In a massive blow to the business operations of Disney’s latest $1.5 billion investment, an escalation in Apple and Epic Games’ ongoing ‘App Store War’ has seen the former ban the latter’s specific iOS developer account, ostensibly for attempting to build their own independent app store platform.
The battle lines between the two tech giants was first drawn all the way back in 2020 when, after Epic Games attempted to implement their own Epic Games Store digital marketplace within the mobile version of Fortnite in an attempt to circumvent the Apple App Store’s mandatory 30% revenue cut, Apple completely blocked the popular battle royale title from their services.
Though the resulting court case would eventually end in a near-complete victory for Apple – in their only lost count, it was ordered that the company could not block apps from informing users of the existence of alternative pay platforms outside of the App Store – Epic proceeded to catch a break in January 2024 when the European Union’s Digital Markets Act ordered that their ecosystems allow for third-party storefronts within the union’s member states opened the door for Fortnite‘s return to mobile players within the EU.
(Meanwhile, Epic Games has had no such legal luck in America, and as such Fortnite continues to remain absent from the US version of the Apple App Store).
However, this door was slammed shut yet again on March 7th when Apple abruptly shuttered Epic Games’ iOS developer account, itself created through the developer’s Swedish arm with the intent of adding both Fortnite and their own Epic Games Store platform to the App Store.
In a statement provided to Ars Technica, an Apple spokesperson explained of their decision, “Epic’s egregious [past] breach of its contractual obligations to Apple led courts to determine that Apple has the right to terminate ‘any or all of Epic Games’ wholly owned subsidiaries, affiliates, and/or other entities under Epic Games’ control at any time and at Apple’s sole discretion.’ In light of Epic’s past and ongoing behavior, Apple chose to exercise that right.”
Meanwhile, in response to this sudden banning, Epic Games CEO Tim Sweeney alleged that “this a serious violation of the DMA and shows Apple has no intention of allowing true competition on iOS devices.”
“The DMA requires Apple to allow third-party app stores, like the Epic Games Store,” explained Sweeney. “Article 6(4) of the DMA says: ‘The gatekeeper shall allow and technically enable the installation and effective use of third-party software applications or software application stores using, or interoperating with, its operating system and allow those software applications or software application stores to be accessed by means other than the relevant core platform services of that gatekeeper.'”
“In terminating Epic’s developer account, Apple is taking out one of the largest potential competitors to the Apple App Store,” he added. “They are undermining our ability to be a viable competitor and they are showing other developers what happens when you try to compete with Apple or are critical of their unfair practices.”
In support of this last claim, Sweeney shared an email, allegedly sent to Epic Games’ head counsel in the case Gary Bornstein by Apple legal representative Mark A. Perry, in which the latter can be seen explicitly stating that the decision to ban the developer from the App Store was made because they believed the CEO’s past denigration of their developer terms was “a prelude to breaking them.”
“Apple recently reached out directly to Mr. Sweeney to give him an opportunity to explain why Apple should trust Epic this time and allow Epic Games Sweden AB to become an active developer. Mr. Sweeney’s response to that request was wholly insufficient and not credible. It boiled down to an unsupported “trust us”. History shows, however, that Epic games is verifiably untrustworthy.”
Next citing a tweet from Sweeney in which he opined that “Apple leadership faces some massive decisions in the coming weeks as the contradictions between their stated principles and the intended and actual consequences of their present policies are reckoned with”, Perry’s legal notice continued, “And the minimal assurances in Mr. Sweeney’s curt response were swiftly undercut by a litany of public attacks on Apple’s policies, compliance plan, and business model.”
Moving to summarize the issue as his message to a close, Perry ultimately asserted, “Apple is rightly concerned that Epic Games Sweden AB does not intend to adhere to its contractual commitments to Apple and is in fact a vehicle to manipulate proceedings in other jurisdictions.”
As of writing, whether or not this move will result in further court appearances by either of the involved entities remains to be seen.