Apple vs Epic Games Escalates: The Battle for a New App Store in the EU and its Implications for DMA Compliance

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Apple prevents Epic Games from introducing a new app store for iPhones in the European Union, intensifying disagreement

Apple's rejection of Epic's proposal may trigger an examination of its adherence to the DMA. This advancement comes after Apple's latest modifications to its app distribution strategies, in response to comments, with the goal of meeting the DMA's demands.

Apple has prevented Epic Games from obtaining a developer account required to launch a new app store on iPhones in Europe. Epic Games CEO, Tim Sweeney, perceives this move as a payback for Epic's antitrust activities, legal action against Apple, and criticism of Apple's App Store rules, according to CNBC.

The disagreement originated in 2020 when Apple's 30% commission fee led to a lawsuit from Epic and subsequent changes in Apple's policies. During this controversy, Apple justified its decision to deny Epic's developer account application, referring to Epic's previous breaches of contract and continuous legal battles.

This conflict is happening in the context of the European Union's Digital Markets Act (DMA), a fresh competition law that encourages competition by permitting third-party app stores. Sweeney condemned Apple's denial to provide Epic with a developer account, perceiving it as a requirement for allegiance and refraining from public criticism.

Apple's rejection of the application, a move not previously seen, might trigger an examination of its adherence to the DMA's regulations. This comes after Apple made changes to its app distribution guidelines in response to feedback, with the intention of meeting the DMA's stipulations.

The argument arises as Margrethe Vestager, the EU competition head, underscores the DMA's concentration on app stores, prioritizing impartial access for smaller app stores to operating systems.

Epic's confrontation with Apple comes at a time when worries about lukewarm interest for iPhones in China are prevalent, with Apple experiencing a 12% drop in stock this year. The attempts by regulators and competitors to create competing platforms on Apple's devices could seriously impact its earnings and dominance over its ecosystem.

European legislators are implementing third-party marketplaces on Apple's gadgets via the DMA. Meanwhile, antitrust regulators in Brussels recently imposed a €1.84 billion fine on Apple for obstructing competition from music streaming competitors through App Store limitations. This is the first time Apple has been penalized for violating EU regulations.

On Wednesday, Apple thwarted Epic's attempts to exploit the DMA, referencing previous contract violations in their continuing legal battle.

(Incorporating information from various sources)

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