Apple Reverses Course, Allows Epic Games to Start Competing App Store in Europe
In a surprising turn of events, tech giant Apple has reversed its decision to block Epic Games, the maker of Fortnite, from starting a competing app store in Europe. The move comes just days after Epic Games publicly complained about Apple’s actions, sparking a heated debate over app store competition.
The reversal by Apple is seen as a response to a new European tech competition law, the Digital Markets Act, which went into effect recently. This law requires Apple to give app makers alternatives for selling software to iPhone and iPad users, including the ability to use competing app stores and payment systems other than its own.
By opening up the iPhone to competing stores, European regulators hope to benefit smartphone users across the region with lower prices. Epic Games, known for its popular video game Fortnite, currently takes a 12 percent commission for every game it sells on other platforms, which is significantly lower than the 30 percent that Apple typically collects.
Justin Kan, founder of Twitch and creator of Stash, an open payments platform for video game companies, commented on the development, stating, “Competition generally creates lower prices. Ultimately, it’s probably good for Apple because it could grow the market of apps.”
The feud between Apple and Epic Games dates back to 2020 when Epic broke the App Store’s rules by encouraging customers to pay it directly for features in Fortnite. Apple responded by removing Epic from the App Store, leading to a legal battle over antitrust issues related to payment systems.
The recent dispute was reignited by Europe’s competition law, with Epic planning to launch a competing app store called the Epic Games Store through a subsidiary in Sweden. Initially, Apple granted the subsidiary a developer account, but later terminated it, citing a lack of trust in Epic’s ability to follow its rules.
However, after Epic’s CEO Tim Sweeney assured Apple that the company would comply with its policies, Apple changed its stance. An Apple spokesman confirmed that Epic had committed to following its rules, including those in Europe.
Mr. Sweeney praised the decision as a “big win for European rule of law” and for developers worldwide to speak up. The move is seen as a step towards promoting competition and innovation in the app store market, benefiting both developers and consumers.
