The Whispir Ltd (ASX: WSP) share price has been a very strong performer on Friday morning.

At the time of writing, the communications workflow platform provider’s shares are up over 10% to $4.33.

This latest gain means the Whispir share price is now up 188% since this time last year.

Why is the Whispir share price zooming higher today?

Investors have been buying Whispir shares following the release of a positive announcement this morning.

According to the release, the company has renewed its business partner agreement with telco giant Telstra Corporation Ltd (ASX: TLS).

Whispir and Telstra have agreed to extend their agreement for a further period of three years. Positively, this is on the same terms and conditions as their previous agreement.

The release explains that the agreement allows Telstra to enter into contracts with its customers for the re-sale of the Whispir platform and other services. The agreement also provides the terms under which Telstra can use the Whispir platform and services for its own internal purposes.

What else is supporting the Whispir share price?

The Whispir share price may also be getting a boost today from bargain hunters swooping in following a 7.5% decline on Thursday. The company’s shares dropped following the release of its half year results.

While its results were very strong, it appears as though some investors were expecting an even stronger result or a greater upgrade to its annualised recurring revenue (ARR) guidance.

Management has narrowed its ARR guidance range from between $51.1 million and $55.3 million to between $53 million and $55.3 million. This represents a year on year increase of 21% to 31% over FY 2020’s ARR of $42.2 million.

In addition, Whispir’s CEO, Jeromy Wells, spoke positively about the future and its international expansion.

He said: “While ANZ currently accounts for around 81.9% of total revenues, Asia and North America are key to our longer-term growth strategy and we anticipate these markets will account for 50% of Group revenues by the end of FY23. We are sustainably building our footprint within Asia and leveraging past learnings within North America to ensure we are able to capitalise on our largest market opportunity.” 

More reading

• 3 exciting small cap ASX shares to put on your watchlist
• Why the Whispir (ASX:WSP) share price is on the rise today
• 2 high yield ASX dividend shares to buy today
• Telstra (ASX:TLS) full year dividend for 2021 expected to be 16 cents per share, fully franked
• 3 fantastic ASX shares to buy for strong returns

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Netflix Inc (NASDAQ: NFLX) raised prices in the US, Canada, and the UK at the end of 2020, and price hikes in other regions could well be in the works, too. But Netflix has more opportunities to grow its subscriber base outside of the US, where it hasn’t offered its service as long and won over the majority of its addressable market.

Price increases are an important piece of Netflix’s revenue growth in the US, but at $13.99 per month for its most popular plan, management may need stronger-than-usual cues from consumers that they’re willing to pay more before it raises prices again.

Netflix’s pricing strategy

Chief operating officer Greg Peters reminded investors how the company thinks about price increases during Netflix’s fourth-quarter earnings call. “We are looking for signals and signs from our members that are telling us essentially that we have added more value,” he said. “So you think about engagement with the service and retention and churn characteristics, acquisition.”

When Netflix sees a meaningful improvement in those numbers following its most recent price hike, it’ll go back and raise prices again. But Netflix may want to pay attention to several other factors before it raises its prices again in the US. As it faces more competition from Walt Disney Co, AT&T Inc, and other media companies shifting content to streaming, it may want to monitor the overall streaming market to determine what consumers can absorb.

Here are three factors for Netflix and its investors to consider when assessing the potential for another price hike in the US.

1. Differentiation

Netflix can’t consider the value it offers consumers in a vacuum; it needs to consider the amount of value it offers that consumers can’t get anywhere else. With more competitors entering the market at lower price points, savvy consumers may be able to replace content from one streaming service with the same or similar content on another.

To that end, Netflix already offers a lot of original and exclusive content. Thirty-nine per cent of its TV catalogue is composed of original series, according to data from Reelgood. That’s more than HBO Max, Disney+, and Hulu. Additionally, 83% of its content library is unavailable on any other streaming platform. Only Disney+ holds more exclusive rights as a percentage of its service.

Those numbers will only continue to climb for Netflix in 2021 as it continues to shift its content investments to originals. In its fourth-quarter letter to shareholders, the company said it has 500 titles currently in post-production.

2. Competitor results

2021 may be an opportunity for Netflix to pay close attention to how its competitors are performing. While management has historically tried to ignore what the competition was doing and focus on its own operations, competitors’ results may provide additional insight into consumers’ willingness to pay for streaming content.

First, Disney will raise the price of Disney+ and its three-service streaming bundle by $1 at the end of March. It’ll also raise the price in Europe by $2, but add additional content under the Star brand. With the sizable audience Disney has built for the service in just over a year, the price hike could provide additional insights into how consumers respond to a modest price increase.

