On Wednesday, Epic Games CEO Tim Sweeney announced that Apple had rejected their application for a developer account, which is required to launch their app store in Europe.
Sweeney claims that this move is retaliation against Apple, resulting from Epic’s antitrust lobbying efforts and ongoing lawsuit.
He cited emails from Phil Schiller, the head of the Apple App Store, and Apple’s legal team.
Sweeney expressed his displeasure with Apple’s actions, saying, “The manner in which Apple is going about killing Epic here as a competitor to the App Store is super egregious. This is the medieval feudal lord, mounting the skulls of their former enemies on their castle walls.”
This is the first known instance of Apple denying a competing app store entry in Europe.
The conflict between Apple and Epic Games dates back to 2020
The complaint questioned whether Fortnite could go around Apple’s App Store restrictions and avoid the customary 30% commission on game purchases. Although Epic lost the case, the lawsuit changed Apple’s practices under California law. This protracted debate highlights potential regulatory hurdles to Apple’s App Store revenue. An Apple spokesman has defended the company’s decision to terminate the account, citing Epic’s continuous legal actions against Apple.
“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 spokesperson quoted.
In response to the Digital Markets Act, a new European rule requiring big internet companies to expose their platforms to competitors, Apple has begun compliance. This regulation mandates Apple to allow third-party app shops in Europe, thereby undermining the iPhone App Store’s monopoly. Apple has indicated its objection to the measure, citing worries about user security.
Spotify challenges Apple, cites 50-Euro download fee as against EU law’s spirit
Companies such as Spotify also contend that Apple’s initiatives are inconsistent with the spirit of EU law, citing the addition of a 50-euro price for downloads as an example. Sweeney indicated that Epic intended to build a new app store in Europe. The studio filed for a developer account in Sweden but was rejected by Apple.
Despite public actions and statements, Schiller emailed Sweeney requesting written assurance of Epic’s good faith and commitment to their agreements. Sweeney criticized Apple’s vague demands, saying, “This is an open-ended invitation for Apple to tell us exactly what they want us to commit to, and how they want us to commit to it to not lock us as a competitor.”
He also suggested that Apple’s expectations included a written declaration of loyalty and a cessation of public discourse, stating, “Based on my interactions with Apple, they want two things. They want some sort of essay expressing fealty to Apple, a creative writing project, and they want us to shut up.”