The tech giant and games developer heading for a showdown
Tech titan Apple has been having a bumper year with an array of new product lines, but they recently took action against Epic Games, canceling its developer account for the second time, citing the game developer’s public criticism as a contributing factor. This move raised eyebrows and drew attention from the European Commissioner, who oversees the executive branch of the European Union, suggesting that such actions may violate the law.
The conflict between Epic Games and Apple began when Epic introduced its own in-app payment system, attempting to circumvent Apple’s 30% commission on transactions. In response, Apple closed Epic’s developer account, leading to legal proceedings in the United States. As a result of the court battle and the EU’s Digital Markets Act (DMA), Apple was mandated to permit third-party app stores. However, the terms of Apple’s compliance were met with skepticism, described as “malicious compliance.”
In a retaliatory move, Epic Games opened a new App Store developer account, only to have Apple promptly close it. Apple justified this action by expressing mistrust in Epic’s ability to adhere to the rules. Phil Schiller, in an email, highlighted a critical tweet by Tim Sweeney, Epic Games’ CEO, where he had disparaged Apple’s DMA compliance plan as “hot garbage” and criticized “Junk Fees” and “Apple taxes.” The underlying message appeared to discourage public criticism of Apple by Epic.
EU Commissioner Thierry Breton responded swiftly to these developments, tweeting a red light emoji and stating that under the DMA, there is no room for gatekeepers to threaten and silence developers. Breton instructed EU services to investigate Apple’s termination of Epic’s developer account as a priority. German MEP Andreas Schwab, a key figure in the DMA’s development, asserted that Apple’s actions positioned the company as a likely first target for non-compliance sanctions under the new law.
The DMA allows for substantial fines, potentially reaching billions of dollars, if Apple is found in violation. Apple’s decision to cite Epic’s public criticism as a factor in closing its developer account has fused the US and EU battles into a singular contentious issue for Apple. While Apple could have justified its actions based on Epic’s past rule violations, incorporating public criticism has transformed the matter into a more controversial and complex challenge for the tech giant in both the US and the EU.