Second, HBO Max is debuting WarnerMedia’s entire 2021 film slate with limited runs on the streaming service. Investors should pay attention to HBO Max activations and retail subscribers, as well as any commentary on churn rates. That could provide insight into consumer willingness to pay a premium price for premium streaming content. HBO Max costs $14.99 per month, $1 more than Netflix’s most popular plan.

It may seem counterintuitive to see positive results for Netflix’s competitors as a positive for Netflix, too. But considering the ongoing shift of time spent watching video from live TV to on-demand streaming, there’s room for multiple winners.

3. Overall willingness to pay for streaming

Netflix already offers one of the most expensive subscription video-on-demand services in the US. Its premium plan, which includes four simultaneous streams and 4K video, is $17.99 per month. Even if Netflix offers more originals and exclusives than its competitors, consumers might not be willing to pay just to access a big catalogue of content.

After all, that’s the idea behind cord-cutting. Consumers simply aren’t willing to pay the premium price for access to premium content. Netflix may offer “incredible entertainment value” as Peters points out, but at some point, consumers simply might not be willing to pay the price tag. 

Still, at less than $20 per month, it’s a far cry from the price of a standard cable bundle. And as cord-cutting accelerates, there’s more room in the budget for streaming. Of course, the goal of cord-cutting is to save money, so Netflix still has to keep its price attractive while providing enough content to convince people they can cancel their cable subscriptions.

It seems very likely Netflix will raise prices in its largest and most valuable market again at some point in the future. Positive signs from the three areas mentioned above mean the media company could raise prices sooner rather than later. Overall, a $1 per month price hike in the U.S. and Canada would translate into about $900 million in additional revenue, which will mostly go straight to Netflix’s bottom line and free cash flow.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• What will Netflix do with piles of cash?
• Does Netflix have a competitive advantage?
• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• Why Netflix stock jumped to an all-time high today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Adam Levy owns shares of Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix and Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Humm Group Ltd (ASX: HUM) share price is up in early trading after revealing a new buy now, pay later product for small businesses.

Humm is the business that used to be called FlexiGroup. Not only does it offer buy now, pay later but it also has revolving credit and small and medium enterprise (SME) finance.

What is humm’s new BNPL product?

Humm has officially launched hummpro, which it’s calling ‘business now pay later’.

The product has been designed to meet the flexible cashflow needs of SMEs across Australia and New Zealand. Humm wants to help SMEs as they invest and grow with trading conditions returning to pre-COVID-19 levels.

The company said that hummpro suits business owners that want to track their cashflow in one place. Customers can be approved in minutes and can spend seconds later.

Hummpro can be used anywhere that Mastercard is accepted. That means it can be used online, in store and to pay supplier invoices. Management pitched this as a useful feature because other ‘business now pay later’ products require that suppliers are onboarded and integrated into their network to accept payments.

All types of business customers will be able to use this product, including sole traders, companies, partnerships and trusts.

Humm will use its experience with responsible credit decisioning in its commercial business and consumer-focused experiences in the consumer space as it looks for growth opportunities with this new product.

CEO commentary

The humm CEO Rebecca James talked up the new product’s potential to meet sizeable SME needs:

Our research shows that SMEs across Australia and New Zealand are dissatisfied with their traditional credit card and overdraft solutions, so we’ve built a product that removes the hoops they normally have to jump through to access finance. With our quick approval and spend process, and our pay, pause and plan features, we’re providing small business owners with the ultimate control to manage their cashflow.

Close to three million SMEs contribute substantially to GDP across Australia and New Zealand; as the economy starts to rebuild – due in no small part to this critical sector – we see hummpro as the perfect option, providing quick and flexible access to capital to help small business owners invest in a stable future.

Humm FY21 profit expectations

A few weeks ago humm announced that it’s expecting to report cash net profit after tax of $43.4 million, up 25.8% compared to the prior corresponding period.

This was helped significantly by operating expenses falling 11.1% to $87.2 million and the loan impairment expense of $25 million being down 35.3% year on year.

Humm is expected to announce its half-year result on 24 February 2021.

More reading

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Pro Medicus Limited (ASX: PME) shares are climbing in morning trade despite the company announcing its co-founders have offloaded a parcel of their shares. At the time of writing, the Pro Medicus share price is up 2.5% to $46.40.

Co-founders sell shares

The Pro Medicus share price is on the rise regardless of the fact the health imaging company reported its co-founders have sold off a portion of their stake in the business.

