26.279 epic's bottom line and they have better relationships with those companies 00:16:23.100 --> 00:16:28.860 anyways suing your friends usually makes 00:16:26.279 --> 00:16:32.699 things pretty awkward just ask Andrew Garfield from The Social Network I was 00:16:31.260 --> 00:16:37.980 your only friend get one friend did you see that movie 00:16:35.880 --> 00:16:43.019 he was great in Spider-Man one of my favorite parts of the trial 00:16:39.899 --> 00:16:44.639 was am I a meme yet Craig federighi's 00:16:43.019 --> 00:16:48.300 testimony I don't know anything about what you're talking about epic pointed 00:16:46.440 --> 00:16:53.880 out that Apple has no problem allowing side loading on macOS and in response 00:16:50.759 --> 00:16:55.740 Craig threw macOS under the bus saying 00:16:53.880 --> 00:17:00.779 there's a level of malware on the Mac that we don't find acceptable if you use 00:16:58.079 --> 00:17:05.699 the same system on iOS it would get run over even worse than macOS you see 00:17:03.480 --> 00:17:10.020 according to federigi the Mac is like a car capable of being safely navigated 00:17:07.919 --> 00:17:14.160 through the apocalyptic Wasteland of malware on the Internet by capable 00:17:12.000 --> 00:17:19.740 drivers who know the risks while the iPhone and iPad are devices children 00:17:16.620 --> 00:17:21.240 heck even infants can operate like yes 00:17:19.740 --> 00:17:26.220 this is good because it's the phone for infants so capable adults should just 00:17:23.880 --> 00:17:31.020 accept that their thousand dollar phone is basically a Fisher-Price toy which is 00:17:29.340 --> 00:17:35.580 an argument I feel like it just doesn't make outside this it is more than 00:17:33.299 --> 00:17:39.419 willing to talk up the iPhone as being a full-featured work device and it's like 00:17:37.799 --> 00:17:43.080 kind of weird to hear it make the argument that the iPhone really should 00:17:41.100 --> 00:17:46.440 only be used by people who do not want to think about what they're doing with 00:17:44.580 --> 00:17:50.820 their Computing devices stories like this coming out of the trial made Apple 00:17:48.059 --> 00:17:55.679 look bad in the public eye but looking bad isn't illegal unless you show up to 00:17:53.580 --> 00:18:00.240 my cocktail party in Crocs and a turtleneck I will press charges when 00:17:58.440 --> 00:18:04.860 judge Rogers finally handed down her verdict on September 10th 2021 the 00:18:02.640 --> 00:18:10.620 ruling was described as either a crushing defeat or a resounding victory 00:18:07.860 --> 00:18:15.900 for either side depending on which article you read see apple won on all 00:18:14.100 --> 00:18:20.820 counts meaning epic would have to pay millions of dollars for breaching the 00:18:17.700 --> 00:18:23.220 App Store rules but Rogers found Apple 00:18:20.820 --> 00:18:26.940 in violation of California's unfair competition law for its anti-steering 00:18:25.440 --> 00:18:31.919 rules and ordered Apple to allow developers to put buttons external links 00:18:29.700 --> 00:18:37.200 or other calls to action directing users to payment methods other than Apple's 00:18:34.080 --> 00:18:38.600 in-app purchasing you did it Tim Sweeney 00:18:37.200 --> 00:18:45.179 nice one Mr Sweeney you're not happy about this 00:18:41.820 --> 00:18:47.820 uh the iPhone isn't a PC 00:18:45.179 --> 00:18:52.679 it's still an iPhone as expected both epic and apple appealed the ruling since 00:18:50.220 --> 00:18:57.179 a gigachad corporation doesn't just lay down and accept a split decision because 00:18:54.720 --> 00:19:02.039 they're not a beta okay okay epic did pay Apple what they owed 00:18:59.400 --> 00:19:05.880 but Apple requested a stay on the buttons order which was eventually 00:19:03.660 --> 00:19:11.400 granted one day before they would have been forced to make changes to the App 00:19:07.380 --> 00:19:13.740 Store meaning as of this moment this 00:19:11.400 --> 00:19:17.820 trial has directly changed basically