The App Store policy changes in iOS 17.4 aren't enough for Epic's Tim Sweeney, who hit back at Apple for implementing an "anti-competitive scheme rife with garbage charges." In a statement and a series of posts on Twitter/X, Epic CEO Tim Sweeney made clear his views on changes to the App Store required by the EU under the Digital Markets Act (DMA).
To avoid misinterpretation, we have included Sweeney’s words in full.
They force developers to choose between AppStore exclusivity and store terms, which would be illegal under the Digital Markets Act, or accept a new and illegal anti-competitive scheme filled with new download fees and new taxes that Apple imposes on payments they aren't processing at all.
Apple has proposed that it can choose which stores are allowed to compete with its App Store. For example, they could prevent Epic from launching the Epic Games Store and distributing Fortnite through it, or they could block Microsoft, Valve, GoodOldGames, or new entrants.
Epic Games Store is the seventh largest software store in the world (after 3 console stores, 2 mobile stores and Steam on PC). We are determined to compete to be the number one multi-platform software store by launching games on iOS and Android based on payment competition, 0%-12% fees, and exclusive games like Fortnite.
Epic has always supported Apple’s concept of security certification and malware scanning of apps, but we strongly object to Apple twisting this process to undermine competition and continue to impose Apple taxes on transactions in which they have no involvement.
There's also a lot of hot garbage in Apple's announcement. We'll need more time to analyze the written and unwritten parts of this new horror show, so stay tuned.
It's unclear why Sweeney said the policies were inconsistent with the DMA's rules. Presumably, Apple has submitted its plans to the EU before making the announcement, which is a requirement of the DMA.
Furthermore, the DMA does not require app store gatekeepers to implement zero fees. It simply requires that charges be fair and reasonable. For third-party app stores other than Apple, a fee of 0.50 euros is required for the first installation of the app, but there is no need to pay again for subsequent installations by the same user.
The terms of the new system clearly state that Apple will only charge fees for payments processed through Apple. If other app stores use their own payment processing, there are no fees to ApplePay.
One requirement Sweeney didn't mention in his Twitter/X post is that third-party app stores wishing to own an App Market must provide Apple with a €1 million letter of credit from an A-rated financial institution. Apple says this is "to ensure support for developers and users."
Presumably, Epic, Microsoft, Spotify, and other large companies should be able to offer such a service because of their long history, strong financial health, and large user bases. Apple still does not allow installation of application packages from other sources.
"Fortnite" is still banned from the App Store. But it's available on the game streaming service on iPhone and iPad, iOS 17.4 will revamp it globally, and Epic may reinstate its use in the EU on its own app store soon.
Related articles: