Apple — the trillion-dollar tech giant behind the iPhone, iPad, and Mac — just lost one of the most important lawsuits in its history.
It will cost them billions of dollars and may mark the start of a long decline.
But the most surprising part?
Apple didn’t lose to another tech titan like Google or Microsoft.
They lost to a video game — Fortnite.
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The Beginning: One Update That Changed Everything
It all started in August 2020, when Epic Games, the creator of Fortnite, quietly added a new payment option to its iOS version of the game.
Instead of paying through Apple’s system, players could pay Epic directly — and even get a 20% discount.
That simple update triggered a digital war.
Apple immediately banned Fortnite from the App Store, claiming Epic had violated their rules.
Within hours, Epic sued Apple.
But this wasn’t a random reaction.
It was a trap — carefully set years in advance.
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Project Liberty: Epic’s Plan to Take Down Apple
For years, Epic’s founder Tim Sweeney had accused Apple of running an illegal monopoly.
Apple takes a 30% cut from every app purchase and in-app transaction made through the App Store.
Even if developers wanted to use their own payment system, Apple didn’t allow it.
To challenge that, Epic created Project Liberty, a legal and PR campaign designed to expose Apple’s control.
When Fortnite was banned, Epic was ready — lawyers, statements, and all.
It was David vs. Goliath: Epic Games (valued at $30 billion) versus Apple (worth over $2 trillion).
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The First Verdict: A Small Win, a Big Loss
In 2021, the judge ruled in Apple’s favor — mostly.
Apple wasn’t declared a monopoly.
But the court did find that banning external payments violated California’s competition laws.
Apple was ordered to let apps tell users about other payment options.
Apple didn’t like that one bit.
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Apple’s “Malicious Compliance”
Instead of simply following the order, Apple introduced new “rules” in 2024.
Developers could add links to outside payment systems — but Apple would still charge a 27% commission, plus processing fees.
In other words, nothing really changed.
And whenever a user clicked an external link, Apple showed a warning screen:
> “You’re about to leave Apple. We are not responsible for your security.”
These “scare screens” made users afraid to buy anything outside Apple’s system.
Developers argued it was manipulative — and the court agreed.
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The Hammer Falls: Apple Loses in Court
In 2025, Judge Yvonne Gonzalez Rogers ruled that Apple’s actions were anticompetitive.
She accused Apple of lying under oath, ignoring court orders, and continuing to exploit its market dominance.
She even named top Apple executives, including CEO Tim Cook, as being directly responsible for the misconduct.
The case was referred for possible criminal contempt.
Epic Games had finally won.
Tim Sweeney declared:
> “The long national nightmare of the Apple Tax is over.”
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The Ripple Effect: The App Store Opens Up
Within days, major platforms took advantage of the ruling.
Spotify added new payment options.
Patreon allowed direct creator payments.
Stripe published guides for using off-app payments.
And yes — Fortnite finally returned to the App Store.
It was a historic victory for developers and consumers.
But for Apple, it meant billions in lost revenue — and that was just the beginning of their problems.
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Apple’s Bigger Problem: China
While Apple fought Epic in court, another storm was brewing — in China.
Over 95% of Apple’s products are still manufactured and assembled there.
More than 1,600 factories and five million workers depend on Apple’s supply chain.
But wages in China have more than doubled since 2013.
Young workers don’t want low-paying factory jobs anymore.
Meanwhile, Apple’s market share in China has dropped — from first place to third, with iPhone sales falling 18% in 2024.
Chinese brands like Huawei and Vivo now make high-end phones at lower prices.
The “premium” Apple image doesn’t work like it used to.
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The Trade War Hits Hard
Then came Donald Trump’s trade war.
Tariffs on Chinese goods jumped from 10% to as high as 145%.
This time, Apple wasn’t exempt.
“Tim Cook built Apple’s supply chain in China,” said one former executive.
“Now, he’s paying the price.”
To make things worse, China has passed strict new laws requiring data from Chinese users to stay in China, and forcing large foreign companies to add a Chinese board member.
That’s bad news for Apple’s privacy-focused image.
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A Risky Escape Plan: India
Tim Cook is trying to fix this by shifting production to India.
So far, about 14% of iPhones are made there.
Analysts say India could match China’s production within 5 years — but matching China’s efficiency could take 15 years.
That’s far longer than Apple can afford.
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Apple’s Fall From Grace
Between lawsuits, tariffs, falling Chinese sales, and slow innovation, Apple’s problems are piling up.
Their new “Apple Intelligence” AI rollout was criticized as underwhelming.
Their stock is down 20% since December — nearly $1 trillion lost in market value.
Apple, once untouchable, now looks vulnerable.
And the irony?
The company that once changed the world with the iPhone might have been undone by a video game.
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