In a latest development of the ongoing feud between tech giants Apple and Epic Games, the former has taken a bold step by terminating the latter's developer account in Europe. This move comes as a retaliation against Epic's antitrust lobbying efforts and ongoing legal battle with Apple. Let's dive into the details of what led to this decision and its potential implications.
The Background: The friction between Apple and Epic Games dates back to 2020 when Epic challenged Apple's App Store policies regarding the 30% commission on game sales. Though Epic lost the legal battle, it managed to bring about changes in Apple's policies under California law. This set the stage for a prolonged conflict between the two companies.
The Latest Development: Epic Games CEO, Tim Sweeney, announced on Wednesday that Apple had rejected their application for a developer account necessary to launch their app store in Europe. Sweeney alleges that this move is a vindictive response from Apple due to Epic's antitrust lobbying efforts and ongoing lawsuit against the tech giant.
Apple's Response: An Apple spokesperson defended the company's decision, citing Epic's continuous legal actions against Apple as the reason for terminating the developer account. According to Apple, Epic's breach of contractual obligations gives them the right to terminate Epic Games' entities at their sole discretion.
Implications for the Industry: This latest development underscores the potential regulatory challenges to Apple's App Store revenue. With the introduction of the Digital Markets Act in Europe, which mandates big tech companies to open their platforms to competitors, Apple's monopoly over the iPhone App Store is being challenged. Companies like Spotify have also raised concerns about Apple's measures not aligning with the spirit of the EU law.
Epic's Plans: Despite facing rejection from Apple, Epic Games had plans to launch a new app store in Europe. However, Apple's termination of their developer account has put a halt to these plans for now. Tim Sweeney revealed that Epic had applied for a developer account in Sweden but was met with rejection from Apple.
Apple's Demands: In response to Epic's plans, Apple's Phil Schiller requested written assurance of Epic's good faith and commitment to their agreements. However, Sweeney criticized Apple's vague demands, stating that they wanted an essay expressing loyalty to Apple and a cessation of public discourse from Epic.
Conclusion: The termination of Epic Games' developer account in Europe by Apple marks a significant escalation in the ongoing feud between the two tech giants. While Apple cites Epic's breach of contractual obligations as the reason for their decision, Epic alleges retaliation from Apple due to their antitrust lobbying efforts and ongoing legal battle. This latest development highlights the potential regulatory challenges to Apple's App Store revenue and the need for greater transparency and competition in the tech industry.