Apple has reversed its decision and approved Epic Games’ developer account in Sweden, granting the company permission to introduce a competing app store on iPhones in Europe under the new antitrust regulation, the Digital Markets Act (DMA).
Epic Games
Earlier this week, Epic Games CEO Tim Sweeney accused Apple of retaliating against the company for lawsuits and criticism on social media by blocking the Sweden account. Phil Schiller, Apple’s App Store chief, cited an email from Schiller to Sweeney regarding this matter.
Implications of Apple’s Reversal
This incident marks one of the initial challenges to the European DMA from major technology companies it regulates. Apple’s swift change of course raises questions about the effectiveness of the law’s fines and penalties in curbing targeted practices.
Response from Epic Games
Epic Games responded to Apple’s approval by stating, “This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable.”
Impact of the DMA on Apple’s App Store Policies
Before the European DMA, Apple’s App Store monopolized app installations on iPhones, charging a 30% fee for game purchases and 15% for most online subscriptions. The new regulation mandates Apple to allow third-party app stores on iPhones in Europe, albeit with a charge of half a euro per download, a pricing strategy criticized by app developers.
Regulatory Inquiry and Resolution
European regulators announced plans to interrogate Apple following Epic’s announcement. Sweeney later confirmed on social media that Apple permitted Epic Games to launch the store after a European Commission inquiry.
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Agreement Between Epic Games and Apple
Epic Games’ account was reinstated after the company assured Apple of compliance with its platform policies. An Apple spokesperson confirmed this, stating, “Following conversations with Epic, they have committed to follow the rules, including our DMA policies.”
Future Plans of Epic Games
Epic Games intends to utilize the account to release Fortnite for iPhones in Europe and establish its own Epic Games store.
Background of the Conflict
The conflict between Epic Games and Apple dates back to 2020 when Epic Games attempted to bypass Apple’s 30% cut of App Store sales by updating Fortnite. Apple responded by removing Fortnite from its stores, leading to Epic suing Apple in the U.S. to compel the opening of its platform.