Apple has taken steps to prevent the gaming giant Epic Games from establishing its own app store on iPhones and iPads in Europe. Their actions develop amid a complicated web of legal and regulatory scrutiny, with Epic Games attempting to challenge Apple’s dominance in app distribution through the European Union’s Digital Markets Act (DMA). This legislation, aimed at curtailing the power of digital gatekeepers and fostering competition, has become a battleground for the two companies.
The conflict, rooted in a dispute over Apple’s app store commission fees, has already led to a few significant actions, including Apple’s adjustment of its policies and a hefty fine imposed by Brussels antitrust regulators for anti-competitive practices. However, Apple’s recent action to terminate Epic’s developer account in Sweden, a move intended to enable Epic to distribute its apps directly on iOS devices, illustrates the tech giant’s determination to maintain control over its ecosystem. This termination, justified by Apple as a response to Epic’s “egregious” breaches of contract, has raised questions about Apple’s commitment to complying with the DMA and its effects on competition and consumer choice.
Epic Games, known for its popular Fortnite game, criticizes Apple’s decision as a violation of the DMA, arguing it undermines the potential for true competition on iOS devices. The size of the two corporations means that the outcome of their legal battles will likely have significant downstream ripple effects, both in Europe and abroad.
