The other day, Apple released iOS 17.4, giving users the ability to download apps and games from third-party app stores — Epic was also preparing its own alternative, but due to the blocking of the developer’s account, the plans have been postponed for now.
Epic called Apple’s decision a violation of the DMA (EU Digital Markets Act) and believes that the company wants to prevent “serious competition”. Apple said that Epic was “verified to be unreliable” (interestingly, the developer account for the creator of Fortnite was restored only earlier this year and no complaints were made then).
At the same time, Epic CEO Tim Sweeney was particularly vocal about the changes introduced to the App Store at the request of the EU, and called them “a new example of harmful compliance.” He noted that technically Apple follows the DMA, but in reality “its scheme is anti-competitive and loaded with new junk download fees”, which significantly reduces the value of third-party app stores.
The claims are not unfounded: developers must receive approval from Apple to launch the store and comply with strict moderation rules; in addition, they must pay a “core technology” fee if the app is downloaded more than a million times (about 54 cents per install annually); and submit a letter from a financial institution confirming that they have access to at least $1.1 million in credit to resolve potential financial disputes. There is also a fixed commission on each transaction, which ranges from 15 to 30%.
After Sweeney publicly complained about the new rules for app stores, Apple’s Phil Schiller sent Epic Games an email asking for “written assurances” that the company would honor its commitments.
“Simply put, please tell us why we should trust Epic this time,” the letter reads.
Sweeney responded that “Epic and its subsidiaries are acting in good faith and will abide by all terms of current and future agreements with Apple and are happy to provide any specific additional assurances.” However, the answer, judging by the blocking, did not satisfy Apple.
Epic says the decision undermines its “ability to be a viable competitor” and that Apple is “showing other developers what will happen to competitors.” The developer calls the ban “retaliation against Epic for speaking out against Apple’s unfair and illegal practices.”
Apple’s statement, meanwhile, refers to “Epic’s flagrant breach of its contractual obligations.” The iPhone maker goes on to say that it has “the right to terminate the operations of any or all subsidiaries or affiliates and/or other entities wholly owned or controlled by Epic Games at any time and in its sole discretion. In light of Epic’s past and current conduct, Apple has decided to exercise this right.”
Despite all of this, Epic still plans to bring Fortnite to iOS — likely through an unaffiliated third-party app store. In addition, Apple Vision Pro provides experimental support for the Unreal Engine game engine.
- The conflict between Apple and Epic started in 2020, when the latter added its own payment system for Fortnite’s virtual currency and bypassed the 30% commission for purchases in the App Store. Apple closed Epic’s access to its app store – and in response it filed an antitrust lawsuit.
- In 2021, Judge Yvonne Gonzalez Rogers dismissed Epic’s lawsuit against Apple, but found that the latter violated California’s unfair competition law by prohibiting developers from “directing” users to make digital purchases that bypass the App Store’s payment system. The 9th U.S. Circuit Court of Appeals in San Francisco upheld most of Rogers’ decisions in 2023.
- The case eventually reached the Supreme Court, but both appeals were dismissed. The Justice Department is reportedly considering its own antitrust case against Apple.
Source: Engadget
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