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Apple prevents Epic Games from introducing a new application store for iPhones in the EU, intensifying the conflict
Apple's rejection of Epic's request might lead to an examination of its adherence to the DMA. This move comes after Apple made recent changes to its app distribution rules in response to suggestions, with a goal to meet the requirements of the DMA.
Apple has prevented Epic Games from obtaining a developer account that would allow them to launch a new app store on iPhones in Europe. The CEO of Epic Games, Tim Sweeney, perceives this move as a backlash from Apple, in response to Epic's antitrust activities, legal action against Apple, and criticism of Apple's App Store regulations, according to CNBC.
The disagreement originated in 2020 over Apple's 30% commission charges, which led Epic to sue them and prompted policy changes from Apple. In the midst of this quarrel, Apple justified their refusal to approve Epic's developer account application, pointing out Epic's previous breaches of contract and current legal battles.
This conflict unfolds amidst the European Union's introduction of the Digital Markets Act (DMA), a fresh antitrust legislation designed to encourage competition by permitting third-party app stores. Sweeney took issue with Apple's denial of a developer account for Epic, viewing it as a call for allegiance and a prohibition on public criticism.
Apple's rejection of the application, which is the first reported case, might lead to an examination of its adherence to the DMA. This situation comes after Apple made changes to its app distribution rules based on feedback, with the goal of meeting the DMA's standards.
The argument arises as Margrethe Vestager, the EU's head of competition, highlights the DMA's attention to application stores, giving priority to equitable access for minor app stores to operating systems.
Epic's confrontation with Apple happens at the same time as worries about lukewarm interest for iPhones in China, with Apple experiencing a 12% decrease in stock this year. The efforts of regulators and competitors to create competing platforms on Apple's devices could drastically impact its earnings and dominance over its network.
The Digital Markets Act (DMA) is being used by European legislators to impose third-party marketplaces on Apple's devices. Meanwhile, the competition authorities in Brussels have recently penalized Apple with a fine of €1.84 billion. This is due to the company's use of App Store restrictions to hinder its music streaming competitors, a move that constitutes Apple's first violation of EU regulations.
On Wednesday, Apple thwarted Epic's attempts to exploit the DMA, referring to previous contract violations in their continuing legal conflict.
(Incorporating information from various sources)
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