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App StoreAppleiOSiPhoneTech

Apple accuses Epic of being “untrustworthy” in App Store feud

Epic Games' dreams of launching an iOS app store to rival Apple's were crushed after the iPhone maker terminated a subsidiary's account over trust issues.

By
Shubham Sawarkar
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ByShubham Sawarkar
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I’m a tech enthusiast who loves exploring gadgets, trends, and innovations. With certifications in CISCO Routing & Switching and Windows Server Administration, I bring a sharp...
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Mar 7, 2024, 7:41 AM EST
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Apple accuses Epic of being "untrustworthy" in App Store feud
Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images
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Epic Games’ long-running battle with Apple over the future of mobile gaming hit another roadblock this week, as the iPhone maker terminated a developer account that was key to Epic’s plans to launch a rival app store on iPhones and iPads in Europe.

The termination cuts off one of Epic’s few remaining routes back to iOS after it was kicked off the platform in 2020 for intentionally violating App Store policies by adding an unauthorized payment system to the popular game Fortnite.

In a terse letter to Epic, Apple’s legal representatives accused the gaming company of being “verifiably untrustworthy” and said they did not believe Epic intended to follow Apple’s developer agreement, citing its history of criticizing the tech giant’s policies as well as recent court filings.

“Given that pattern, Apple recently reached out directly to [Epic CEO Tim] Sweeney to give him an opportunity to explain why Apple should trust Epic this time,” the letter states. “Mr Sweeney’s response to that request was wholly insufficient and not credible.“

The terminated account belonged to Epic Games Sweden, a subsidiary through which the company had hoped to launch its own third-party app storefront for iPhones and iPads in line with new European Union legislation coming into force.

The Digital Markets Act, a landmark tech regulation package, will require Apple to permit alternative app stores and sideloading on iOS in the 27 member states. Epic was one of the first developers to announce plans to take advantage of the legal changes.

In a call with reporters, Sweeney claimed he would have been “glad” to provide further assurances on complying with Apple’s developer terms and accused the company of undermining a potential competitor before it could get off the ground.

The dispute is the latest chapter in an increasingly acrimonious feud that began in 2020, when Epic added an unauthorized payment system to the iOS version of Fortnite. The move was part of a deliberate stratagem to bypass Apple’s commissions of up to 30% on digital transactions.

Apple swiftly removed the game from the App Store, cutting off access to Epic’s most lucrative platform. Epic responded with a federal antitrust lawsuit, kicking off a legal battle that is still ongoing more than two years later.

Epic’s case alleges that Apple operates an illegal monopoly on iOS app distribution through its tight control over the one-billion-plus iPhone user base. However, the original trial judge agreed with Apple that its walled garden approach contributed to security and user experience.

The platform holder is now seeking to balance the Digital Markets Act’s requirements of third-party app stores with retaining some control. Under its proposed implementation, developers can create competing iOS storefronts but will have to pay Apple a substantial annual commission for users acquired through Apple’s own channels.

This approach has inflamed tensions with companies like Epic that believe Apple should not be permitted to take a cut of transactions its systems do not handle.

Even as the fight drags on, Sweeney has claimed a kind of moral victory for his campaign: The EU’s legislation owes its existence in large part to concerns about Apple’s mobile ecosystem raised through Epic’s lobbying and legal challenges.

With its avenues onto Apple’s platform once again blocked, it remains to be seen whether Epic’s storefront will launch at all. Sweeney suggested it could partner with alternative providers also planning iOS entries.

One thing is clear: Epic shows no sign of abandoning its war to open up mobile’s biggest ecosystem, even as Apple appears determined to protect its control over the App Store at all costs.

The battle wages on.


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