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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 proposal could lead to an examination of its adherence to the DMA. This recent change comes after Apple modified its app distribution rules based on suggestions, with the goal to comply with DMA's stipulations.
Apple has prevented Epic Games from obtaining a developer account needed to launch a new app store on iPhones in Europe. Epic Games CEO Tim Sweeney perceives this move as a response to Epic's antitrust activities, legal action against Apple, and criticism of Apple's App Store rules, according to CNBC.
The dispute originated from a 2020 controversy over Apple's 30% commission charges, which led to a legal action initiated by Epic and subsequent policy changes by Apple. In the midst of this contention, Apple justified its denial of Epic's request for a developer account, referring to Epic's previous breaches of contract and continuing legal altercations.
This confrontation takes place 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, viewing it as a requirement for allegiance and a prohibition on public criticism.
The rejection of the application by Apple, which is the first known case, could lead to an examination of its adherence to the DMA. This situation comes after Apple made recent changes to its app distribution rules following feedback, with the goal of meeting the demands of the DMA.
The disagreement arises as Margrethe Vestager, the EU's head of competition, stresses the DMA's attention on app stores, ensuring that smaller app stores receive equal opportunities to access operating systems.
Epic's opposition to Apple comes at a time when worries about lukewarm iPhone demand in China are prevalent, with Apple experiencing a 12% decrease in stock value this year. The attempts by regulators and competitors to create competitive markets on Apple's devices represent a serious risk to its earnings and dominance over its platform.
European legislators are imposing third-party marketplaces on Apple's devices via the DMA. Meanwhile, antitrust authorities in Brussels have recently penalized Apple with a fine of €1.84 billion. This punishment was for blocking competition from music streaming competitors through App Store limitations, and it signifies Apple's initial violation of EU regulations.
On Wednesday, Apple thwarted Epic's attempts to utilize the DMA, referring to previous contract violations in their continuing legal conflict.
(Incorporating information from various sources)
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