Apple banned Epic Games developer account due to «unreliability» — EGS on iOS is still postponed

The other day, Apple released iOS 17.4 by allowing users to download apps and games from third-party app stores — Epic was also preparing its own alternative, but due to the blocking of the developer’s account, the plans are still on hold.

Epic called Apple’s decision a violation of the DMA (EU Digital Markets Act) and believes that the company wants to prevent «serious competition». Apple, on the other hand, said that Epic has proven to be» unreliable (interestingly, the developer account for the Fortnite creator was reinstated only earlier this year and no complaints were raised at the time).

At the same time, Epic CEO Tim Sweeney was particularly vocal about the changes introduced in the App Store at the request of the EU, calling them «a new example of malicious compliance». He noted that technically, Apple is supposedly complying with the DMA, but in reality «its scheme is anticompetitive and full of new garbage fees for downloading», which significantly reduces the value of third-party app stores.

The claims are not unfounded: developers have to get approval from Apple to launch a store and comply with strict moderation rules; in addition, they have to pay a fee for «the underlying technology» if the app is downloaded more than a million times (about 54 cents per installation annually); and send a letter from a financial institution confirming that they have access to a loan of at least $1.1 million to resolve potential financial disputes. It also provides for a fixed fee for each transaction, which ranges from 15 to 30%.

After Sweeney openly complained about the new rules for app stores, Apple’s Phil Schiller sent Epic Games an email asking for «written guarantees» that the company would fulfill its obligations.

Sweeney responded that «Epic and its subsidiaries are acting in good faith and will comply with all terms of current and future agreements with Apple, and are happy to provide any specific additional assurances to». However, the response, judging by the blocking, did not satisfy Apple.

Epic says that this decision undermines its «ability to be a viable competitor to», and that Apple «shows other developers what will happen to»’s competitors. The developer calls the ban «retaliation by Epic for speaking out against Apple’s unfair and illegal practices».

Apple’s statement, meanwhile, refers to Epic’s «blatant violation of its contractual obligations». The iPhone maker further states that it has the «right to terminate the operations of any or all of Epic Games’ wholly owned or controlled subsidiaries, affiliates and/or other entities at any time and in its sole discretion. In light of Epic’s past and ongoing behavior, Apple has elected to exercise this right».

Despite all of this, Epic still plans to bring Fortnite to iOS — likely through an unaffiliated third-party app store. In addition, Apple Vision Pro provides experimental support for the Unreal Engine.

• The conflict between Apple and Epic started in 2020, when the latter added its own payment system for the virtual currency Fortnite and bypassed the 30% commission for purchases in App Store programs. Apple banned Epic from its App Store — and in response filed an antitrust lawsuit.
• In 2021, Judge Yvonne Gonzalez Rogers dismissed Epic’s lawsuit against Apple, but found that the latter violated California’s unfair competition law by prohibiting developers from directing «users to digital purchases bypassing the App Store payment system. The 9th U.S. Circuit Court of Appeals in San Francisco upheld most of Rogers’ decisions in 2023.
• In the end, the case went all the way to the Supreme Court, but both appeals were rejected. The Ministry of Justice is reportedly considering its own antitrust case against Apple.

Source: Engadget