In a significant turn of events influenced by European regulators, Apple eased its stance in its ongoing dispute with Epic Games, thereby allowing Epic to introduce its own game store on iOS devices within Europe.
This development came after Apple had previously taken measures to prevent Epic from establishing a store and reincorporating Fortnite, a game Apple expelled from its App Store in 2020 due to Epic’s violation of the in-app payment guidelines as a form of protest.
Apple’s pivot aligns with the enforcement of the European Union’s Digital Markets Act (DMA), which as of Thursday mandates that large technology firms, including Apple and Google, cannot monopolize app distribution on iOS and Android platforms.
EU industry chief Thierry Breton acknowledged Apple’s reversal following an earlier admonishment over blocking Epic, celebrating the immediate impact of the DMA: “I take note with satisfaction that following our contacts Apple decided to backtrack its decision on Epic exclusion. From Day 2, #DMA is already showing very concrete results!”
The feud between Epic and Apple has been contentious since 2020, stemming from Epic’s lawsuit against Apple for its up to 30% commission fees on iOS in-app payments, challenging U.S. antitrust regulations.
Despite Epic’s loss in court and its subsequent ban from Apple devices for flouting rules, the recent decision marks a partial triumph for Epic, though its broader ambitions with Apple remain unfulfilled.
Epic CEO Tim Sweeney has expressed dissatisfaction with Apple’s interpretation of the DMA, particularly Apple’s assertion that it can still restrict third-party app marketplaces under certain conditions.
Moreover, Fortnite continues to be absent from the App Store in the United States.
Concurrently, Apple confronts challenges to its App Store model and anticipates a decline in iPhone sales, deviating from Wall Street’s forecasts.
The friction extended to Apple’s handling of developer accounts, a typically routine aspect of app distribution.
However, Apple reinstated Epic Games’ developer account shortly after initially blocking it, enabling Epic to proceed with reintroducing the Epic Games Store and Fortnite in Europe.
This move is seen as a demonstration of the European Commission’s commitment to enforcing the DMA and regulating digital gatekeepers.
Apple’s statement acknowledged the re-engagement with Epic, citing Epic’s assurance to adhere to DMA regulations and Apple’s policies, leading to Epic Sweden AB’s reintegration into the Apple Developer Program.
This case underscores the evolving dynamics of app distribution and the regulatory landscape shaping the digital marketplace in Europe.