Epics Fortnite standoff is putting Apples cash cow at risk

Apple and Epic Games have gone to war, with the two companies clashing over Apple’s App Store policies. Epic, in protest of Apple’s 30 percent fee for any digital transactions on its iOS platform, attempted to circumvent things with a direct payment option in Fortnite, leading Apple to ban the game entirely. But Apple’s Fortnite fight isn’t just over a particular policy for the App Store; it’s a battle that could decide the future of one of the key parts of Apple’s present and future business.

The 30 percent “Apple tax” is the beating heart for Apple’s services business, which it has emphasized as growth as the iPhone business starts to slow. That line of revenue has become a critical part of Apple’s business, the bright star executives...

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