Lawsuit alleges Apple blocks cloud gaming apps to stifle Apple Arcade competition

Posted:
in General Discussion
A new class action lawsuit alleges that Apple enjoys monopoly power in the iOS mobile gaming marketplace, and exhibits anticompetitive behavior to keep it that way.

Credit: Apple
Credit: Apple


The complaint, lodged in the U.S. District Court for the Northern District of California, claims that Apple has "unlawfully [foreclosed] competition" through "persistent, pervasive, and secretive" misconduct.

New Jersey man John Pistacchio, the plaintiff in the case, claims to be paying "supracompetitive prices" for Apple Arcade as a result of the company's alleged anticompetitive behavior.

More specifically, the lawsuit suggests that Apple exerts monopoly power over the iOS App Store by requiring developers to follow its app guidelines and by prohibiting third-party app stores. It adds that developers and app publishers are "powerless to constrain" Apple's conduct by refusing to publish apps on iOS.

"No developer or group of developers have sufficient power to entice enough iOs users to leave iOS, such that developing apps solely for other platforms would be profitable," the complaint reads, suggesting that companies like Microsoft, Facebook, and Google fall into that category.

The complaint goes on to claim that Apple exhibits anticompetitive behavior to maintain its monopoly status in iOS subscription-based gaming services.

Those alleged anticompetitive behaviors include imposing technical restrictions to prevent users from playing other services besides Apple Arcade; imposing contractual restrictions on developers; abusing its app review guidelines to protect its monopoly; and rejecting cloud-based subscription platforms.

It cites several instances of alleged anticompetitive behavior, such as Apple's prohibition on cloud gaming apps like Xbox Game Pass and its treatment of gaming services like Facebook Gaming.

Furthermore, the lawsuit suggests that Apple blocks competing game services not because they violate its app review guidelines, but because they are rivals to Apple Arcade. (Apple Arcade, in fact, complies with all of Apple's own guidelines.)

"Apple has taken advantage of its dual role as both gatekeeper and market player, repeatedly abusing its monopoly power to prevent competition with Apple Arcade. Apple's anti-competitive conduct forecloses competition in the iOS Subscription-Based Mobile Gaming Market, affects a substantial volume of commerce in this market, and causes anticompetitive harms to consumers," the complaint reads.

The lawsuit urges a jury trial, and seeks compensatory damages and punitive damages, injunctive relief for the plaintiff and class, statutory interest and penalties, and legal fees.

Additionally, it asks the court to establish a "constructive trust into which Apple's ill-gotten gains shall be disgorged and from which Plaintiff and members of the Class may obtain restitution."


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Comments

  • Reply 1 of 29
    BeatsBeats Posts: 3,073member
    What a weird argument since Apple Arcade isn't a cloud service.
    CuJoYYCtmayagilealtitudewatto_cobra
  • Reply 2 of 29
    tmaytmay Posts: 6,329member
    Supracompetitive prices at $4.95 a month for unlimited gaming?

    Good luck with that.

    John Pistacchio, you might have a better argument that Apple's Arcade pricing is Supercompetitive, ie, priced so low that no one else can compete.
    Beatsleavingthebiggwatto_cobra
  • Reply 3 of 29
    tmay said:
    Supracompetitive prices at $4.95 a month for unlimited gaming?

    Good luck with that.

    John Pistacchio, you might have a better argument that Apple's Arcade pricing is Supercompetitive, ie, priced so low that no one else can compete.
    Is this guy even real? 

    I know a Peter Cashew who is filing a lawsuit against Sony because they can’t get their Xbox live games to download on their PlayStation.

    He has a backer named Sim Tweeney who for some reason doesn’t want to be mentioned in the lawsuit. 
    tmayanomeleavingthebiggwatto_cobra
  • Reply 4 of 29
    flydogflydog Posts: 1,123member
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    Not weird at all.  A cloud-based service is the only way a developer could provide the equivalent of Apple Arcade.  Apple does not allow cloud-based games. The fact that Apple Arcade is not a cloud service is not relevant. 
    gc_ukxyzzy01
  • Reply 5 of 29
    tmaytmay Posts: 6,329member
    flydog said:
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    Not weird at all.  A cloud-based service is the only way a developer could provide the equivalent of Apple Arcade.  Apple does not allow cloud-based games. The fact that Apple Arcade is not a cloud service is not relevant. 
    My recollection is that Apple does in fact allow an app to host a single cloud based game. In essence, the game shows up in the app store with its own icon and descriptors, and Apple has an approval process for that. Any other games from the same cloud based developer, would show up as apps in the store.

