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Why are Apple and Epic going to court over Fortnite currency? | Apple

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Apple and Epic Games will go head to head in court in front of a US federal judge on Monday, the latest stage in the Fortnite maker’s campaign to break open the iPhone’s walled garden.

The feud has been growing since last August, when Epic set in motion a plan – known internally as “project liberty” – to try to get past the restrictions Apple places on software made for iPhones and iPads. Here is what brought the two companies to this point.

What is Epic’s problem with Apple?

The App Store is the only way to install software on iPhones and iPads, but companies have to play by Apple’s rules if they want to be included. Those rules are byzantine, controlling everything from adult content to security practices, but Epic’s main issue is with the rules controlling how it can charge customers for “V-bucks”, the in-game currency used to buy items in Fortnite.

Apple requires large companies to pay 30% of the money they receive for such sales of digital goods – since last December, smaller companies can apply for a discounted rate – a cut which Epic’s founder and chief executive, Tim Sweeney, had long complained was extortionate.

How did Epic kick off the fight?

Sweeney sent Apple a behind-the-scenes ultimatum: allow Epic to run its own App Store for iPhones, where it could take payments without a cut.

Apple rejected Epic’s terms, and on 13 August Epic unilaterally updated Fortnite to allow users to buy V-bucks direct, and offered a discount for those who did. Apple and Google, whose Google Play app store rules were also circumvented, retaliated within hours by removing the game. Epic took the fight public, reworking Apple’s famous 1984 commercial to pitch the company under Tim Cook as the new villain.

Does Epic have history with this sort of thing?

The showdown with Apple has echoes of past Epic campaigns, which have had mixed results. It successfully forced Sony’s hand in 2017 in a nearly identical playbook. Fortnite was updated to allow “cross play”, letting Microsoft Xbox and Nintendo Switch players compete directly, but Sony refused to allow PlayStation owners to join. That autumn, a brief software update – which Epic said was a mistake – enabled the feature for PlayStation owners, proving that it was possible and casting Sony as the sole holdout. The company panicked, fearing it could lose its reputation as the console platform “for the players”, its tagline at the time, and relented.

Another attempt to bypass controls was less successful. Epic launched the Epic Games Store on Android in 2018, using a technical feature of Google’s mobile platform to legitimately bypass the company’s control. The store ran for two years, but was eventually shuttered because, Epic said: “Google puts software downloadable outside of Google Play at a disadvantage, through technical and business measures such as scary, repetitive security pop-ups.”

What has Apple’s response been?

Apple has held fast. The company not only removed Fortnite from the App Store, as Epic expected, but initially tried to go further by threatening Epic’s ability to publish software for Macs too. That would have harmed another wing of Epic’s business, where the company makes the Unreal engine, a popular tool for developing 3D graphics for the gaming, film and design industries. The courts blocked that salvo after Microsoft joined in on Epic’s side.

Apple insists there is no room for negotiation, and that the rules the App Store runs on are there to ensure the safety and security of its users. Requirements to funnel payments through Apple protect users against financial scams, and a ban on installing alternative app stores prevents malware from running rampant on the platform.

Does Epic have any supporters?

A whole load. Shortly after the case was launched, a new body, the Coalition for App Fairness appeared, with members including Epic, Spotify and the Tinder owner Match Group. CAF is firmly aimed at Apple, and argues that the company’s 30% cut “represents an enormous portion of their revenue, in many cases an untenably large one”. The Guardian is a member of the News Media Association, itself a member of News Media Europe, which in turn is part of CAF.

Other CAF members have similar complaints about different parts of the App Store. makes gadgets which can track lost items, a market Apple entered in April. Tile argues Apple has an unfair advantage, because it allows its AirTags software capabilities that Tile was barred from using.

What is the legal case likely to turn on?

According to court filings, Epic will present Apple’s restrictions as the acts of a monopoly player that is extracting unfair payments from companies with no option but to accede. Apple will argue that the success of other mobile phone makers shows that it is not a monopolist, and that the small portion of Epic’s business that occurs on iOS – reportedly less than 10% of Fortnite’s revenues before it was pulled – further supports the idea that the two companies are equals.

Are there any surprises in store?

It is rare that battles between companies this big make it to open court, because the incentive to settle beforehand is so big. The list of executives lined up to testify includes Tim Cook and Tim Sweeney, Apple’s Eddy Cue and Craig Federighi, the former App Store boss Scott Forstall and witnesses from Facebook and Microsoft. Testimony under oath extracted by skilled lawyers could produce some uncomfortable disclosures from everyone.

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Elon Musk sells Tesla shares worth $6.9bn as Twitter trial looms | Elon Musk

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Elon Musk has sold $6.9bn (£5.7bn) worth of shares in Tesla after admitting that he could need the funds if he loses a legal battle with Twitter and is forced to buy the social media platform.

The Tesla CEO walked away from a $44bn deal to buy Twitter in July but the company has launched a lawsuit demanding that he complete the deal. A trial will take place in Delaware in October.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk said in a tweet late on Tuesday.

In other comments on Twitter on Tuesday, Musk said “yes” when asked if he was finished selling Tesla stock. He also said he would buy Tesla stock again if the Twitter deal does not close.