nothing fortnite is still 00:19:16.320 --> 00:19:22.320 banned from the App Store and both parties are now waiting for the next 00:19:19.500 --> 00:19:26.460 hearing although fortnite is sort of back on iOS right now in the form of a 00:19:24.720 --> 00:19:30.419 closed beta for the touch controls version available on the GeForce now web 00:19:28.320 --> 00:19:35.220 app it has got to be a frustrating situation for epic but as many legal 00:19:32.640 --> 00:19:39.780 experts have pointed out it's not a surprising outcome because epic isn't 00:19:37.200 --> 00:19:44.940 defending itself from a bear attack it went up to the bear asleep in its cave 00:19:42.000 --> 00:19:48.179 and jabbed it in the eye so epic comes in with a little bit of that baggage 00:19:46.320 --> 00:19:50.940 where they say we had to breach this contract in order to bring this case and 00:19:49.559 --> 00:19:55.020 the judge tells them three separate times no we've got tons of law that says 00:19:53.940 --> 00:19:59.700 you don't have to breach this contract to claim the contract's illegal you can still operate under the contract and 00:19:58.140 --> 00:20:03.059 have this case and so when you complain about all these fortnite players that 00:20:01.500 --> 00:20:07.140 don't get to play it on iOS and I tell you you don't have to breach this contract you can go back to normal and 00:20:05.940 --> 00:20:11.940 also if you're really worried about Apple stealing your money we can put that money in escrow and nobody gets 00:20:10.799 --> 00:20:19.559 that money until the court case is settled what do you think epic and epic says no oh okay to contrast my boy Hogue 00:20:17.220 --> 00:20:23.580 brought up Microsoft and NVIDIA who had their game streaming apps for iOS 00:20:21.120 --> 00:20:28.440 rejected on pretty nebulous grounds apparently it's fine for Netflix to 00:20:26.400 --> 00:20:32.820 stream a library of movies and shows but if you're streaming games each one must 00:20:30.900 --> 00:20:37.200 be individually listed as App Store titles unless you're streaming those 00:20:34.980 --> 00:20:41.760 same games from your own local Xbox console or PC that's that's way 00:20:39.900 --> 00:20:46.860 different and totally fine hey have you considered an apple arcade subscription 00:20:43.440 --> 00:20:48.720 instead see that wrongful rejection case 00:20:46.860 --> 00:20:52.799 would be a solid one to bring to court but why go through the trouble when 00:20:50.820 --> 00:20:56.640 you've got an epic games in the mix what we've seen instead is that Microsoft is 00:20:54.539 --> 00:20:59.580 writing piggyback on Epic and saying well if epic wins that's fine with us 00:20:58.440 --> 00:21:04.500 because we're putting game pass on everything and if they don't win we've got our Xbox and so Microsoft is playing 00:21:02.820 --> 00:21:07.679 a very strategic game with what they're doing with respect to Epic and playing 00:21:05.940 --> 00:21:11.039 it either way but I think they would have been a stronger plaintiff if they 00:21:09.000 --> 00:21:14.940 wanted to be it seems that rather than getting their own hands dirty bigger 00:21:13.080 --> 00:21:19.320 companies like my Microsoft and NVIDIA are perfectly happy to let Firebrand Tim 00:21:17.100 --> 00:21:23.280 Sweeney try to take the world's most profitable company down a pig which 00:21:21.299 --> 00:21:28.679 makes Apple's accusations that Microsoft is the real brains of epics operation 00:21:25.559 --> 00:21:31.140 sounds slightly less paranoid but why is 00:21:28.679 --> 00:21:36.480 Mr Sweeney such a perfect character to use for this cage match the answer isn't 00:21:34.200 --> 00:21:42.120 his Advanced moveset it's his interesting backstory as early as 2017 00:21:39.900 --> 00:21:46.740 Tim Sweeney was using his company to criticize the 30 cut taken not just by 00:21:44.760 --> 00:21:51.059 Apple and Google's Mobile stores but by other software platforms like steam a 00:21:48.960 --> 00:21:55.380 critique that