EU regulators probe Apple's latest Epic Games takedown
It's the latest development in a four-year fight between the two companies.
The European Union has entered the latest clash between Apple and Epic Games. Bloomberg reports that regulators will question Apple over its choice to ban Epic's developer account. The Fortnite creator claims this action prevents it from launching the Epic Games Store in Europe.
This escalation began when Epic CEO Tim Sweeney shared a post on X in January claiming that Apple was trying to thwart complying with the Digital Market Act (DMA) and calling much of its latest policy announcement "hot garbage." Apple's rules include meeting the company's Notarization requirements, paying a Core Technology fee (about 54 cents per install annually) after hitting the millionth download and showing proof of $1.1 million in credit that could be used for financial disputes. Supreme
A month after Sweeney's post, Apple sent a letter stating, "In plain, unqualified terms, please tell us why we should trust Epic this time." Sweeney responded that the company was "acting in good faith and will comply."
Apple seemingly had no trust in Epic and would not allow it to have a developer account. "Epic's egregious breach of its contractual obligations to Apple led courts to determine that Apple has the right to terminate 'any or all of Epic Games' wholly owned subsidiaries, affiliates, and/or other entities under Epic Games' control at any time and at Apple's sole discretion.' In light of Epic's past and ongoing behavior, Apple chose to exercise that right," the company said in a statement.
Sweeney's response was visual, to say the least, stating, "This is the medieval feudal lord, mounting the skulls of their former enemies on their castle walls," CNBC reports.
This disagreement is the latest in nearly half a decade of issues between the two companies — you could throw a dart at a board filled with fights in the tech industry (of which there are many) and still have a good chance of hitting an Epic Games and Apple face-off. The friction between the pair started in 2020 when a Fortnite update allowed gamers to buy digital coins through a direct payment feature, thus going around Apple's rule that iOS games use in-app purchases (giving them a 30 percent cut). Epic sued Apple, with California's Ninth Circuit Court ruling in favor of the game developer. The Supreme Court declined to take up the case, in which both Apple and Epic appealed the ruling (Epic claimed there were "legal errors" and that Apple had violated federal antitrust laws).
The EU's decision comes just as the DMA finally goes into effect. The new law states that "gatekeepers," such as Apple, Microsoft and Meta, can't favor their own systems or prohibit third party developers from interoperating with them. Apple could be forced to pay ten percent of its annual worldwide revenue if found in violation of the DMA and 20 percent if it's a repeat offender. Apple recently received its first fine from the EU, a €1.8 billion ($1.96 billion) charge for restricting competitors' music streaming apps.
