The Leadership Letter

Real correspondence from the people running real companies — and what it reveals about leadership.

Reframe the Fight: You're Not a Toll Booth, You're a Bundle

When someone attacks your pricing, don't defend the price — redefine what they're actually paying for.

The App Store is not simply a marketplace -- it is part of a larger bundle of tools, technologies and services that Apple makes available to developers to develop and create great applications for iPhone, iPad and other Apple products. We know Epic knows this. Epic has been a major beneficiary of this investment and support.

Because of the App Store, Epic has been able to get Fortnite and other apps into the hands of millions instantly and at no cost, as Apple charges nothing upfront to distribute apps that are free to download. This exposure has earned Epic hundreds of millions of dollars from sales of in-app content, and brought with it lucrative brand partnerships and paid product placement.

Epic requests the right to offer a 'competing Epic Games Store app' through the App Store that would seemingly allow iOS device users to install apps from Epic directly. And Epic wants to offer 'competing payment processing options' in Fortnite and other Epic apps instead of using Apple's in-app purchase (IAP) system. As you know, Apple has never allowed this. Not when we launched the App Store in 2008. Not now. We understand this might be in Epic's financial interests, but Apple strongly believes these rules are vital to the health of the Apple platform and carry enormous benefits for both consumers and developers. The guiding principle of the App Store is to provide a safe, secure and reliable experience for users and a great opportunity for all developers to be successful but, to be clear, when it comes to striking the balance, Apple errs on the side of the consumer.

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Court Exhibit
Epic Games, Inc. v. Apple Inc.
4:20-cv-05640 (CAND), Doc. 65-2, filed 2020-09-04
September 4, 2020
Public domain
View the primary source →