was shared by most game developers and it wasn't all talk either 00:21:53.280 --> 00:22:00.539 the epic game store was launched in 2018 with only a fraction of steam's 00:21:57.659 --> 00:22:05.039 functionality but with a default 12 Revenue cut in an obvious attempt to 00:22:03.179 --> 00:22:09.299 disrupt valve's dominant position in the PC gaming industry angering many gamers 00:22:07.380 --> 00:22:13.620 who actually like having most of their games all in one place thank you very 00:22:11.039 --> 00:22:18.360 much but also exerting pressure on valve who lowered their cut of steam revenue 00:22:15.659 --> 00:22:23.340 for games already making a lot of money and we've already said epic's double 00:22:20.220 --> 00:22:24.900 lawsuit attack was a weird move but it 00:22:23.340 --> 00:22:28.620 wasn't actually its first attempt to disrupt Mobile gaming it initially tried 00:22:26.940 --> 00:22:33.000 to do the same thing that basically every major game publisher has done on 00:22:30.840 --> 00:22:36.720 Windows released their own game launcher as a direct download outside the 00:22:34.919 --> 00:22:42.600 official app store should be no problem as long as Android is the open source 00:22:39.179 --> 00:22:44.179 tinkle-friendly OS it claims to be right 00:22:42.600 --> 00:22:49.380 yeah no according to epic's legal filings 00:22:47.700 --> 00:22:53.940 citing Google's internal documents Google was so focused on preventing Epic 00:22:52.200 --> 00:22:59.640 from launching fortnite outside the play store that it formed a fortnight task 00:22:56.580 --> 00:23:03.059 force that met daily epic says Google 00:22:59.640 --> 00:23:04.740 pressured OnePlus LG and Samsung to back 00:23:03.059 --> 00:23:09.120 out of deals to pre-install the epic games app on their phones and Google 00:23:06.360 --> 00:23:12.659 also publicized a security flaw found in the fortnite Launcher app even though 00:23:10.799 --> 00:23:18.840 epic was already rolling out a fix Google even considered buying out the 00:23:15.659 --> 00:23:21.240 smaller company epic had had enough in 00:23:18.840 --> 00:23:25.679 April 2020 just a few months before the V bucketing they finally gave in and 00:23:23.340 --> 00:23:29.460 released fortnite on the Play Store I mean at this point faced with one mobile 00:23:27.539 --> 00:23:33.480 app store that made it impossible to compete and another that made it 00:23:31.200 --> 00:23:38.280 practically impossible you'd think old Tim would give up 00:23:34.980 --> 00:23:40.860 huh yeah right Tim would make the iPhone 00:23:38.280 --> 00:23:45.799 into a PC even if it meant embarking on one of the most dangerous missions ever 00:23:42.539 --> 00:23:45.799 attempted by man 00:23:54.059 --> 00:24:00.480 bam in July 2020 a document is presented to 00:23:58.380 --> 00:24:06.840 the epic games board of directors it describes project Liberty a multi-stage 00:24:03.480 --> 00:24:09.179 plan to end the anti-competitive 30 tax 00:24:06.840 --> 00:24:14.340 on the iOS app store and Google Play Store by embarking on an aggressive and 00:24:12.000 --> 00:24:17.580 sustained legal and media campaign until platform fees are lowered apps are 00:24:16.440 --> 00:24:23.039 allowed to use their own payment platform or third-party app stores are 00:24:20.460 --> 00:24:27.059 allowed on mobile epic acknowledges they might lose revenue and access to their 00:24:25.380 --> 00:24:31.500 customers if fortnite is banned from the App Stores and that apple and Google's 00:24:29.159 --> 00:24:36.480 retaliatory PR campaigns could turn players against epic but those are all 00:24:34.080 --> 00:24:43.080 risks epic was willing to take because the time is now 00:24:38.880 --> 00:24:44.640 but why is the time now the thing that 00:24:43.080 --> 00:24:48.900 mostly I keep coming back to is that whatever epics motives there are a bunch 00:24:46.679 --> 00:24:53.700 of other companies other activists and Regulators that all have really similar 00:24:51.780 --> 00:24:58.679 