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Apple prevents Epic Games from introducing a new app store for iPhones in the EU, intensifying conflict
Apple's rejection of Epic's request may lead to an examination of its adherence to the DMA. This situation comes after Apple's recent modifications to its app distribution rules in response to suggestions, with the goal of complying with the DMA's stipulations.
Apple has prevented Epic Games from obtaining a developer account which is needed to open a new app store on iPhones in Europe. Epic Games' CEO Tim Sweeney perceives this move as payback for Epic's legal actions against Apple, including an antitrust lawsuit and criticisms of the policies of Apple's App Store, according to CNBC.
The feud originates from a dispute that started in 2020 over Apple's 30 per cent commission charges, leading to a legal action by Epic and subsequent policy changes by Apple. In the midst of this controversy, Apple justified its refusal to approve Epic's request for a developer account, pointing to Epic's previous breaches of contract and continuing legal battles.
This conflict takes place in the context of the European Union's Digital Markets Act (DMA), a fresh antitrust legislation designed to encourage competition by permitting third-party app stores. Sweeney condemned Apple's denial to provide Epic with a developer account, viewing it as a call for allegiance and a prohibition on public criticism.
Apple's rejection of the application, the first time we know of, might lead to examination of its adherence to the DMA. This situation comes after Apple's recent changes to its app distribution rules in response to comments, intending to match the requirements of the DMA.
The argument arises as Margrethe Vestager, the head of EU competition, emphasizes the importance of the DMA's focus on app stores, giving priority to equal access for smaller app stores to operating systems.
Epic's dispute with Apple is happening at the same time as worries about lackluster demand for iPhones in China, with Apple experiencing a 12% drop in its stock value this year. The attempts by regulators and competitors to create alternative marketplaces on Apple's devices could seriously harm its profits and dominance over its own platform.
The DMA is being utilized by European legislators to implement third-party marketplaces on Apple's devices. Meanwhile, antitrust authorities in Brussels have recently imposed a fine of €1.84 billion on Apple for hindering competition from music streaming competitors through App Store limitations, which constitutes Apple's initial penalty for violating EU regulations.
On Wednesday, Apple hindered Epic's attempts to take advantage of the DMA, referring to previous contract violations in their continuing legal conflict.
(Incorporating information from various sources)
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