Fortnite developer Epic takes public feud with Apple to EU as fight over iPhone App Store becomes even bigger

Andrew Griffin
Wednesday 17 February 2021 13:09 GMT
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Fortnite developer Epic has taken its fight against Apple to the European Union, as the two companies continue to argue about the best future for the iPhone’s App Store.

It is the latest escalation in a public spat between the two companies that began last year, when Epic accused Apple of abusing its dominance of the iPhone to favour itself.

Epic said it was unfair that Apple is able to unfairly take money from developers through the 30 per cent charge it takes from payments made through the App Store, which is the only legitimate way of distributing apps onto the iPhone.

In what it said was a protest against that charge, Epic added its own payment system to Fortnite, in contravention of Apple’s rules. Apple banned the game, which has not been available on the iPhone since, beginning the fallout.

Since then, the two companies have been fighting both in public messages as well as through the legal system.

Epic Games has already begun proceedings against the tech giant in the US and Australia, as well as with the UK’s Competition Appeal Tribunal over what it claims are unfair practices around Apple’s App Store.

The same stand-off has also taken place on Google’s Android platform and Epic’s action in the UK focuses on Google as well as Apple.

In a statement on its latest complaint in the EU, which has been filed with the European Commission, the video game developer said: “Epic has faced and been harmed by Apple’s anti-competitive restrictions across payments and app distribution.

“When Epic gave Fortnite players on iOS a choice between Apple payment and Epic direct payment, passing on savings to direct purchasers, Apple retaliated by blocking Fortnite updates.

“When Epic sought to bring the Epic Games Store to iOS, Apple declined.

“And while Apple has launched its own gaming distribution service, Apple Arcade, it has barred competitors including Epic from doing the same.”

The company said it was not seeking damages from Apple, but “simply seeking fair access and competition that will benefit consumers and developers”.

A number of other firms, including music streaming platform Spotify, have also been vocal on the issue of fair competition and announced their support for Epic’s actions.

“What’s at stake here is the very future of mobile platforms,” Epic Games founder and chief executive Tim Sweeney said.

“Consumers have the right to install apps from sources of their choosing and developers have the right to compete in a fair marketplace.

“We will not stand idly by and allow Apple to use its platform dominance to control what should be a level digital playing field.

“It’s bad for consumers, who are paying inflated prices due to the complete lack of competition among stores and in-app payment processing.

“And it’s bad for developers, whose very livelihoods often hinge on Apple’s complete discretion as to who to allow on the iOS platform, and on which terms.”

Late last year, Apple announced a change to its commission scheme, confirming it would halve the charge to 15% for any developer which earns less than one million dollars per year in sales generated through the store.

At the time, Apple boss Tim Cook said he hoped the move would help “write the next chapter of creativity and prosperity on the App Store”.

“For 12 years, the App Store has helped developers turn their brightest ideas into apps that change the world,” Apple said in a statement in response to Epic’s filing.

“Our priorities have always been to provide customers with a safe and trusted place to download software and to apply the rules equally to all developers. Epic has been one of the most successful developers on the App Store, growing into a multibillion-dollar business that reaches millions of iOS customers around the world, including in the EU.

“In ways a judge has described as deceptive and clandestine, Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines that apply equally to every developer and protect customers.

“Their reckless behaviour made pawns of customers, and we look forward to making this clear to the European Commission.”

Additional reporting by Press Association

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