Apple Relents in Feud with Epic Games Under EU Pressure, Allowing Epic Store on iPhones

In response to mounting pressure from European regulators, Apple has taken a step back in its ongoing dispute with Epic Games, clearing the path for Epic to launch its own game store on iPhones and iPads in Europe. The move comes after Apple initially took measures to prevent Epic from establishing a store and reintroducing the popular game Fortnite, which Apple had removed from its App Store in 2020 due to Epic’s violation of in-app payment rules.

Apple’s decision to open its doors to Epic aligns with the European Union’s Thursday deadline for major tech companies to comply with the Digital Markets Act (DMA). The DMA sets rules prohibiting Apple and Google from controlling the distribution of apps on devices with iOS and Android operating systems.

Thierry Breton, the EU’s industry chief, acknowledged Apple’s backtrack on excluding Epic and expressed satisfaction over the concrete results of the DMA. He mentioned that regulators had warned Apple earlier in the week about blocking Epic’s potential return.

The legal battle between Epic and Apple dates back to 2020 when Epic alleged that Apple’s practice of charging up to 30% commissions on in-app payments violated US antitrust rules. Despite losing the court battle, Epic intentionally broke Apple’s rules as a protest, leading to its exclusion from Apple’s devices.

While Epic’s victory allows it to launch its game store on iPhones in Europe, it falls short of the company’s broader goals. Epic CEO Tim Sweeney criticized Apple’s plans for complying with the DMA, particularly its assertion that it still retains the right to exclude third-party app marketplaces under certain circumstances. Notably, Fortnite remains unavailable in the US App Store.

Apple finds itself grappling with challenges to its App Store business model amid revelations that iPhone sales for the quarter will be lower than expected. The recent dispute involved Apple’s blocking of Epic Games’ developer account, a step necessary for developers to sell apps on Apple devices.

On Friday, Apple reinstated Epic Games’ developer account, signalling a resolution to their recent clash. Epic Games confirmed its commitment to moving forward with plans to bring the Epic Games Store and Fortnite back to iOS in Europe. The reinstatement serves as a notable development, sending a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold tech gatekeepers accountable.