complaints against Apple even if you think that epic is acting completely 00:24:55.919 --> 00:25:02.460 cynically it's a case that has relevance to so many parties outside epic that 00:25:00.720 --> 00:25:07.440 it's worth paying attention to see the point in time that epic made their move 00:25:04.140 --> 00:25:09.360 wasn't arbitrary at all 2020 had seen a 00:25:07.440 --> 00:25:14.100 rising wave of antitrust investigations into Google Apple and Facebook and 00:25:11.700 --> 00:25:18.179 project Liberty makes it sound like epic wanted to get ahead of the bandwagon and 00:25:16.380 --> 00:25:22.799 have a hand in shaping The Narrative rather than being at the mercy of some 00:25:20.100 --> 00:25:28.080 eventual government regulation the other thing driving epic to make their move 00:25:24.360 --> 00:25:29.220 was the hot buzzword of 2021 the 00:25:28.080 --> 00:25:33.419 metaverse what is it even the people riding an 00:25:31.980 --> 00:25:41.039 unhealthy amount of articles about it don't know but Tim Sweeney does it's the 00:25:38.220 --> 00:25:45.299 future of fortnite and a way for epic to make back some of the ship loads of cash 00:25:43.080 --> 00:25:48.720 they invested in their game store oh look I mean they want money like 00:25:47.039 --> 00:25:52.740 obviously their company they want money like I don't know I think maybe the most 00:25:50.760 --> 00:25:55.740 sort of revealing moment is that they were talking about how they want to 00:25:53.760 --> 00:25:59.400 build fortnite into a metaverse and eventually that means they want that 00:25:57.240 --> 00:26:02.940 metaverse to involve a whole economy that's like Creator based that people 00:26:01.080 --> 00:26:06.960 paying each other and if you think that epic wants to create the social space 00:26:04.919 --> 00:26:12.000 that comes after the web or the internet having to give Apple a cut of that is 00:26:09.419 --> 00:26:15.419 really not good for them if you're nerdy enough to be watching this far into the 00:26:13.559 --> 00:26:20.460 video you probably know that the term metaverse refers to a persistent virtual 00:26:18.360 --> 00:26:25.440 Universe with interconnected 3D spaces serving as an analog to the real world 00:26:22.080 --> 00:26:28.620 but for everyone else the metaverse is 00:26:25.440 --> 00:26:30.179 the internet just deeper in the future 00:26:28.620 --> 00:26:35.460 you'll still interact with the internet through web browsers apps and games but 00:26:33.179 --> 00:26:42.720 you'll also do it through VR and AR metaverse platforms made by Facebook I 00:26:39.240 --> 00:26:45.539 am not calling the meta or apple or if 00:26:42.720 --> 00:26:49.320 they get what they want epic games one could argue the closest thing to a 00:26:47.159 --> 00:26:54.179 metaverse we have now is the absolute phenomenon Roblox which is made up 00:26:51.960 --> 00:26:58.980 entirely of a Marketplace of user generated experiences that they suddenly 00:26:57.240 --> 00:27:04.380 stopped calling games during apple and epics trial because under the App Store 00:27:00.720 --> 00:27:06.659 rules games like fortnite can't host a 00:27:04.380 --> 00:27:12.600 Creator Marketplace leading to a very interesting and very subjective debate 00:27:09.000 --> 00:27:15.240 over what a game even is in the year of 00:27:12.600 --> 00:27:20.240 Our Lord 2021. under the current App Store Paradigm 30 of every transaction 00:27:17.880 --> 00:27:28.200 made by iOS users in epics fortnite metaverse would go to Apple and that 00:27:23.760 --> 00:27:29.940 epic games cannot abide seeing just how 00:27:28.200 --> 00:27:34.500 much money is on the line for epic here make makes it easier to understand why 00:27:32.039 --> 00:27:38.640 they would go to such extreme lengths in a fight against much more powerful 00:27:36.299 --> 00:27:43.860 opponents but that once again leads us to the question is epic just in this for 00:27:41.940 --> 00:27:48.240 the money do you wait to do what you claim to think is the