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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 may lead to a review of its adherence to the DMA. This situation comes after Apple made recent changes to its app sharing rules in response to critiques, with the goal 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 perceives this move as a reprisal for Epic's monopoly-related legal actions, lawsuit against Apple, and criticisms of Apple's App Store rules, according to CNBC.
The dispute originates from a disagreement that began in 2020 over Apple's 30% commission fees, which led to a legal action by Epic and subsequent policy changes by Apple. During this controversy, Apple justified its decision to deny Epic's request for a developer account, referring to Epic's previous breaches of contract and ongoing legal battles.
This disagreement is taking place in the context of the European Union's Digital Markets Act (DMA), a fresh antitrust legislation designed to encourage competition by permitting third-party app stores. Sweeney reproached Apple for not giving Epic a developer account, viewing it as a call for allegiance and restraint on public criticism.
Apple's rejection of the application, a first for the company, may lead to a review of its adherence to the DMA. This comes after Apple's recent changes to its app distribution guidelines, made with the intent of meeting the DMA's stipulations, based on received suggestions.
The disagreement arises as Margrethe Vestager, the EU's head of competition, highlights the Digital Markets Act's concern with app stores, ensuring smaller app stores have equal opportunities to access operating systems.
Epic's dispute with Apple comes at a time when there are worries about lukewarm interest for iPhones in China, coupled with Apple's stock dropping 12% this year. Regulatory actions and competition trying to set up competing platforms on Apple's devices could seriously dent its earnings and authority over its own ecosystem.
European legislators are implementing regulations on third-party marketplaces on Apple's devices using the DMA. Meanwhile, antitrust regulators in Brussels have recently levied a €1.84 billion fine against Apple for obstructing competition from music streaming competitors through App Store limitations. This represents the first time Apple has been penalized for violating EU laws.
On Wednesday, Apple thwarted Epic's attempts to utilize the DMA, referencing previous contract violations amidst their continuous legal conflict.
(Incorporating information from various sources)
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