According to this morning’s release, Pro Medicus co-founders Dr Sam Hupert and Mr Anthony Hall have each sold 1 million shares. The sale transacted at market close yesterday (18 February) at the price of $45.97 per share.

Pro Medius noted that the offload of shares by the co-founders represents less than 4% of their entire individual holdings. Dr Sam Hupert and Mr Anthony Hall now have 27,137,660 and 27,109,000 ordinary shares respectively after the change.

The company stated that both co-founders do not intend to sell further shares in the foreseeable future.

Words from the chair

Pro Medicus chair Peter Kempen commented on the sale of the shares:

We announced in February 2018 that the Board had encouraged the founders to consider selling up to 3 million shares each, in order to improve the liquidity in the company’s shares. This latest transaction completes that process. The sale, to a number of local institutions, was done “at market” which reflects the very strong underlying demand for the company’s shares.

Mr Kempen added:

Dr Hupert and Mr Hall remain actively engaged in the company and are committed to its future. This is evidenced by the fact that they remain the two key stake holders, with their combined holding post this recent sale being in excess of 52% of the shares on issue.

Pro Medicus share price snapshot

The Pro Medicus share price has been a stellar performer over the past 12 months, jumping by more than 100%. Pro Medicus shares hit a 52-week low of $14.50 in March before accelerating to an all-time high of $47.62 this week.

At the current share price of $46.60, Pro Medicus is a whisker away from breaking that feat again.

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Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The 4DS Memory Ltd (ASX: 4DS) share price has plunged in early trade this morning after the semiconductor developer announced its half-year results.

At the time of writing, the 4DS Memory share price is trading down 5.26% at 18.5 cents.

The numbers, what do they mean?

4DS has been building out its patent portfolio as it continues working towards its next-generation memory. Between August to December last year, the company added 6 additional USA patents. All of these were in relation to the company’s interface Switching ReRAM technology.

Progress continues to be made towards the development of the company’s memory. In late December, 4DS’ Second Non-Platform Lot underwent analysis – the results were deemed positive on 1 February, as we reported on.

However, all of these business activities come at a cost. 4DS is still in the development stages of its memory, which means little to no revenue is being derived from operational activities. For the half-year reported, 4DS recorded $29,378 in revenue, down 4% from the prior year.

Meanwhile, the company expanded bottom-line losses by 6% to $3.1 million. Most of the loss is due to the continued investment in research and development – which accounted for $2.13 million of expenditure in the half.

Remind me, where’s the memory up to?

The positive results confirmed on 1 February from the Second Non-Platform Lot produced some key takeaways:

• The company has been able to repeat the results for key memory characteristics (speed, endurance, and retention).
• 19 out of the 21 device wafers were functional, with the nonfunctional wafers developed outside the imec process window.
• Additional process parameters insights were gained.

Now, 4DS is awaiting results from its Second Platform Lot. These wafers commenced production at imec in Belgium on 27 January. Worth noting, this lot is using imec’s memory platform that has the capability to read and write selected bits and bytes.

Furthermore, results from the Second Platform Lot are expected in the second quarter of 2021. 4DS has stated the results from the Second Platform Lot will pave the way for fabricating wafers with chips that are fully functional megabit memories.

4DS share price recap

The 4DS Memory share price has experienced volatility throughout the year. For the shareholders that have held on, however, the returns have been pleasant. In the last 12 months, the 4DS share price has appreciated by 222%. It’s not all smooth sailings, 4DS is more volatile than 75% of Australian stocks over the past 3 months. 

More reading

• Why has the 4DS Memory (ASX:4DS) share price crashed 12% lower?
• 4DS Memory (ASX:4DS): Non-volatile memory, volatile share price

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sezzle Inc (ASX: SZL) share price is trading lower on Friday morning despite the release of an announcement.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 1% to $10.33.

Despite this decline, the Sezzle share price is still up a remarkable 65% since the start of the year.

What did Sezzle announce?

This morning Sezzle released an announcement relating to a new agreement with a payments giant.

According to the release, the company has signed an agreement with digital banking and payments services company, Discover.

The agreement will allow select US merchants on the Discover Global Network to offer their customers an interest-free BNPL option through Sezzle’s platform. Positively, the process will involve little to no upgrades to their existing payments systems.

The Discover Global Network has more than 48 million merchant acceptance locations and two million ATM and cash access locations around the world. Discover is accepted by 99% of places that take credit cards in the United States. Its brands also include Diners Club International and PULSE.

Agreement to accelerate business development

Sezzle’s Executive Director and President, Paul Paradis, believes the agreement will help accelerate business development.

