Epic Games had hoped to create a third-party app store that would be accessible to iPhone users in the 27-nation EU thanks to the Digital Markets Act (DMA), which opens it up to iPhone users in the EU. According to Bloomberg, Apple has blocked this move, preventing Epic from launching its own app store, and game developers say Apple is simply taking this action to get revenge on them for making comments criticizing Apple.
Earlier today, Apple shut down Epic’s developer account, calling the company “severely in violation” of the DMA. Apple had already shut down Epic’s developer account in the US and other markets in 2020 after the game developer distributed the popular Fortnite game on the App Store with a link to Epic’s own in-app payments platform. Epic’s actions violated App Store rules because this allowed Epic to bypass the 15 to 30 percent fee Apple takes for using its own platform to process in-app payments.
In 2020, Epic was pulled from the App Store for including this payment platform in Fortnite, in violation of App Store rules.
There was a flurry of litigation that resulted in Apple having to make it easier for developers to connect customers with third-party in-app payment platforms. But Epic isn’t allowed to force Apple to install the Epic App Store on iPhones. Apple has extended an olive branch to Epic by giving it developer accounts in the EU thanks to changes in the DMA. However, the account was shut down by Apple, and as mentioned at the beginning of this article, Epic blames CEO Tim Sweeney for criticizing Apple.
Of course, Epic is not happy with Apple shutting down its EU developer accounts today, and issued a statement saying, “By terminating Epic’s developer accounts, Apple is eliminating one of the biggest potential competitors to the Apple App Store. “It’s undermining their ability as a competitor, showing other developers what happens when they try to compete with Apple, or criticizing their unfair practices.”
Epic is also unhappy with the new fees Apple will charge certain developers. For example, core technology fees are charged when your iOS app is distributed on the App Store and/or alternative app marketplaces. Developers will pay €0.50 for each first install per year that exceeds the 1 million unit threshold. Epic CEO Sweeney describes Apple’s plan to comply with the DMA as “hot garbage” and a “horror show.”
Apple said today that it has the right to remove Epic’s “entities” from its platform because courts have previously ruled it was a “serious breach of contractual obligations” by the game developer. In a statement released today, Apple said: “In light of Epic’s past and present actions, Apple has decided to exercise those rights.”
