Apple blocks epic games from using iPhone tools as feud escalates
When the European Union passed a 2022 law to loosen Apple’s grip on the app economy, Fortnite maker Epic Games began making plans to launch a competing app store for developers.
But before that law could take effect this week, Apple has blocked Epic’s European subsidiary from using iPhone software tools, making it impossible for the game developer to create the Epic Games Store.
In Apple’s correspondence with Epic Games, the tech giant said that Epic had shown in the past that it was unwilling to follow Apple’s rules to protect the App Store and that it could not return to the Developer Program that supports it. Apple also objected to Epic’s criticism of Apple’s plans to comply with European tech competition law.
Apple’s move is the latest salvo in a long-running battle with Epic. In 2020, Epic broke App Store rules by encouraging customers to pay directly for features in Fortnite. Apple kicked Epic out of the App Store and Epic sued Apple for violating antitrust laws by requiring developers to use its payment system.
With the rejection of Epic’s access to developer tools in Europe, Apple is testing the limits of European tech competition law. The Digital Markets Act, which takes effect Thursday, requires Apple to offer app makers alternatives to selling software to iPhone and iPad users, including the ability to use alternative payment systems and competing app stores.
An Apple spokesperson said in a statement that “Apple has the right to terminate any of Epic’s games” and that this occurred due to Epic’s “blatant violation of its contractual obligations.”
Epic CEO Tim Sweeney said his company had invested billions of dollars in creating the Epic Games Store and would file a complaint with European regulators over Apple’s action.
“We view Apple’s decision to block us from competing as a blatant attempt to bring its leading competitor to its knees,” Mr. Sweeney said, adding: “This isn’t just about Epic versus Apple. The DMA is about ensuring consumers have the benefit of competition and better prices.”
In 2018, Epic Games launched a digital store to distribute games on PCs and other devices. The store currently takes a 12 percent commission for every game it sells, which is less than the 30 percent Apple typically collects.
Epic is one of the first app makers to complain that Apple is blocking competing app stores. But other developers have criticized Apple’s plans to comply with the Digital Markets Act and called on European Union regulators to investigate the tech giant.
Should the European Commission, the executive branch of the European Union, open a formal investigation into complaints from Epic or other developers, it could spark a protracted legal battle that could force Apple to make changes or face fines of up to 10 percent of global annual turnover. , which amounted to almost $400 billion last year.
An investigation would add to the challenges Apple faces regarding its App Store policies. On Monday, European Union regulators fined Apple 1.8 billion euros ($1.95 billion) for thwarting competition among streaming music rivals. Last year, South Korea’s telecommunications regulator said this Apple could be fined $15.4 million for ‘unfair practices’.
Apple’s dispute with Epic’s plans to create a competing app store in Europe began last month. Epic wrote to Apple that it planned to use its subsidiary in Sweden to bring the Epic Games Store and Fortnite to iPhones and iPads in Europe. Initially, Apple granted its subsidiary, Epic Games Sweden AB, a developer account, but later terminated the account.
In an email to Mr Sweeney: that Epic Games has posted on its websitePhil Schiller, head of the App Store, questioned Epic’s willingness to follow Apple’s rules. He said Epic deliberately violated Apple’s policies before filing a lawsuit in the United States, and that Mr. Sweeney had cited Apple’s plan to comply with European technology law ‘hot mess’ and a ‘horror show’.
“Your colorful criticism of our DMA compliance plan, coupled with Epic’s past practices of deliberately violating contractual provisions with which it disagrees, strongly suggests that Epic Sweden has no intention of following the rules,” Mr. Schiller wrote.
Mr. Sweeney responded that Epic “acted in good faith and will comply with all terms of any current and future agreements with Apple.”
A lawyer representing Apple later wrote to Epic Games to say that its Swedish subsidiary’s account had been terminated. Mr Sweeney said the correspondence was the entirety of Epic’s exchanges with Apple.