He commented: “Our partnership with Discover will help to further accelerate our business development efforts by connecting our team with Discover and its established relationships.”

Discover’s Senior Vice President of Global Business Development and Acceptance, Jason Hanson, spoke positively about the agreement.

Mr Hanson said: “Our merchant partners are always a top priority and we know that providing them with additional payment options, such as a buy now, pay later structure, can be beneficial, especially in the current economic environment.”

“We are able to leverage our unique technology capabilities and vast network of merchant relationships to provide Sezzle the ability to grow its business and provide new payment opportunities,” he added.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Lovisa Holdings Ltd (ASX: LOV) shares are off to a flying start this morning after the company released its half-year financial report earlier today. In the opening minutes of trade, the Lovisa share price has rocked 19.09% higher to $13.10.

How did Lovisa perform?

Earlier today, the jewellery and accessories retailer released its financial report for the first half of FY21.

The Lovisa share price is soaring despite the company reporting a 26.7% decline in profit after tax of $19.6 million. Lovisa also reported a 9.8% fall in revenue of $146.9 million for the half-year.

Lovisa noted that same store sales fell 4.5% for the half year, with gross margins at 77.2% compared to 78.9% 12 months ago.

The jewellery chain cited that the first quarter was heavily impacted by government responses to the COVID-19 pandemic. Lovisa highlighted temporary store closures in Victoria and weakness in global markets as contributing to the company’s poor performance.  

Despite the dour financial results, Lovisa boasted a strong balance sheet for the half year with $42.5 million cash in hand. As a result, the company declared an interim dividend of 20 cents per share, up from 15 cents in the prior corresponding period.

What is the outlook for Lovisa?

Lovisa is a leading retailer in fashion jewellery, strategically targeting the affordable jewellery segment. The company currently boasts 460 stores in Australia and abroad, with notable locations in the United Kingdom, France and the United States.

The company did not provide an outlook or guidance for the full year. However, Lovisa’s management noted that the first seven weeks of the second half showed an improving sales trajectory. Lovisa highlighted a 12% increase in overall same store sales for the period.

The company also noted strength in Southern Hemisphere markets, whilst advising Northern Hemisphere stores faced challenging conditions.

In addition, Lovisa informed the market that its acquisition of the beeline retail business is expected to be completed in the coming months, accelerating the company’s European expansion.

Lovisa share price snapshot

Incorporating today’s gains, the Lovisa share price has now rallied 13% in year-to-date trading. Lovisa shares fell as low as $2.45 in March 2020 before surging more than 400% to their current levels.

Based on the current Lovisa share price, the company has a market capitalisation of around $1.2 billion. 

More reading

• This ASX growth share is cheap like a value stock

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Chemist Warehouse is taking a step closer to an initial public offering (IPO) in what could be the hottest float on the ASX in years.

Even investors who aren’t keen on participating should take note. The health of any bull market can be often be measured by the IPO market.

On that front, Chemist Warehouse is creating a buzz. The Australian Financial Review reported that it is preparing to send out a formal request for proposal to investment banks.

Chemist Warehouse could be the hottest ASX IPO in 2021

Interest is expected to be high given that the potential debutant is our country’s largest pharmacy chain with a turnover estimated at $5 billion.

The fees generated from the float for the lucky chosen investment bankers will be very substantial.

But investment bankers will have their work cut out for them. The ownership structure of the privately held Chemist Warehouse is messy even though current equity holders have undertaken a clean-up to prepare for the IPO.

Biggest ASX IPO since Medibank Private?

Investment banks will still need to put on their thinking caps to recommend how best to structure Chemist Warehouse for life as a public company.

It’s too early to tell what IPO price the pharmacy giant will fetch, but the AFR suggested it could be north of $5 billion.

Of course, that doesn’t say much. I believe an IPO candidate like Chemist Warehouse would list with a market cap multiple of more than one times its annual revenue. Of course, I am assuming it is profitable with only a modest amount of debt.

Assuming the valuation is above $5 billion, Chemist Warehouse could become the biggest ASX float since Medibank Private Ltd (ASX: MPL) in 2014.

Key question facing would be investors

The real question then is at what multiple can Chemist Warehouse attain? While it’s a household name and the industry leader by miles, investment banks handling the bookbuild will need to show the group still has multiple growth levers.

It’s a little harder to see where future growth will come from outside of organic growth in the sector. It could look overseas, but many Australian companies don’t have a good track record on this front.

According to IBIS World, My Chemist Retail Group (which owns Chemist Warehouse) commands 21.1% of the Australian market. That’s well ahead of other ASX-listed peers.

