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Apple prevents Epic Games from introducing a new app store for iPhones in the EU, intensifying dispute
Apple's rejection of Epic's proposal may lead to a closer examination of its adherence to the DMA. This comes after Apple made recent changes to its app distribution rules in response to critiques, with the aim of meeting the DMA's standards.
Apple has prohibited Epic Games from obtaining a developer account that would enable them to launch a new app store on iPhones in Europe. According to CNBC, Epic Games CEO Tim Sweeney perceives this move as a payback for Epic's antitrust activities, its legal action against Apple, and its criticism of Apple's App Store guidelines.
The issue originates from a dispute that began in 2020 concerning the 30 percent commission fees imposed by Apple, which led to a lawsuit filed by Epic and subsequent policy changes from Apple. In the midst of this disagreement, Apple justified their decision to deny Epic's request for a developer account, referring to Epic's previous breaches of contract and continuing legal battles.
This conflict takes place amidst the introduction of the European Union's Digital Markets Act (DMA), a fresh legislation focused on fostering competition through the provision of third-party app stores. Sweeney lambasted Apple's denial to provide Epic with a developer account, viewing it as a requirement for allegiance and refraining from openly criticizing.
Apple's rejection of the application, which is the first recorded case, might lead to an examination of its adherence to the DMA. This event comes after Apple's recent changes to its app distribution rules based on received feedback, with the objective to meet the DMA's stipulations.
The disagreement arises as Margrethe Vestager, the EU's competition head, underscores the DMA's concentration on app stores, giving importance to equitable opportunities for smaller app stores within operating systems.
Epic's dispute with Apple happens at a time when worries are mounting over lackluster demand for iPhones in China, alongside Apple experiencing a 12% drop in their stock this year. Attempts by regulators and competitors to create competing platforms on Apple's devices could substantially jeopardize its earnings and dominance over its own network.
The DMA is being utilized by European legislators to impose third-party marketplaces on Apple's devices. Recently, antitrust regulators in Brussels imposed a fine of €1.84 billion on Apple. This was due to Apple's hindrance of competition from music streaming competitors through App Store limitations, constituting the first time Apple has violated 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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