Days after Fortnite maker Epic Games publicly complained that Apple had blocked it from launching a competing app store in Europe, technology companies say Apple has reversed course. Epic has announced that it will allow the plan to proceed.
The reversal highlights how Apple is changing its business operations to comply with new European technology competition laws. The law, the Digital Marketplace Act, which took effect Thursday, requires Apple to provide app makers with alternative ways to sell software to iPhone and iPad users, including competing app stores and This also includes the ability to use payment systems other than your own.
European regulators hope that by opening up the iPhone to competitors, smartphone users in the region will benefit from lower prices. Epic Games, which had planned to launch a competing app store, currently charges a 12% fee for each game it sells on PC and other platforms. This fee is less than half of the 30% that Apple typically collects.
“People ask, why do we need another app store?” said Justin Kang, one of the founders of video game streaming service Twitch and founder of Stash, an open payments platform for video game companies. talk. “But competition generally produces lower prices. Ultimately, he'll probably be good for Apple because it can grow the app market.”
Apple and Epic have been at odds for years over App Store fees. 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.
The feud has been reignited over European competition law. Epic was planning to launch a competing app store called Epic Games Store through a Swedish subsidiary. Initially, Apple granted a developer account to its subsidiary, Epic Games Wednesday AB, to give it access to the software tools needed for the release.
But Apple later suspended Epic's account, saying it couldn't trust Epic to follow its rules. Apple also complained that Epic CEO Tim Sweeney called Apple's plans to comply with new technology laws “hot garbage.”
Sweeney said Wednesday that Epic assured Apple that it would follow the rules. He also released an email in which he made such assurances directly to Apple.
An Apple spokesperson said Friday that Epic is committed to following its own rules, including its policies in Europe.
Sweeney said Apple changed its plans following a “prompt investigation” by European regulators. He called it “a huge victory for the rule of law in Europe, for the European Commission and for the freedom of developers around the world to have their voices heard.”