Epic Games Spent $100M Battling Apple, But CEO Says It Was Worth Every Penny

Epic Games has spent over $100 million in legal fees fighting Apple's App Store rules over the past five years, according to CEO Tim Sweeney.

In a recent interview with Peter Kafka for Business Insider, Sweeney revealed the massive cost of the legal battle but maintained it was worth the price. "I think freedom cannot be purchased at too dear a price," he stated.

The conflict began in 2020 when Apple removed Fortnite from its App Store. This removal cost Epic Games significant revenue. According to Sweeney, Fortnite had earned approximately $300 million during its two years on iOS before being pulled from the platform.

The financial impact went beyond just lost direct sales. While Sweeney didn't give an exact figure for missed earnings after the removal, he suggested they were in the "hundreds of millions of dollars."

The bigger impact may have come from lost growth opportunities, as players might have abandoned the game when their Apple-using friends couldn't join them. This broader effect could have cost Epic "a billion dollars or more," according to the CEO.

Despite these substantial losses, Epic's persistence appears to have paid off. A U.S. court ruled last week that Apple must allow developers to direct users to alternative payment options outside the App Store. The ruling also prohibits Apple from demanding commissions on these external purchases or using intimidation tactics to discourage users from exploring other payment methods.

"It's 30% of revenue, so all major developers will support alternative payments," Sweeney explained, referring to the commission Apple typically takes from App Store purchases that developers can now potentially avoid.

The court decision likely means Fortnite will return to iOS devices soon, possibly within days. "I would be very surprised if Apple decided to brave the geopolitical storm of blocking a major app from iOS," Sweeney stated.

Though Apple has filed an appeal against the ruling, for now Epic seems to have won a significant victory on "anti-steering" rules - the policies that previously prevented developers from telling users about cheaper payment options outside the App Store.