Responding to pressures from European regulators, Apple announced on Friday that it will allow Epic Games to establish its own game store on iPhones and iPads across Europe.
This development follows Apple’s initial attempt earlier in the week to prevent Epic from launching a new store and reinstating the popular game Fortnite, which was removed from the App Store in 2020. This removal came after Epic intentionally violated Apple’s in-app payment guidelines as part of a protest against the company’s policies.
Apple’s latest decision aligns with the European Union’s deadline imposed on Thursday for major tech companies to comply with the Digital Markets Act (DMA). This legislation aims to curb the ability of firms like Apple and Google to dictate the distribution of apps on their respective operating systems, iOS and Android.
Thierry Breton, the EU’s industry chief, publicly acknowledged Apple’s change of heart, stating that regulators had cautioned the company about its intent to block Epic’s return earlier this week. “I take note with satisfaction that following our contacts, Apple decided to backtrack its decision on Epic exclusion. From Day 2, #DMA is already showing very concrete results!” he shared on the X social media platform.
The ongoing legal dispute between Epic and Apple began in 2020 when Epic accused Apple of violating U.S. antitrust laws by imposing hefty commissions of up to 30 percent on in-app payments within its iOS ecosystem. Although Epic lost the initial court case, its decision to breach Apple’s regulations led to its exclusion from Apple’s devices.
Despite this breakthrough, Epic’s situation remains far from ideal. Epic CEO Tim Sweeney has voiced criticism over Apple’s interpretation of the DMA, which indicates that the tech giant may still retain the right to prohibit third-party app marketplaces in specific instances. Moreover, Fortnite continues to be unavailable in the App Store in the United States.
Meanwhile, Apple is facing challenges as its App Store business model experiences pressure, especially after informing investors that iPhone sales for the current quarter would fall significantly short of Wall Street’s projections.
The recent disagreement between the two companies centered around Apple’s developer accounts. Typically a minor procedural hurdle for developers, this served as a flashpoint in their ongoing dispute. On Friday, Apple reinstated Epic’s developer account, two days after blocking the company from initiating its online marketplace on Apple devices in Europe.
In response, Epic Games has confirmed plans to advance with the launch of its Epic Games Store and the return of Fortnite to iOS in the European market. “This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable,” Epic Games stated.
Earlier this week, Apple had indicated that it had terminated Epic’s account due to uncertainties about the company’s commitment to adhering to the new regulations that Apple is trying to implement for DMA compliance. “Following conversations with Epic, they have committed to follow the rules, including our DMA policies. Epic Sweden AB has been permitted to re-sign the developer agreement and accepted into the Apple Developer Program,” Apple commented in a statement.
© Thomson Reuters 2024
