Apple has made a significant decision under regulatory pressure to permit video game maker Epic Games to establish an alternative app store for iPhone apps in Europe. This move comes after a prolonged dispute between the two companies regarding app distribution and transaction fees within iPhone apps.
The change in Apple's stance was prompted by assurances from Epic Games that they will comply with Apple's requirements for accessing iPhone users. In the past, Epic Games had violated these rules in the U.S., leading to an antitrust lawsuit against Apple.
Following a trial in 2021 where most of Epic's claims were rejected, the feud between the two companies persisted. Apple had initially rejected Epic's proposal to create an alternative app store, a privilege Apple had exclusively held for over 15 years.
The implementation of the Digital Marketing Act (DMA) in the European Union this week paved the way for competition against Apple's App Store. Epic Games seized this opportunity to challenge Apple's dominance in the market.
Epic CEO Tim Sweeney accused Apple of obstructing their efforts to open an app store in Europe as retaliation for challenging Apple's lucrative fee structure. Apple charges commissions ranging from 15% to 30% for in-app transactions, a practice that has faced criticism for being monopolistic.
European regulators intervened, signaling that Apple's rejection of Epic's developer account in Europe could violate the DMA, potentially resulting in a substantial fine for Apple. Apple, in response, stated that it is now satisfied that Epic will adhere to its rules.
Sweeney praised regulators for swiftly addressing the issue, calling it a victory for European rule of law and developer freedom worldwide. However, the conflict between Apple and Epic is ongoing, with Apple demanding over $73 million from Epic to cover fees related to the U.S. antitrust case.
A hearing on this matter is scheduled for later this month, with Epic describing Apple's demand as excessive in court filings.
