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Apple prevents Epic Games from introducing a new app store for iPhones in Europe, intensifying conflict
Apple's rejection of Epic's proposal may lead to closer examination of its adherence to the DMA. This comes after Apple's recent changes to its app disbursement guidelines in response to suggestions, with the intention of meeting the DMA's standards.
Apple has prohibited Epic Games from obtaining a developer account needed to introduce a new app store on iPhones in Europe. Epic Games' CEO, Tim Sweeney, sees this move as a payback for Epic's antitrust activities, legal action against Apple, and criticism of Apple's App Store rules, according to a CNBC report.
The issue originates from a dispute that began in 2020 over Apple's 30% commission fees, prompting a legal action from 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, highlighting Epic's previous breaches of contract and continuing legal issues.
This conflict is taking place in the context of the European Union's Digital Markets Act (DMA), a fresh antitrust law designed to foster competition by permitting third-party application stores. Sweeney lambasted Apple's denial of a developer account to Epic, seeing it as a call for allegiance and a suppression of public criticism.
Apple's rejection of the application, which is the first known case of its kind, may spark a review of its adherence to the DMA. This event comes after recent changes to Apple's app distribution rules in response to feedback, with the goal of meeting the requirements of the DMA.
The argument arises as Margrethe Vestager, the EU's head of competition, underscores the DMA's concentration on app stores, giving priority to equitable opportunities for smaller app stores to work with operating systems.
Epic's confrontation with Apple comes at the same time as worries about lukewarm interest for iPhones in China, where Apple has experienced a 12% decrease in stock this year. Regulatory and competitor endeavors to set up competing platforms on Apple's products present a considerable risk to its earnings and dominance over its own ecosystem.
Legislators in Europe are obliging Apple to allow third-party marketplaces on their devices using the DMA. Meanwhile, antitrust authorities in Brussels have recently imposed a fine of €1.84 billion on Apple for preventing competition from music streaming competitors through App Store limitations, signifying the first time Apple has been penalized for violating EU regulations.
On Wednesday, Apple thwarted Epic's attempts to utilize the DMA, referencing previous contract violations in their continuing legal conflict.
(Incorporating information from various sources)
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