After the European Union passed a 2022 law loosening Apple's grip on the app economy, Fortnite maker Epic Games began planning to launch a competing app store for developers.
But before the law went into effect this week, Apple blocked Epic's European subsidiary from using iPhone software tools, making it impossible for game developers to create the Epic Games Store.
In a communication from Apple to Epic Games, the tech giant said in the past that Epic has no intention of following Apple's rules to protect the App Store and will not return to the developer program to support the App Store. He said he had shown that he could not. Apple also took issue with Epic's criticism of Apple's plans to comply with European technology competition laws.
Apple's move is the latest salvo in its long-running battle with Epic. In 2020, Epic broke App Store rules by encouraging customers to pay directly for Fortnite features. Apple banned Epic from the App Store, and Epic sued Apple for violating antitrust laws by requiring developers to use its own payment system.
By denying Epic access to developer tools in Europe, Apple is testing the limits of European technology competition law. The Digital Marketplace Act, which takes effect Thursday, requires Apple to provide app makers with alternative ways to sell software to iPhone and iPad users, including alternative payment systems and competing apps. This also includes the use of the store.
An Apple spokesperson said in a statement that Apple has the “right to terminate” Epic's games, citing Epic's “material breach of its contractual obligations.”
Epic CEO Tim Sweeney said the company had invested billions of dollars in creating the Epic Games Store and would file a complaint with European regulators about Apple's actions.
“We view Apple's decision to block our competition as a blatant effort to kneel down a powerful competitor,” Sweeney said. “This is not just an Epic vs. Apple issue.” added. The DMA aims to ensure competition and better price benefits for consumers. ”
In 2018, Epic Games launched a digital store to distribute games on PC and other devices. The store currently collects a 12 percent commission on each game it sells, which is less than the 30 percent that Apple typically charges.
Epic was one of the first app makers to complain that Apple was blocking competing app stores. But other developers criticized Apple's plans to comply with digital market laws and called on European Union regulators to investigate the tech giant.
If the European Commission, the European Union's executive arm, launches a formal investigation into complaints from Epic and other developers, it could start a long legal battle that could force Apple to change or force the entire world Fines of up to 10% of annual revenue can be imposed. , which was about $400 billion last year.
As the investigation progresses, it will further deepen the challenges Apple faces over App Store policies. European Union regulators on Monday fined Apple 1.8 billion euros ($1.95 billion) for obstructing competition between streaming music rivals. Last year, South Korea's telecommunications regulator announced it could fine Apple $15.4 million for “unfair conduct.”
Apple's dispute over Epic's plans to create a competing app store in Europe began last month. Epic wrote to Apple that it plans to use its Swedish subsidiary to bring the Epic Games Store and Fortnite to iPhones and iPads in Europe. Initially, Apple granted a developer account to its subsidiary Epic Games Wednesday AB, but later terminated the account.
In an email to Sweeney posted on Epic Games' website, App Store head Phil Schiller questioned Epic's willingness to play by Apple's rules. He said Epic intentionally violated Apple's policies before filing suit in the U.S. and that Sweeney insisted Apple's plans comply with European tech laws. “Hot Garbage” and “Horror Show”.
“Your colorful criticism of our DMA compliance plan, combined with Epic's past practice of intentionally violating contractual terms with which Epic does not agree, strongly suggests that Epic Sweden has no intention of playing by the rules. ” Schiller wrote.
Sweeney responded that Epic is “acting in good faith and will abide by all terms of its current and future agreements with Apple.”
Later, a lawyer representing Apple sent a letter to Epic Games informing them that the Swedish subsidiary's account had been suspended. Sweeney said this was the entirety of Epic's interactions with Apple.