[ad_1]
Apple reversed course under regulatory pressure, clearing the way for its unsavory adversary, video game maker Epic Games, to set up an alternative store for iPhone apps in Europe.
The change of direction revealed Friday is the latest in a bitter battle between Apple and Epic Games, maker of the popular video game Fortnite, over how iPhone apps are distributed and fees for digital transactions that occur within apps. This is the latest development.
Apple attributed the change of heart to Epic’s reassurances that it would not violate requirements for access to iPhone owners. In 2020, Epic brazenly broke rules in the US and filed an antitrust lawsuit claiming that Apple’s App Store is a monopoly.
After a month-long trial, a federal judge in 2021 rejected most of Epic’s claims in an appealable ruling, but the spat with Apple continues.
Apple had rejected Epic’s attempts to set up an account that would allow it to establish an alternative store for downloading iPhone apps. The store has been exclusively managed by Apple for more than 15 years.
But a new set of regulations called the Digital Marketing Act (DMA) that came into effect in the 27-nation European Union earlier this week has paved the way for other companies to compete with Apple’s App Store. Epic wanted to seize this opportunity. .
Epic CEO Tim Sweeney said Apple’s action to block efforts to open an app store in Europe was an act of retaliation against the video game maker for challenging a system that has generated huge profits for the iPhone maker. He claimed that it was part of it. Apple collects fees of 15% to 30% on digital transactions completed within iPhone apps, an arrangement that generates billions of dollars a year in revenue for the company while charging fees as monopolistic price gouging. , which has sparked complaints from Epic and other companies.
European regulators say Apple’s rejection of Sweden-based Epic’s efforts to open an iPhone app developer account in Europe could violate the DMA, potentially leading to hefty fines. suggested that it was a possibility.
In a brief statement, Apple did not mention regulatory approval, saying it was satisfied that Epic complied with all rules.
In a social media post, Sweeney praised regulators for taking swift action to rein in Apple, calling the outcome “a statement from the European rule of law, the European Commission and developers around the world.” “A huge victory for the freedom of the world.”
The bad blood between Apple and Epic isn’t over yet. Apple is seeking more than $73 million from Epic to cover fees in a U.S. antitrust lawsuit over the App Store. A hearing on the request, which Epic describes in court documents as outlandish, is scheduled for later this month.
[ad_2]
Source link