    This isn't what the game streamers want, but the alternative is to use a browser for game play.
    edited October 2020 watto_cobra
  • Reply 6 of 29
    mcdavemcdave Posts: 1,927member
    Arcade is an app-library subscription not a streaming service. If Apple blocked 3rd party game apps the suit would make more sense.
    Beatswatto_cobra
  • Reply 7 of 29
    BeatsBeats Posts: 3,073member
    flydog said:
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    Not weird at all.  A cloud-based service is the only way a developer could provide the equivalent of Apple Arcade.  Apple does not allow cloud-based games. The fact that Apple Arcade is not a cloud service is not relevant. 
    mcdave said:
    Arcade is an app-library subscription not a streaming service. If Apple blocked 3rd party game apps the suit would make more sense.
    He explains it well above.
  • Reply 8 of 29
    So another in a growing list of legal actions against Apple and its app store practices. 

    Apple needs to get a case decided in court to determine if these claims have any substance or are just opportunistic claims on its success.

    In my opinion it's their devices and their iOS and their store - no  one has been forced to purchase an Apple device (plenty of choices, and heck aren't they meant to be these supper luxury items anyway that are only for all the ohh so elite of elite consumers. And nor have they forced coders to make iOS apps - once again they decided to do that).  Surely Apple have the right to make and manage their devices the way they want to. 
    omar moralestenthousandthingswatto_cobra
  • Reply 9 of 29
    It looks like Epic has found another to try and get at Apple. Their own will likely fail next year so this is a good opportunity from behind the scenes.
    watto_cobra
  • Reply 10 of 29
    It looks like Epic has found another to try and get at Apple. Their own will likely fail next year so this is a good opportunity from behind the scenes.
    Huh? Epic doesn't have a cloud streaming service. Quite the contrary, cloud streaming services like xCloud, Stadia, Luna and GeForce Now are competitors with Epic's Origin app store. If this disgruntled XBox fan who would rather file a lawsuit than simply spend $60 on a Wal-Mart tablet - terrible for locally executed apps but quite good for streaming services like Netflix, Hulu, Amazon Prime and xCloud - wins this lawsuit it won't make anything better for Epic and it might actually make things worse. 
  • Reply 12 of 29
    Rayz2016Rayz2016 Posts: 6,957member
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    As you may have noticed, the definition of 'monopoly' stretches to fit the argument.

     Apple has a monopoly in the thing created.
    Apple has a monopoly on iPhones. No one else is allowed to crack open an iPhone, copy it and sell it, and call it an iPhone.

    Apple Arcade is in competition with cloud services, on a platform they created and owned.

    Apple is in competition with my Breville because eating toast is an alternative activity to checking your email.

    Something needs to be done about Google's monopoly in search engines, even though there are other search engines, Google isn't stopping anyone from creating a search engine, and I don't use Google's search engine.

    I'm afraid we're in an age where success is punishable by sanctions. You get too good at what you do, then you're competitors, who're not as good, should be cut a piece of the action.

    Rewarding incompetence; it's what the people want obviously.
    edited October 2020 BombdoegenovelleBeatstmayMacProwatto_cobra
  • Reply 13 of 29
    Rayz2016Rayz2016 Posts: 6,957member

    mcdave said:
    Arcade is an app-library subscription not a streaming service. If Apple blocked 3rd party game apps the suit would make more sense.

    And they're not actually blocking anything. If Apple prevented Safari from running streaming games, then that would be a problem.

    If you want to write a streaming service, then go through the browser. 

    User goes to the service, adds the service home page as an icon on their phone.

    Job done.


    watto_cobra
  • Reply 14 of 29
    genovellegenovelle Posts: 1,480member
    Rayz2016 said:
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    As you may have noticed, the definition of 'monopoly' stretches to fit the argument.
     Apple has a monopoly in the thing created.
    Apple has a monopoly on iPhones. No one else is allowed to crack open an iPhone, copy it and sell it, and call it an iPhone.

    Apple Arcade is in competition with cloud services, on a platform they created and owned.

    Apple is in competition with my Breville because eating toast is an alternative activity to checking your email.

    Something needs to be done about Google's monopoly in search engines, even though there are other search engines, Google isn't stopping anyone from creating a search engine, and I don't use Google's search engine.

    I'm afraid we're in an age where success is punishable by sanctions. You get too good at what you do, then you're competitors, who're not as good, should be cut a piece of the action.

    Rewarding incompetence; it's what the people want obviously.
    You point is, on point!
    Beatssgs46watto_cobra
  • Reply 15 of 29
    BeatsBeats Posts: 3,073member
    Rayz2016 said:
    Beats said:
    What a weird argument since Apple Arcade isn't a cloud service.
    As you may have noticed, the definition of 'monopoly' stretches to fit the argument.

     Apple has a monopoly in the thing created.
    Apple has a monopoly on iPhones. No one else is allowed to crack open an iPhone, copy it and sell it, and call it an iPhone.

    Apple Arcade is in competition with cloud services, on a platform they created and owned.

    Apple is in competition with my Breville because eating toast is an alternative activity to checking your email.

    Something needs to be done about Google's monopoly in search engines, even though there are other search engines, Google isn't stopping anyone from creating a search engine, and I don't use Google's search engine.

