When the European Union passed a 2022 law to relax Apple’s mercy in the app economy, Epic Games, the maker of Fortnite, began planning to launch a competing app store for developers.
But before that law goes into effect this week, Apple has barred Epic’s European subsidiary from using iPhone software tools, making it impossible for the game developer to set up the Epic Games Store.
In correspondence from Apple to Epic Games, the tech giant said that Epic had previously shown that it was unwilling to follow Apple’s rules to protect the App Store and that it could not return to the Developer Program that supports it. Apple also objected to Epic’s criticism of Apple’s plans to comply with European technology competition law.
Apple’s move is the latest leap in a long-running battle with Epic. In 2020, Epic broke App Store rules by encouraging customers to pay it directly for features in Fortnite. Apple kicked Epic out of the App Store, and Epic sued Apple for violating antitrust laws by requiring developers to use its payment system.
By denying Epic access to developer tools in Europe, Apple is testing the limits of European technology competition law. The Digital Markets Act, which takes effect Thursday, requires Apple to provide app makers with alternatives to selling software to iPhone and iPad users, including the ability to use alternative payment systems and competing app stores.
An Apple spokesperson said in a statement that “Apple has the right to terminate” any of Epic’s games and that it did so due to “Epic’s flagrant breach of its contractual obligations.”
Tim Sweeney, Epic’s chief executive, said his company had invested billions of dollars to build the Epic Games Store and would file a complaint with European regulators about Apple’s action.
“We see Apple’s decision to prevent us from competing as a blatant attempt to bring its top competitor to its knees,” Mr. Sweeney said, adding, “This is not just about Epic versus Apple. The DMA is about ensuring consumers have the benefit of competition, the best prices.”
In 2018, Epic Games launched a digital store to distribute games on PC and other devices. The store currently takes a 12 percent commission on each game it sells, which is less than the 30 percent Apple typically collects.
Epic is among the first app makers to complain that Apple is blocking competing app stores. But other developers criticized Apple’s plans to comply with the Digital Markets Act and called on European Union regulators to investigate the tech giant.
If the European Commission, the European Union’s executive arm, launches a formal investigation into complaints by Epic or other developers, it could set up a lengthy legal battle that could force Apple to change or risk fines of up to 10 percent hundred of its worldwide annual revenue. , which was nearly $400 billion last year.
An investigation will delve into the challenges facing Apple regarding its App Store policies. On Monday, European Union regulators fined Apple 1.8 billion euros ($1.95 billion) for hindering competition among music streaming rivals. Last year, South Korea’s telecommunications regulator said it might fine Apple $15.4 million for “unfair practices.”
Apple’s dispute over Epic’s plans to create a competing app store in Europe began last month. Epic has written to Apple saying it plans to use its subsidiary in Sweden to bring the Epic Games Store and Fortnite to iPhones and iPads in Europe. Apple initially granted the subsidiary, Epic Games Sweden AB, a developer account, but later closed the account.
In an email to Mr. Sweeney, which Epic Games posted on its website, Phil Schiller, who heads the App Store, questioned Epic’s willingness to follow Apple’s rules. He said Epic deliberately violated Apple’s policies before suing in the United States, and that Mr. Sweeney had called Apple’s plan to comply with European technology law “hot trash” and “horror show”.
“Your colorful criticism of the DMA compliance plan, combined with Epic’s past practices of willfully violating contractual provisions with which it disagrees, strongly suggests that Epic Sweden does not plan to play by the rules,” Mr. Schiller wrote .
Mr. Sweeney responded that Epic was “acting in good faith and will comply with all terms of current and future agreements with Apple.”
A lawyer representing Apple later wrote to Epic Games to say that its subsidiary’s account in Sweden had been terminated. Mr Sweeney said the correspondence was the entirety of Epic’s exchange with Apple.
