Epic Games vs. Apple: The Background

Epic Games and Apple have been engaged in a legal and regulatory battle since 2020. The conflict began when Epic attempted to bypass Apple’s in-app payment system, which charges a commission of up to 30%. This led to the removal of “Fortnite” from the App Store and a series of lawsuits. Epic accused Apple of monopolistic practices, while Apple defended its policies as necessary for maintaining a secure and user-friendly ecosystem.

The Most Recent Controversy

The recent controversy revolves around the Epic Sweden AB Marketplace app, which Epic Games submitted to Apple for approval in Europe. Epic claimed that Apple rejected the app twice due to the design of certain buttons and labels, which Apple argued were too similar to those used in its App Store. Specifically, Apple’s objections were about the “Install” button and the “in-app purchases” label.

Epic Games took to social media, posting on X (formerly Twitter), to express their frustration. They described Apple’s rejection as “arbitrary, obstructive, and in violation of the DMA (Digital Markets Act).” Epic shared their concerns with the European Commission, which has been investigating Apple’s app validation processes under the new EU regulations.

The Digital Markets Act (DMA) Impact

The Digital Markets Act, which came into force in March, aims to promote competition by requiring tech giants like Apple to allow third-party app stores on their devices. Under the DMA, Apple is now obligated to permit alternative app stores on iPhones and iPads in Europe. This legislation is seen as a way to reduce the dominance of major tech companies and foster a more competitive environment.

Apple had proposed changes to its App Store policies earlier this year to comply with the DMA. These changes included allowing alternative app stores and providing an opt-out from using Apple’s in-app payment system. However, Apple introduced a “core technology fee,” which many developers criticized as exploitative.

Apple’s Conditional Approval

Despite the initial rejections, Apple has now approved the Epic Games marketplace app, but with conditions. Apple stated that Epic Games must make certain adjustments to the app’s design to ensure it does not resemble the App Store too closely. This includes changes to the “Install” button and the “in-app purchases” label. Apple emphasized that Epic had generally adhered to the guidelines, except for these specific elements.

Apple’s spokesperson clarified that the approval of the Epic Sweden AB Marketplace app was separate from the “Fortnite” app, which had already been approved for re-entry into the App Store.

Implications for Developers and Consumers

The approval of Epic Games’ marketplace app in Europe marks a significant victory for Epic and other developers advocating for a more open app ecosystem. It demonstrates that regulatory pressure can lead to changes in how tech giants operate their platforms. However, the conditions imposed by Apple highlight the company’s intent to maintain a degree of control over the app environment on its devices.

For consumers, the introduction of alternative app stores on iOS devices could lead to more choices and potentially lower prices. Developers, on the other hand, may find new opportunities to reach users without incurring the high commissions charged by Apple.

The approval of the Epic Games marketplace app marks a new chapter in the ongoing battle between Epic Games and Apple. While it represents a win for Epic under the DMA’s new rules, the conditional nature of the approval shows that the struggle for a truly open app ecosystem on iOS devices is far from over. As the tech landscape continues to evolve, the outcomes of such disputes will shape the future of digital marketplaces and the balance of power between developers and platform providers.