right thing until 00:27:46.080 --> 00:27:52.200 it's most advantageous to you I think they are marketing their product and 00:27:50.460 --> 00:27:56.820 their services their marketing their personalities and their CEO and they're 00:27:54.360 --> 00:28:00.000 also marketing to legislatures to say hey look at how this is going Apple 00:27:58.380 --> 00:28:04.140 might win on the law as it stands now it's time to change that law that might 00:28:01.919 --> 00:28:08.580 be their end game because you only need to win in a smattering of jurisdictions 00:28:06.299 --> 00:28:12.960 to make it very difficult for Apple or Google to operate a unified platform 00:28:11.100 --> 00:28:17.039 without taking into account these various jurisdictions like I said in my 00:28:15.000 --> 00:28:21.720 deep dive on Star Citizen let's save that one for later if you haven't seen 00:28:18.360 --> 00:28:25.080 it no one can truly know anyone else's 00:28:21.720 --> 00:28:27.120 real motivations epic may just be trying 00:28:25.080 --> 00:28:31.140 to grab all the legendary loot on the map but the fact remains that they 00:28:28.980 --> 00:28:35.159 didn't manufacture all all that negative sentiment towards apple and Google's 00:28:32.820 --> 00:28:38.940 Mobile payment to wobble both from the public and other companies that have 00:28:37.020 --> 00:28:43.020 been burned by Apple's policies email services protonmail and base camp have 00:28:41.220 --> 00:28:47.220 criticized Apple's tendency to say they want everyone to play by the same rules 00:28:45.059 --> 00:28:51.179 but then make special deals with big companies and block app updates from 00:28:49.500 --> 00:28:56.159 smaller developers who are using the same non-apple billing tactics as 00:28:53.460 --> 00:29:00.419 Netflix a little company called Floatplane comes to mind you've got companies 00:28:57.960 --> 00:29:04.740 like tile and developers like Costa eleftherio who created Innovative 00:29:02.340 --> 00:29:08.419 products that were made obsolete when Apple released their own version this 00:29:06.419 --> 00:29:12.840 happens so often there's a word for it sherlocking and then you got big boys 00:29:10.679 --> 00:29:16.500 like Spotify who filed an Anti-Trust complaint with the EU called Apple's 00:29:14.700 --> 00:29:21.480 payment restrictions anti-competitive abuse and made a whole website dedicated 00:29:18.960 --> 00:29:25.860 to charting Apple's inability to play fair Microsoft is also clearly an epics 00:29:23.940 --> 00:29:29.220 Camp copying their 12 cut in the Microsoft store and suggesting that 00:29:27.539 --> 00:29:33.659 governments investigate Apple and Google for antitrust with which is especially 00:29:31.919 --> 00:29:37.500 Rich when you remember that Microsoft narrowly avoided being broken up after 00:29:35.580 --> 00:29:41.220 it was found guilty of using Monopoly power to suppress competition with 00:29:38.880 --> 00:29:44.220 Internet Explorer in 2001. they must have a short memory because a little 00:29:42.899 --> 00:29:50.159 while ago they were trying to force Windows users to use Edge once again see 00:29:46.980 --> 00:29:52.740 there's no good guys here but with so 00:29:50.159 --> 00:29:57.179 many rooting against Apple the End Game Richard was talking about may be on the 00:29:54.899 --> 00:30:01.260 horizon because even before this case's verdict was handed down Apple made a 00:29:59.460 --> 00:30:05.460 number of incremental changes to its App Store it reduced its App Store cut to 15 00:30:03.419 --> 00:30:09.659 for developers making less than one million dollars a year which affects 00:30:07.799 --> 00:30:14.700 less than five percent of Apple's App Store Revenue but they like fine a 00:30:12.600 --> 00:30:18.059 settlement from a different lawsuit led to Apple allowing developers to email 00:30:16.380 --> 00:30:22.080 their users about alternative payment options South Korea passed a law forcing 00:30:20.399 --> 00:30:26.039 Tech platforms to allow third-party