Apple has taken another aggressive move against Epic Games, the maker of the popular Fortnite video game, by terminating its developer account in Europe. This means Epic Games cannot launch its own online marketplace on iPhones and iPads in the region, where a new law requires Apple to allow third-party app stores on its devices.
Epic Games challenges Apple’s monopoly with its own store
Epic Games has been in a legal battle with Apple since 2020, when it accused the iPhone maker of violating U.S. antitrust rules by charging up to 30% commissions on in-app payments on its iOS devices. Epic Games tried to bypass Apple’s payment system by offering its own in-game currency, which led to Apple removing Fortnite from its App Store.
Epic Games then sued Apple in the U.S. and other countries, seeking to end Apple’s monopoly over the distribution and monetization of apps on its platform. Epic Games also launched a public relations campaign, mocking Apple’s iconic 1984 commercial and rallying its fans with the hashtag #FreeFortnite.
As part of its strategy, Epic Games planned to launch its own app store on iOS devices in Europe, where a new regulation called the Digital Markets Act (DMA) took effect this week. The DMA aims to prevent big tech companies from abusing their dominant position and stifling competition in the digital sector. It requires Apple to allow users to download apps from other sources than its own App Store, and to give developers access to the same technical and operational features as its own apps.
Epic Games hoped to use the DMA to bring back Fortnite and other games to iOS users in Europe, by offering them through its own store. It also wanted to challenge Apple’s dominance by providing a more attractive and fair alternative for developers and consumers.
Apple blocks Epic Games’ efforts, citing breach of contract
However, Apple did not let Epic Games execute its plan. On Wednesday, Apple terminated a new developer account that Epic Games had created in Sweden, where it intended to launch its store. Apple said that Epic Games was “verifiably untrustworthy” and had breached its contract by violating its App Store policies.
Apple also argued that the DMA did not apply to Epic Games, because it was not a legitimate app store provider, but a game developer that wanted to distribute its own products. Apple said that Epic Games was trying to exploit the DMA to gain an unfair advantage over other developers, and to avoid paying the fees that Apple charges for its services.
Apple’s decision effectively blocks Epic Games from releasing any apps on iOS devices in Europe, unless it complies with Apple’s rules and reinstates its original developer account. This means that Fortnite and other Epic Games titles will remain unavailable to millions of iOS users in the region, unless they use other methods such as cloud gaming or sideloading.
Epic Games appeals to EU regulators to enforce the DMA
Epic Games did not accept Apple’s move quietly. It issued a statement, accusing Apple of taking out one of its largest potential competitors and undermining its ability to be a viable competitor. It also said that Apple was showing other developers what happens when they try to compete with Apple or are critical of its unfair practices.
Epic Games called on the EU regulators to swiftly enforce the DMA and to ensure that Apple complies with its obligations. It said that the DMA was designed to prevent Apple from abusing its power and to create a level playing field for all app store providers. It also said that the DMA was in the interest of consumers, who deserve more choice and better prices.
Epic Games also pointed out that Apple was facing scrutiny and sanctions from other authorities around the world for its anti-competitive behavior. On Monday, the European Commission fined Apple 1.84 billion euros ($2 billion) for thwarting competition from music streaming rivals via restrictions on its App Store. This was Apple’s first ever penalty for breaching EU rules.
The legal battle between Apple and Epic Games is far from over, as both sides are preparing for a trial in the U.S. that is expected to start in May. The outcome of the case could have significant implications for the future of the app economy and the digital market.
