Apple reinstates Epic Games EU developer account after EU intervention

Apple today reversed its previous decision and reinstated an Epic Games developer account in the EU. Apple said in a statement to MacRumors that Epic Games is committed to following the rules and allowing the Epic Swedish developer account to rejoin the Apple developer program.

The company wrote in a statement:

After speaking with Epic, they have committed to following the rules, including our DMA policy. As a result, Epic Sweden AB was approved to re-sign the Developer Agreement and join the Apple Developer Program.

Apple terminated Epic Games’ Swedish developer account earlier this week. This effectively prevents Epic Games from developing third-party apps for iPhone users in the EU. The company claims that it terminated the account due to a previous breach of contractual obligations by Epic Games and that the court’s ruling in the Epic Games v. Apple lawsuit gives Apple the right to terminate any Epic Games account at any time.

In an attempt to defend its decision, Apple said

Epic’s material breach of its contractual obligations to Apple led to the court ruling that Apple has the right to terminate its developer accounts “at any time and in its sole discretion,” including any or all of Epic Games’ wholly-owned subsidiaries, affiliates and other entities under the control of Epic Games. . Apple chose to exercise this right in light of Epic’s past and present conduct.

However, Epic Games quickly responded, saying

By terminating an Epic developer account, Apple is clearing out one of its biggest potential competitors in the Apple App Store. They undermine our ability to be a viable competitor. They “show muscle” to other developers, showing that this will happen if someone tries to compete with Apple or criticize Apple’s unfair practices.

The EU intervenes

According to a report by Britain’s Financial Times, the European Commission has asked Apple to provide “further explanation” for its decision to terminate the Epic Games developer account. The European Commission said it was investigating this under the Digital Markets Act (DMA). The DMA is a new law aimed at curbing the power of large online platforms, and tech companies have until March 7 to comply. Apple said a court had previously granted it the right to terminate the accounts of any of Epic’s subsidiaries for contractual violations.

The move thwarts Epic’s plans to launch an Epic Games Store in the EU and bring Fortnite back to the iPhone. As part of DMA compliance, starting with iOS 17.4, Apple allows the use of additional iPhone app stores in the EU. Epic claims that Apple’s account termination broke DMA and severely limited competition on iOS devices.

Epic denounced Apple’s decision as a violation of competition principles, claiming it was evidence of Apple’s unwillingness to allow legitimate competition on its platform. The company claims that Apple’s move is aimed at eliminating a major potential competitor in the App Store. Apple’s move is the latest development in a larger legal conflict between the two sides since 2020. At that time, Apple removed its game “Fortnite” from the App Store because Epic bypassed the rules of Apple’s payment system. In response, Epic filed lawsuits in the United States and Australia, accusing Apple of anti-competitive behavior.

The reason behind Apple’s decision to block Epic

Apple’s Phil Schiller talks to Epic Games CEO Tim Sweeney. He asked Sweeney for a written assurance that Epic Games would comply with the new rules on the third-party app market. Apple, however, feels that Sweeney’s response is not thorough enough. For this reason, the company imposed the ban

Schiller said via email

Epic has breached contracts in the past. For example, Epic joined the developer program with full understanding of its terms and then chose to knowingly violate its agreement with Apple.

Epic knowingly broke Apple’s rules to achieve a goal and gain financial gain. You recently described our DMA compliance program as “hot garbage”, a “horror show” and “a slick new example of malicious compliance”. You also complain about the so-called “garbage tax” and the “Apple tax”.

Epic’s response

The European Union quickly stepped in and demanded a “further explanation” from Apple as to why it closed Epic Games’ EU developer account. The move prompted Apple to quickly rethink its decision. Epic Games said in a statement to MacRumors that Apple’s response indicates that the European Commission plans to move quickly to enforce DMA and that the Epic Games Store is coming to Europe.

Apple has informed us and promised the European Commission that it will reinstate our developer accounts. This sends a strong signal to developers that the European Commission will act quickly to enforce the Digital Markets Act and hold watchdogs accountable. We will continue with the launch of the Epic Games Store as planned and bring Fortnite back to the European iOS platform.

Conclusion

In conclusion, recent developments between Apple and Epic Games highlight the complexity of competition within the digital marketplace, particularly in the areas of app distribution and platform management. Apple’s decision to initially terminate Epic’s EU developer account reflects ongoing tensions between the tech giants and developers who want to challenge established norms and practices.

The European Commission’s intervention under the Digital Markets Act (DMA) highlights the regulatory scrutiny facing the dominant online platforms and their actions regarding competition and consumer choice. The Commission’s request for further explanations from Apple signals a proactive approach to implementing regulations aimed at promoting fair competition and innovation in the digital ecosystem.

Epic Games’ swift response and subsequent reinstatement of its developer accounts by Apple highlight the importance of regulatory oversight in shaping industry dynamics and protecting the interests of both users and developers. The resolution of this dispute reflects the growing influence of regulatory frameworks in addressing antitrust concerns and promoting a level playing field in the digital marketplace.

As Apple and Epic Games grapple with the complexities of regulatory compliance and market competition, their interactions serve as a microcosm of broader debates surrounding the power dynamics between platform operators, developers and regulators. The outcome of this dispute sets a precedent for future engagements between technology companies and regulators, highlighting the importance of transparency, accountability and compliance with regulatory standards to promote a fair and competitive digital economy.