The tension between Apple and Epic Games took a new dimension today with the news that Apple terminated Epic Games’ developer account.
It calls into question Apple’s monopoly position in the App Store and the potential impact of the Digital Markets Act (DMA) on the app economy. Here are all the details…
Apple terminates Epic Games developer account: Why?
Tensions between Apple and Epic Games began in 2020 when Epic added an in-app payment system to the iOS version of Fortnite. Epic’s addition of the payment system violated Apple’s 30 percent commission rule in the App Store. Epic argued that Apple’s commission was unfair and that app developers should be able to offer alternative payment systems.
Apple’s reaction
Apple removed Fortnite from the App Store for violating Epic’s rules. Epic filed an antitrust lawsuit against Apple, criticizing the App Store’s monopoly position. It was noteworthy that Epic characterized Apple’s App Store as a “digital extortion.”
DMA and Epic’s response
The European Union has adopted the DMA, which aims to limit Apple’s monopoly on the App Store. The DMA allows app developers to offer alternative payment systems and download apps from sources other than the App Store. Epic called the acceptance of the DMA a victory and announced plans to bring Fortnite back to iOS devices in the EU. On the other hand, Apple objected to parts of the DMA and argued that it would weaken the app’s monopoly.
Account termination and backlash
Apple announced today that it has terminated Epic Games Sweden AB’s iOS developer account. Apple argues that Epic has previously breached its agreements and deliberately broken its rules. On the other hand, Epic argues that Apple’s decision is a “serious violation of the DMA” and demonstrates its intention to “allow true competition on iOS devices“. “Apple is eliminating one of the Apple App Store’s biggest potential competitors“, Epic Games CEO Tim Sweeney said in a statement on X.
Many folks on here think of me as an Apple hater. Nothing could be further from the truth. There is no other group of designers and engineers on earth who can build as great products as Apple when they are directed towards that end. The woes begin when they are directed not to.
— Tim Sweeney (@TimSweeneyEpic) February 26, 2024
Does Apple’s decision to terminate Epic’s account comply with the DMA? In what way did Epic violate Apple’s rules? How will this dispute between Apple and Epic affect the app economy?
More information about the case
Apple decided to terminate Epic’s account on the grounds that Epic had breached its agreements in the past and intentionally broke its rules. Apple also cited Epic’s characterization of DMA as “hot garbage” and its defense that Apple has a “strong monopoly“.
Epic argues that Apple’s decision is a “serious violation of the DMA” and demonstrates an intent to “allow true competition on iOS devices“. Epic argues that Apple’s commission is unfair and that app developers should be able to offer alternative payment systems.
The dispute between Apple and Epic is expected to impact the app economy significantly. It will likely weaken Apple’s monopoly position in the App Store and provide more options for app developers.
Final thoughts
The tension between Apple and Epic Games is critical to the future of the App Store and the app economy. Implementing the DMA and weakening Apple’s monopoly position could provide app developers with more choice and a fairer environment. Who will win this tug-of-war? Time will tell.
Featured image credit: Robin Ooode / Unsplash
