Epic Games is Now Required to Pay $245 Million in FTC Order Over Fortnite Practices

How has the Fortnite player base reacted to the news?

On February 11, 2021, the Federal Trade Commission (FTC) announced that Epic Games, the developer of the popular battle royale video game Fortnite, had been ordered to pay $245 million to settle allegations that its practices violated the FTC Act. The FTC alleged that Epic Games violated antitrust law by using exclusive deals to stifle competition, as well as failing to adequately inform players that their in-game purchases were non-refundable and required special parental consent.

The $245 million fine is one of the largest antitrust settlements in the video game industry, and it reflects the shift in the FTC’s approach to regulating video game companies. Under the settlement, Epic Games must also implement new compliance measures to ensure that its practices are in line with antitrust laws and provide more transparency to players.

The FTC’s investigation was prompted by several complaints from players and rivals, who alleged that Epic Games was using its dominant market share of the “Battle Royale” genre of games to exclude competitors. According to the FTC, Epic Games was using exclusive licensing deals with phone and console manufacturers to ensure that Fortnite was the only game in the genre available on their platforms. In addition, the FTC accused Epic Games of failing to inform players that in-game purchases were non-refundable and that purchases made by children required special parental permission.

The FTC’s ruling is a warning to other video game companies not to engage in similar practices. In recent years, the FTC has ramped up its oversight of the gaming industry, cracking down on deceptive and anti-competitive practices. The FTC’s ruling serves as a reminder that, while the industry continues to grow in size and complexity, there are still rules and regulations that must be followed.

The fines imposed on Epic Games are significant, but the company still managed to avoid harsher punishment. Epic Games initially faced a potential fine of up to $1.3 billion and up to 20 years of court-mandated oversight, but the agreed-upon $245 million fine did not include court-mandated supervision. The lighter punishment suggests that Epic Games was able to convince the FTC that it would voluntarily undertake the required compliance measures.

The settlement with Epic Games is a notable victory for both the FTC and the players of Fortnite. The FTC was able to take action against a major player in the video game industry, while players are now better informed about the “Battle Royale” genre and the features included in their in-game purchases. Ultimately, the FTC’s ruling serves as a reminder that no company is too big to be accountable to the law.