Sigma Healthcare Ltd (ASX: SIG) is the second largest at 16.8% of the market, while Australian Pharmaceutical Industries Ltd (ASX: API) holds 8.6%.

Chemist Warehouse was founded by Jack Gance and Mario Verrocchi. They started the company in 1995 with five outlets. This has grown to more than 300 stores employing 9,500 staff across the country today.

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• Here’s why the Medibank (ASX:MPL) share price is edging higher today

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The QBE Insurance Group Ltd (ASX: QBE) share price has come under pressure this morning.

At the time of writing, the insurance giant’s shares are down 1% to $8.63.

This means the QBE share price is now down 42% since this time last year.

Why is the QBE share price trading lower?

The QBE share price has fallen today following the release of its FY 2020 results.

For the 12 months ended 31 December, on a constant currency basis and adjusting for disposals, QBE reported a 10% increase in gross written premiums (GWP) to US$14,643 million.

Management advised that this reflects premium rate momentum, improved premium retention across all divisions, and strong new business growth in North America and International.

However, as it previously warned, this GWP growth could not stop the company from posting an enormous loss in FY 2020. QBE reported a loss after tax of US$1,517 million for the 12 months. This compares to a net profit after tax of US$550 million in FY 2019.

This loss includes a disappointing underwriting result, a significant reduction in investment income, impairment of goodwill and deferred tax assets in North America, and charges related to rationalisation of legacy IT platforms and its real estate footprint.

Also weighing on the QBE share price was its adjusted result. Excluding all the one-offs, on an adjusted basis, QBE’s recorded a net cash loss after tax of US$863 million. This compares to an adjusted net cash profit after tax of US$733 million a year earlier.

Unsurprisingly, given its significant loss, the QBE board has not declared a final dividend for FY 2020. 

Management commentary

QBE’s Interim CEO, Richard Pryce, was disappointed with the company’s performance in FY 2020, but appears positive about the year ahead.

He commented: “While obviously very disappointed with the headline loss, premium momentum accelerated across 2020 and has continued into 2021. Coupled with the improved positioning of the underlying business, we enter this year with confidence and optimism.”

“I look forward to leading the business in 2021; my primary focus remains performance improvement including that the Group takes full advantage of currently favourable market conditions by maximising premium rate increases while driving targeted growth in portfolios and regions offering the most profitable new business opportunities,” Mr Pryce added.

Outlook

Not even QBE’s outlook for FY 2021 could help drive the QBE share price higher today.

Based on several factors, such as assuming a normal crop result, QBE believes it exited FY 2020 with a combined operating ratio of ~95%. This compares to FY 2020’s actual combined operating ratio of 104.2%. (Anything below 100% is profit, whereas above is a loss.)

In light of this, at this stage, QBE is expecting margin expansion in FY 2021.

Also failing to give the QBE share price a boost today was news that dividend payments are likely to return this year.

The QBE board advised that, subject to global economic conditions not deteriorating materially, it expects to resume dividend payments of up to 65% of adjusted cash profits in FY 2021.

More reading

• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Fortnite developer Epic Games escalated its battle with Apple Inc (NASDAQ: AAPL) by filing an antitrust complaint in the European Union (EU) over the fees Apple takes for in-app purchases made from apps downloaded from its App Store.

Although the two will face off in court in May, Epic is making its war on Apple’s payment system a global affair, having filed similar lawsuits against it in the US, Australia, and the UK.

Last summer, Epic Games bypassed Apple’s fees by allowing Fortnite players to pay the developer directly for any in-app purchases. Apple’s cut of such payments typically runs as high as 30%.

Although many developers have chafed over the system, none took on Apple for fear of losing access to the platform. That’s part of the argument Epic is using in filing its lawsuit, writing in a blog post:

Apple has not just harmed but completely eliminated competition in app distribution and payment processes. Apple uses its control of the iOS ecosystem to benefit itself while blocking competitors and its conduct is an abuse of a dominant position.

Apple responded to the end run around its App Store fees by booting Epic Games from the platform, leading to lawsuits and countersuits. Epic is still unavailable from the App Store.

Apple argues the fees help the App Store remain secure, and Epic’s efforts at bypassing the system violate the guidelines that apply to all developers accessing the system.

Although Epic has suffered a significant loss of Fortnite players after being booted from the App Store and the iOS operating system, the video game developer says it’s not seeking to levy any monetary damages against Apple, only that fairness and competition be restored to the system.

Epic CEO Tim Sweeney said, “What’s at stake here is the very future of mobile platforms.”

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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