Apple reverses course and lets Epic Games compete with the App Store
Days after Epic Games, the maker of Fortnite, publicly complained that Apple had stopped the company from launching a competing app store in Europe, the tech companies said Apple had reversed course and would allow Epic to proceed with its plan.
The reversal highlights how Apple is changing its operations to comply with a new European technology competition law. That law, the Digital Markets Act, which went into effect Thursday, requires Apple to offer app makers alternatives to selling software to iPhone and iPad users, including the ability to use competing app stores and payment systems other than its own. to use.
By opening up the iPhone to rival stores, European regulators hope smartphone users across the region will benefit from lower prices. Epic Games, which planned to launch a competing app store, currently takes a 12 percent commission for every game it sells on PCs and other platforms. The fee is less than half of the 30 percent that Apple typically collects.
“People ask: why do you still need an app store?” said Justin Kan, one of the founders of the video game streaming service Twitch and the creator of Stash, an open payment platform for video game companies. “But competition generally leads to lower prices. Ultimately, it’s probably good for Apple because it could grow the app market.”
Apple and Epic have been feuding over the App Store commission for years. 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 law by requiring developers to use its payment system.
The feud flared up again in the wake of European competition law. Epic planned to launch a competing app store, the Epic Games Store, through a subsidiary in Sweden. Initially, Apple granted its subsidiary, Epic Games Sweden AB, a developer account so it could access the software tools needed for the release.
But Apple later terminated Epic’s account, saying it could not trust Epic to follow the rules. Apple also complained that Epic CEO Tim Sweeney had called Apple’s plan to comply with the new technology law “hot garbage.”
On Wednesday, Mr. Sweeney said he had assured Apple that Epic would follow the rules. He also released emails making these commitments directly to Apple.
An Apple spokesperson said Friday that Epic had committed to following its rules, including its policies in Europe.
Mr Sweeney said Apple changed its plan after a “rapid investigation” by European regulators. He called it “a major victory for the European rule of law, for the European Commission and for the freedom of developers worldwide to speak out.”