Fortnite vs Apple - WAN Show Aug 14, 2020

Episode Summary

Executive Summary: The episode centered on Epic/Fortnite’s public fight with Apple and Google over app store fees and payment restrictions, with strong discussion of how the 30% cut affects different business models and why Floatplane is especially constrained. The hosts also covered Starlink beta speeds and rural internet potential, plus reactions to Microsoft’s Surface Duo as a productivity-focused foldable alternative.

Main Topics: Fortnite vs. Apple and Google (Priority: 5/5): Epic Games intentionally triggered a conflict over app store fees and payment rules, leading to Fortnite being removed from Apple’s App Store and Google Play. The hosts debated monopolies, antitrust, PR strategy, and whether Apple’s ecosystem control is justified. Floatplane and app-store economics (Priority: 5/5): Linus explained why Apple’s rules are uniquely damaging to Floatplane: payment processors and creator payouts create real marginal costs, so a fixed 30% app-store cut is untenable without raising prices, which Apple also discourages. App Store monopoly, antitrust, and ecosystem lock-in (Priority: 4/5): The discussion broadened into how app stores function as gatekeepers for discovery and distribution, whether Apple’s integrated hardware/software model makes competition meaningful, and how the case could become a landmark antitrust fight. Starlink beta speeds and rural broadband (Priority: 4/5): The hosts reviewed early Starlink beta speeds and latencies, comparing them to Elon Musk’s promises and discussing how satellite internet could enable remote living and reduce reliance on urban infrastructure. Microsoft Surface Duo and dual-screen productivity (Priority: 3/5): The Surface Duo was discussed as a productivity-first dual-screen phone that may appeal to power users, even if it lacks the premium feel and futuristic single-panel design of foldable competitors. Sponsor reads and show wrap-up logistics (Priority: 2/5): The episode included sponsor promotions for Displate, PIA, and Vessi, followed by a rushed ending due to stream management issues and missing superchat access.

Key Arguments: Epic’s move was strategic PR as much as legal action: removing Fortnite from app stores created immediate public attention and framed Apple/Google as monopolistic gatekeepers. Apple’s 30% fee is far more damaging for businesses with real recurring costs (like creator payouts and streaming delivery) than for digital goods with near-zero marginal delivery cost. Apple’s rules prevent developers from even mentioning off-app subscriptions or support links, making the App Store environment especially restrictive. A compromise could be allowing Apple Pay in-app while also permitting different pricing on the web versus in-app, so Apple’s payment convenience remains available without forcing losses on developers. The situation may become a major antitrust case because app stores now behave more like utilities and discovery platforms than ordinary retail channels. Starlink’s initial speeds are promising for rural users, but the service is still in beta and heavily dependent on user density per satellite cell. The Surface Duo fills a distinct productivity niche: split-screen workflows, messaging, email, Slack, and multitasking may matter more than having a seamless single folding display. Dual-screen phones may attract a different customer than premium foldables: less status, more utilitarian and business-oriented use. Apple and Google both benefit from ecosystem lock-in, but Apple’s tighter control makes it harder for developers to route around platform fees.

Data Points: App store cut: 30% - The fee Apple and Google take from app purchases and in-app payments, repeatedly criticized as excessive. Payment processor fee: 2.9% + 30 cents (sometimes up to 3.7%) - Used to contrast standard processing costs with the far larger app-store commission. Starlink download speed: 36–60 Mbps - Reported early beta download speeds from Ookla tests. Starlink upload speed: 5–17.7 Mbps - Reported early beta upload speeds from Ookla tests. Starlink latency: as low as 31 ms - Early beta latency observed in speed tests. Starlink cell bandwidth: roughly 500 Mbps maximum per 50 km x 50 km cell - Used to explain why speeds depend on how many users share the service area. Netflix 4K minimum: 25 Mbps or higher - Referenced as a benchmark for whether Starlink would be adequate for streaming. Surface Duo price: $1,400 USD (128 GB) / $1,500 USD (256 GB) - Microsoft’s announced pricing for the dual-screen device. First Samsung Fold price: $1,980 - Used as a comparison point to the Surface Duo. Pixel 2 XL RAM: 4 GB - Referenced as the host’s current phone when discussing multitasking needs. Surface Duo RAM: 6 GB - Mentioned while assessing whether it could support productivity multitasking. Surface Duo battery: 3,577 mAh - Raised as a concern given the dual-screen form factor. Private Internet Access servers: 3,300 servers in 30 countries - Sponsor mention describing VPN infrastructure. VPN device limit: up to 10 devices - Sponsor copy stated simultaneous device support. Displate catalog: over 800,000 different arts - Sponsor mention describing the art-print marketplace.

Pivotal Quotes: "This is a monopoly and it’s hurting consumers because, look, you could be paying less." — Linus: Explaining Epic’s anti-App Store argument and the public framing of the dispute. "There is no way I would ever want to touch your credit card number because I don’t want the liability." — Linus: Discussing why Floatplane relies on payment processors instead of building its own payment system. "The peak rate of about half of that for version one of the system would be about that." — Elon Musk (quoted by hosts): Referenced while comparing promised Starlink speeds to beta test results.

Implications: The episode suggests app-store fee fights could reshape mobile platform rules and developer pricing power. It also highlights Starlink’s potential to expand remote work and shows that dual-screen phones may carve out a niche for productivity-focused users.