Musk has committed more than $30bn of his own money to the financing of the deal, with more than $7bn of that total provided by a coterie of associates including tech tycoon Larry Ellison, the Qatar state investment fund and the world’s biggest cryptocurrency exchange, Binance.

Musk, the world’s richest person, sold $8.5bn worth of Tesla shares in April and had said at the time there were no further sales planned. But since then, legal experts had suggested that if Musk is forced to complete the acquisition or settle the dispute with a stiff penalty, he was likely to sell more Tesla shares.

Last week Musk launched a countersuit against Twitter, accusing the platform of deliberately miscounting the number of spam accounts on the platform. Twitter has consistently stated that the number of spam accounts on its service is less than 5% of its user base, which currently stands at just under 238 million. Legal experts have said that Musk will find it hard to convince a judge that Twitter’s spam issue represents a “company material adverse effect” that substantially alters the company’s value – and therefore voids the deal.

Musk sold about 7.92m Tesla shares between 5 August and 9 August, according to multiple filings. He now owns 155m Tesla shares or just under 15% of the electric carmaker.

The latest sales bring total Tesla stock sales by Musk to about $32bn in less than one year. However, Musk remains comfortably ahead of Jeff Bezos as the world’s richest man with an estimated $250bn fortune, according to the Bloomberg billionaires index.

Tesla shares have risen nearly 15% since the automaker reported better-than-expected earnings on 20 July, also helped by the Biden administration’s climate bill that, if passed, would lift the cap on tax credits for electric vehicles.

Musk also teased on Tuesday that he could start his own social media platform. When asked by a Twitter user if he had thought about creating his own platform if the deal didn’t close, he replied: “X.com”.

With Reuters



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Iran reveals use of cryptocurrency to pay for imports • The Register

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Iran has announced it used cryptocurrency to pay for imports, raising the prospect that the nation is using digital assets to evade sanctions.

Trade minister Alireza Peyman Pak revealed the transaction with the tweet below, which translates as “This week, the first official import order was successfully placed with cryptocurrency worth ten million dollars. By the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries.”

It is unclear what Peman Pak referred to with his mention of widespread use of crypto for foreign trade, and the identity of the foreign countries he mentioned is also obscure.

But the intent of the announcement appears clear: Iran will use cryptocurrency to settle cross-border trades.

That’s very significant because Iran is subject to extensive sanctions aimed at preventing its ability to acquire nuclear weapons and reduce its ability to sponsor terrorism. Sanctions prevent the sale of many commodities and technologies to Iran, and financial institutions aren’t allowed to deal with their Iranian counterparts, who are mostly shunned around the world.

As explained in this advisory [PDF] issued by the US Treasury, Iran has developed numerous practices to evade sanctions, including payment offsetting schemes that let it sell oil in contravention of sanctions. Proceeds of such sales are alleged to have been funnelled to terrorist groups.

While cryptocurrency’s anonymity has been largely disproved, trades in digital assets aren’t regulated so sanctions enforcement will be more complex if Iran and its trading partners use crypto instead of fiat currencies.

Which perhaps adds more weight to the argument that cryptocurrency has few proven uses beyond speculative trading, making the ransomware industry possible, and helping authoritarian states like Iran and North Korea to acquire materiel for weapons.

Peyman Pak’s mention of “widespread” cross-border crypto deals, facilitated by automated smart contracts, therefore represents a challenge to those who monitor and enforce sanctions – and something new to worry about for the rest of us. ®



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Edwards Lifesciences is hiring at its ‘key’ Shannon and Limerick facilities

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The medtech company is hiring for a variety of roles at both its Limerick and Shannon sites, the latter of which is being transformed into a specialised manufacturing facility.

Medical devices giant Edwards Lifesciences began renovations to convert its existing Shannon facility into a specialised manufacturing centre at the end of July.

The expansion will allow the company to produce components that are an integral part of its transcatheter heart valves. The conversion is part of Edwards Lifesciences’ expansion plan that will see it hire for hundreds of new roles in the coming years.

“The expanded capability at our Shannon facility demonstrates that our operations in Ireland are a key enabler for Edwards to continue helping patients across the globe,” said Andrew Walls, general manager for the company’s manufacturing facilities in Ireland.

According to Walls, hiring is currently underway at the company’s Shannon and Limerick facilities for a variety of functions such as assembly and inspection roles, manufacturing and quality engineering, supply chain, warehouse operations and project management.

Why Ireland?

Headquartered in Irvine, California, Edwards Lifesciences established its operations in Shannon in 2018 and announced 600 new jobs for the mid-west region. This number was then doubled a year later when it revealed increased investment in Limerick.

When the Limerick plant was officially opened in October 2021, the medtech company added another 250 roles onto the previously announced 600, promising 850 new jobs by 2025.

“As the company grows and serves even more patients around the world, Edwards conducted a thorough review of its global valve manufacturing network to ensure we have the right facilities and talent to address our future needs,” Walls told SiliconRepublic.com

“We consider multiple factors when determining where we decide to manufacture – for example, a location that will allow us to produce close to where products are utilised, a location that offers advantages for our supply chain, excellent local talent pool for an engaged workforce, an interest in education and good academic infrastructure, and other characteristics that will be good for business and, ultimately, good for patients.

“Both our Shannon and Limerick sites are key enablers for Edwards Lifesciences to continue helping patients across the globe.”

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