    I'm afraid we're in an age where success is punishable by sanctions. You get too good at what you do, then you're competitors, who're not as good, should be cut a piece of the action.

    Rewarding incompetence; it's what the people want obviously.

    This is stupid American thinking. I've read people say that Apple owes them money because they're "too rich" when they hit a 2T market cap.... yeah I've read comments like that. *shakes head*
    watto_cobra
  • Reply 16 of 29
    I think we are reaching Atlas Shrugged levels of stupidity now.
    watto_cobra
  • Reply 17 of 29
    LOL...the entirety of the App Store is in competition with Apple Arcade. There's nothing stopping Apple's competitors from funding their own original iOS/iPadOS games and basing a subscription service around it. Microsoft could have created an entire library of iOS/iPadOS games based on flagship IP like Gears of War or Halo or Forza. They just chose not to do it in favor of keeping those games centered around their own OS and hardware offerings. 
    watto_cobra
  • Reply 18 of 29
    LOL...the entirety of the App Store is in competition with Apple Arcade. There's nothing stopping Apple's competitors from funding their own original iOS/iPadOS games and basing a subscription service around it. Microsoft could have created an entire library of iOS/iPadOS games based on flagship IP like Gears of War or Halo or Forza. They just chose not to do it in favor of keeping those games centered around their own OS and hardware offerings. 
    If you think that an iPhone or even an iPad Pro could store - let alone run - a library of modern generation PlayStation or XBox games - Nintendo Switch is a totally different animal - then you don't follow tech apart from the Apple ecosystem. 

    Also, I don't get why the whole "Netflix for games" notion offends so many of you just because Apple decides not to allow it. Anyway this doesn't matter. Microsoft is going to implement this as a PWA just like Amazon did. The only question is whether Google and Nvidia are now going to, and whether PlayStation, Epic and Steam follow suit when their streaming services inevitably launch within the next 2 years.

    Basically by doing this what Apple is doing is increasing and normalizing the adoption of PWAs. Which, of course, is what Google, Microsoft and Amazon have always advocated. Because PWAs will inevitably rely on Azure, AWS and Google Cloud Platform. And also because PWAs make you less dependent on getting third party developers to put an app in your store (Microsoft for Windows 10X and Windows on ARM devices) and it enables cheap devices that don't have enough local processing power to provide a good user experience running premium apps (as many as half the active Android devices including all the Amazon Kindle ones). 
  • Reply 19 of 29
    cloudguy said: If you think that an iPhone or even an iPad Pro could store - let alone run - a library of modern generation PlayStation or XBox games - Nintendo Switch is a totally different animal - then you don't follow tech apart from the Apple ecosystem. 
    Gears of War and Halo and Forza are all Microsoft's IP, correct? That means Microsoft can create additional iOS/iPadOS games based on that IP and sell it in the App Store. Nintendo already does this. They have mobile games that use their IP but aren't identical to the games they sell on their own hardware. Any of the video game giants could fund iOS/iPadOS games and sell them in the App Store or use them as the basis for a subscription service like Apple Arcade or Game Club. So the reality is that they choose not to release competitive games in the App Store. They prefer to direct people to their own OS/hardware for games based on that IP. 

    "Netflix for games" doesn't offend me. It's just disingenuous, since Netflix streams files (not required for review by App Store) and Xbox cloud gaming would be streaming applications (required for review by App Store). 
    edited October 2020 watto_cobra
  • Reply 20 of 29
    cloudguy said:
    LOL...the entirety of the App Store is in competition with Apple Arcade. There's nothing stopping Apple's competitors from funding their own original iOS/iPadOS games and basing a subscription service around it. Microsoft could have created an entire library of iOS/iPadOS games based on flagship IP like Gears of War or Halo or Forza. They just chose not to do it in favor of keeping those games centered around their own OS and hardware offerings. 
    If you think that an iPhone or even an iPad Pro could store - let alone run - a library of modern generation PlayStation or XBox games - Nintendo Switch is a totally different animal - then you don't follow tech apart from the Apple ecosystem. 

    Also, I don't get why the whole "Netflix for games" notion offends so many of you just because Apple decides not to allow it. Anyway this doesn't matter. Microsoft is going to implement this as a PWA just like Amazon did. The only question is whether Google and Nvidia are now going to, and whether PlayStation, Epic and Steam follow suit when their streaming services inevitably launch within the next 2 years.

    Basically by doing this what Apple is doing is increasing and normalizing the adoption of PWAs. Which, of course, is what Google, Microsoft and Amazon have always advocated. Because PWAs will inevitably rely on Azure, AWS and Google Cloud Platform. And also because PWAs make you less dependent on getting third party developers to put an app in your store (Microsoft for Windows 10X and Windows on ARM devices) and it enables cheap devices that don't have enough local processing power to provide a good user experience running premium apps (as many as half the active Android devices including all the Amazon Kindle ones). 
    Do you follow tech news? Because PlayStation launched their streaming service 6.5years ago.
    watto_cobra
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