Epic's final battle approaches

• Epic Games began its crusade against the App Store and Google Play in 2020.
• The company has potentially lost billions of dollars in revenue with Fortnite's removal, having generated $1.2bn before it was delisted.
• Epic is waiting for a key decision in the US on revenue share.
• Fortnite has returned to the App Store worldwide - except in Australia.

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It's hard to think that Epic began its crusade against Apple and Google’s platform fees and anti-steering policies nearly six years ago in 2020.

Prior to its removal from the App Store and Google Play after Epic introduced its own payment system for in-app purchases, Fortnite had generated $1.2 billion on mobile, largely on iOS. Epic has spent significant sums on legal battles and likely lost billions of dollars in potential mobile revenue.

It looks like we’re now reaching the end of Epic’s key role in reshaping the global regulatory framework for these mobile monopolies. Or should I say, Epic’s key role in simply creating them.

Fortnite returns

This week, Epic said Fortnite is now back on the App Store worldwide - except for Australia, where it claims Apple is still enforcing terms deemed unlawful in a case Epic itself won.

Epic’s statement came as it said Apple told the Supreme Court: “Regulators around the world are watching this case to determine what commission rate Apple may charge on covered purchases in huge markets outside the United States.”

The looming end of the long-running court battles with Apple (we’ll see - Apple has just thrown what Epic calls a "Hail Mary" to delay the conclusion of the case) comes as Epic cut a global settlement with Google to create a 20% store fee and 5% charge for its optional payment services. There are also reduced fees for subscriptions, while publishers are free to link to their own stores. We’re still waiting to see court approval for the US market on that.

Epic Games Store GM Steve Allison previously called the deal a "meaningful reset" for developers.

“Is it worth it? It's not for me to answer. It's for a developer [to answer]," he told PocketGamer.biz. "I think that those that want to lean in and get that 20% and maybe in some cases, 15%, I would say that's worth it.”

It’s been a remarkable few years for the mobile games industry. Epic’s part in that has fuelled the direct-to-consumer revolution, which hit record revenue levels again in Q4.

Epic is coming to the end of the road at a time when it’s laying off 1,000 employees, while targeting $500 million through cost savings in contracting, marketing and closing some open roles. 

CEO Tim Sweeney had blamed industry-wide challenges like slower growth, weaker spending, tougher cost economics, current consoles selling less than the previous generation and competition from non-gaming entertainment. Meanwhile, most pressingly, there had been a downturn in Fortnite engagement that started in 2025.

As I noted in a previous newsletter, it feels like the layoffs reframe Epic’s Google settlement. The cost has been high for Epic, and now it needs to take the prize. It’s ceded ground to rival Roblox, while it’s returning to mobile in a completely different environment than six years ago. Epic can’t just reset the clock and bring all those lost players back.

The Fortnite developer says it will continue to challenge Apple’s anticompetitive App Store practices of banning alternative app stores and competition in payments. And as it’s shown that in Australia, it is.

But it looks like this extraordinary period of endless court battles shaking up the mobile market is coming to an end, at least for Epic.

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