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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 might lead to an investigation of its adherence to the DMA. This comes after Apple's recent changes to its app distribution rules in response to criticism, with the goal of complying with the DMA's rules.
Apple has prevented Epic Games from obtaining a developer account that would allow them to introduce a new app store on iPhones in Europe. According to CNBC, Epic Games' CEO Tim Sweeney perceives this move as a backlash against Epic's antitrust activities, legal action against Apple, and criticism of Apple's App Store rules.
The disagreement originates from a dispute in 2020 over Apple's 30 percent commission charges, which led to a legal action by Epic and subsequent changes in policy by Apple. In the midst of this argument, Apple justified its refusal of Epic's request for a developer account, pointing out Epic's previous breaches of contract and persistent legal issues.
This conflict takes place in the context of the European Union's Digital Markets Act (DMA), a fresh antitrust legislation that seeks to foster competition by permitting third-party app stores. Sweeney took a jab at Apple's denial to provide Epic with a developer account, viewing it as a call for allegiance and discretion on public criticism.
Apple's rejection of the application, a first known case of its kind, might lead to an examination of its adherence to the DMA. This comes after Apple's recent modifications to its app distribution rules based on input, with the goal of meeting the DMA's stipulations.
The conflict arises as Margrethe Vestager, the head of EU competition, stresses the DMA's concentration on app stores, giving priority to equitable opportunities for smaller app stores within operating systems.
Epic's confrontation with Apple comes at a time when worries about weak iPhone demand in China are on the rise, contributing to a 12% decrease in Apple's stock this year. The attempts by regulators and competitors to create competing platforms on Apple's devices could significantly jeopardize its profits and its dominance over its own ecosystem.
Legislators in Europe are mandating third-party marketplaces on Apple's devices by implementing the DMA. Also, antitrust authorities in Brussels recently penalized Apple with a €1.84 billion fine for hampering competition amongst music streaming competitors by imposing restrictions on the App Store. This incident marks 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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