Apple Accused of Retaliation by Epic Games Over Termination of Developer Account
The ongoing feud between Apple and Epic Games has taken a new turn, with Epic Games accusing the tech giant of retaliatory action. Epic Games claims that Apple’s recent termination of its developer account for Sweden is a direct response to the criticism it has faced. This move comes as a blow to Epic Games, as it had plans to launch the Epic Games Store and Fortnite on iOS devices in Europe using this account. Apple’s decision to terminate the account just weeks after its approval has undermined Epic Games’ endeavors.
This clash between the two companies stems from Apple’s 2020 move to remove Fortnite and other Epic titles from its App Store following Epic Games’ antitrust lawsuit. Epic Games argues that Apple’s termination of its developer account goes against the European Union’s Digital Markets Act (DMA) regulations. The DMA requires big tech companies like Apple to allow the installation and use of third-party app stores on their platforms, a policy that Epic Games contends Apple is deliberately ignoring.
Apple, however, cites a 2021 U.S. district court ruling from Epic’s antitrust lawsuit to justify its actions. The ruling supports Apple’s right to terminate its agreement with Epic or any of its subsidiaries at its discretion. Apple asserts that its decision was influenced by what it describes as “Epic’s egregious breach of its contractual obligations.” The tech giant emphasizes its firm stance against Epic Games’ actions.
Evidence provided by Epic Games suggests that another reason for the termination was the company’s public criticism of Apple’s compliance plan with the DMA. Epic Games CEO Tim Sweeney openly criticized Apple’s app store monopoly and other practices, which may have contributed to Apple’s decision. Epic Games maintains that Apple’s actions are retaliatory and exemplify its unfair and illegal practices. These practices discourage developers from utilizing third-party app stores due to the risk of being disconnected from their audience.
Epic’s lawsuit against Apple aimed to challenge the tech giant’s monopolistic behavior, specifically targeting the 30% cut Apple takes on in-app purchases and the prohibition of alternative payment methods. While the lawsuit resulted in a ruling against Epic Games for the most part, Apple was ordered to allow developers to promote alternative payment options within their iOS apps. In a related development, Apple was fined approximately $1.95 billion by the European Commission for abusing its market dominance in the distribution of music streaming apps on iOS devices. This case was prompted by a complaint from Spotify, which highlighted the restrictions that prevented developers from directing users to cheaper subscription services outside of the apps. Apple has announced its intention to appeal this decision.
Analyst comment
Negative news for Apple and Epic Games. The termination of Epic Games’ developer account by Apple is seen as retaliatory and a blow to Epic Games’ plans for launching the Epic Games Store and Fortnite on iOS devices in Europe. This ongoing feud between the companies raises concerns about Apple’s compliance with the European Union’s Digital Markets Act regulations. Apple’s actions may discourage developers from using third-party app stores. A district court ruling supports Apple’s decision, but Epic Games argues against Apple’s monopolistic practices. The fine imposed on Apple by the European Commission adds to the negative sentiment.
