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Epic Games and Apple have entered a new phase in their feud. Apple terminated Epic Games iOS Development account for Sweden in a move that is unprecedented and a direct response to a company who uses their services.
It is not surprising to those who have been following the conflict of the two companies, as this comes in response to the success Epic Games has had with their legal battles against Apple. This is a matter that goes beyond the relationship between the two companies.
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What happened?
Apple has closed a developer account Epic Games set up in Sweden. Epic Games created the account so they can market Fornite, and other games that are well-known to their European customers.
Epic Games can use their online store to purchase in-game items, which is the most profitable part of their business. It can’t sell games or in-game purchases without access to the Apple Store, since iOS users have no other way to purchase them.
Apple’s Statement
Apple released a statement regarding the issue, in which they stated that it was within their right to terminate the account and that this was done according to the US court’s decision based on Epic Games’ lawsuit against Apple and Google.
In a recent statement, an Apple spokesperson stated that the courts determined that Apple had the right to terminate “any or all Epic Games subsidiaries, affiliates and/or entities under Epic Games control at any time at Apple’s discretion,“. Apple exercised this right in light of Epic’s history and current behavior.
Epic Games Statement
Epic Games published a blog posting detailing the problem and blaming Apple. The blog post is referring to the Digital Markets Act. Apple, however, has made its decision based on the US courts rulings rather than this piece of legislation which governs the EU market.
Apple terminated the account and we are no longer able to develop Epic Games Store on iOS. This is a serious breach of the DMA, and it shows that Apple does not intend to allow actual competition on iOS devices.
Apple has terminated Epic’s developer account. This is a blow to one of Apple’s largest competitors in the Apple App Store. Apple is undermining Epic’s ability to compete and showing other developers the consequences of criticizing Apple’s unfair practices or competing with them.
What’s DMA?
DMA is Digital Markets Act. The EU has issued a law that regulates this dispute between Epic Games and Apple. Apple and Google are required by law to allow third-party applications in their store.
The law, despite its technical and complicated language, is aimed at breaking the monopoly that the two major corporations hold on the app market platforms. The two corporations can prevent small companies and third parties from reaching their users by controlling the platforms where they download their apps.
The opponents of the regulation say that European laws have become too strict, and are essentially anti-business. The EU is an important market for big tech companies. They must comply with regulations even though the rules are different from those in the US. The EU’s regulations are used by smaller companies, which is anyone that isn’t Apple or Google, to get better treatment.
The Lawsuit
Apple made its decision after Epic Games sued it. The Fortnite creators claimed that Apple had a monopoly on the market, and they were charging an exorbitant markup to use the Apple Store.
Apple took 30 percent of each purchase made through their store at the time. Apple was allowed to charge whatever they want for services, as the court ruled against Epic Games. Apple also prevented apps that used their platform to advertise other platforms where users could go instead. Apple was stopped from continuing this practice after the court ruled that it was illegal.
The European Case
Apple was also criticized for similar issues in relation to European regulations. They are also more strict and comprehensive when it comes monopolies. Apple was fined $1.95 billion because it “abused its dominant position in the market for distribution of music streaming applications” to iPhone and iPad owners.”
The case began with a Spotify complaint that Apple was preventing their users from receiving information about Spotify’s cheaper music streaming service. The decision has a huge impact on third-party apps that use Apple or Google platforms.
Epic Games
Epic Games is a major player in the online casual multiplayer game industry. The company is the driving force behind Fortnite and has generated billions in revenue. The news was released just days after Disney announced its investment of $1.5 billion in the company.
This deal was exciting for Disney fans, as they will be able play Fortnite with their favourite Disney characters. We’re excited to see what collaboration will result from the two sharing IPs. Apple’s actions seem even more bizarre now that Disney is backing Epic Games. It seems to be an extreme and vindictive action.
Criticizing Apple Publicly
Epic Games claims that their public criticisms of Apple’s business practices and ban are the cause of the escalation and the subsequent ban. Apple has released a plan for complying with DMA and Epic Games publicly criticizes it.
Apple has retaliated against Epic because it spoke out against Apple’s unfair, illegal and abusive practices. They’ve done this to other developers before. Apple’s ability to remove a third party app store from iOS at will is a major concern for developers. They could lose their audience permanently at any moment .”
The quality of Epic Games’ game and the fact that it could affect other apps that depend on Apple are likely to make this approach to the topic popular.
The conclusion of the article is:
Apple has removed Epic Games and Fortnite in-game purchases from its store. This is in response to the lawsuit Epic Games filed against Apple. This issue has implications for all gamers, since Apple and Google can control which apps are available to download and ban third-party applications as they please.
Author Bio
Awais dar, founder of the Finnish media outlet SuomiTimes.com