payment options in their app stores and 00:30:23.820 --> 00:30:30.000 apple allowed reader apps like Netflix and Spotify to link directly from their 00:30:28.440 --> 00:30:33.720 app to their website to pay for a subscription something that they just 00:30:31.440 --> 00:30:38.399 kind of hinted at before like you can't pay here well where should I pay I'm 00:30:36.240 --> 00:30:41.760 sure you could figure it out Google has made similar changes before their trial 00:30:40.140 --> 00:30:45.480 has even begun they've got their own Small Business program they dropped 00:30:43.320 --> 00:30:48.659 Google Play service fees to 15 for all subscriptions and even lower for 00:30:47.100 --> 00:30:53.520 developers who optimize their apps for multiple device form factors so that 00:30:50.640 --> 00:30:58.799 according to Google 99 of developers qualify for a service fee of 15 or less 00:30:56.640 --> 00:31:01.980 Google also complied with South Korea's third party payments law before Apple 00:31:00.299 --> 00:31:05.640 did although they still take a cut albeit smaller of Google Play 00:31:04.020 --> 00:31:10.260 transactions handled by a third party which is also how apple is expected to 00:31:08.460 --> 00:31:15.059 handle it Apple's still taking 27 percent of 00:31:12.720 --> 00:31:18.720 third-party payments in the Netherlands meanwhile these slow turning wheels of 00:31:17.039 --> 00:31:22.320 government action on antitrust are spinning a bit faster now with 00:31:20.640 --> 00:31:25.740 challenges to NVIDIA's acquisition of ARM which actually may have already been 00:31:24.480 --> 00:31:32.279 canceled by the time this video comes out there's also challenges to facebook slash meta's acquisition of oculus and 00:31:30.059 --> 00:31:36.419 collusion with Google on digital ads popping up alongside proposed bills that 00:31:34.740 --> 00:31:41.220 would limit the ways big Tech can give their own Services preferential 00:31:38.100 --> 00:31:43.080 treatment so whether or not epic ends up 00:31:41.220 --> 00:31:47.760 directly benefiting from this lawsuit the wins are changing and it is still 00:31:46.200 --> 00:31:52.200 very much the beginning of this fight will it end with iOS and Android 00:31:50.039 --> 00:31:57.600 becoming more like macOS and Windows but squished into a tinier device 00:31:55.440 --> 00:32:00.720 I don't know there's still the Epic versus Google trial which honestly epic 00:31:59.460 --> 00:32:06.480 probably has a better shot in since Android is at least supposed to be an 00:32:03.000 --> 00:32:08.700 open platform so cheer up Tim you might 00:32:06.480 --> 00:32:11.760 just destroy the abstract concept of an iPhone yet 00:32:09.899 --> 00:32:15.360 keep calm tinkle on 00:32:13.200 --> 00:32:19.559 but you should Tinker with your grooming routine using our sponsor manscaped 00:32:17.940 --> 00:32:23.159 that's right we got another sponsor for a tech logger I don't know how the 00:32:21.240 --> 00:32:26.880 lawnmower 4.0 is the perfect companion for keeping your goods looking trim neat 00:32:25.260 --> 00:32:30.120 and clean the new wireless charging system removes the need to bring cables 00:32:28.440 --> 00:32:34.500 with you and is compatible with most QI charging pads it features ceramic blades 00:32:32.340 --> 00:32:38.220 with skin safe Tech which reduces Nicks and cuts and its cordless waterproof and 00:32:36.299 --> 00:32:42.899 gets 90 minutes of use on a full charge get 20 off plus free international 00:32:40.260 --> 00:32:47.580 shipping using promo code Tech at the link below wow thanks for watching guys 00:32:45.240 --> 00:32:49.980 uh was this one longer I don't know I think it might turn out to be longer 00:32:48.779 --> 00:32:54.120 than the first one I can't believe they let me make another one uh subscribe to 00:32:52.080 --> 00:32:58.020 techlinked if you want more stuff like this subscribe to they're just movies 00:32:56.220 --> 00:33:02.000 it's a movie podcast I could say ShortCircuit but I won't