Just days after attempting to block Epic Games’ plans to launch its own app store on iPhones in Europe, Apple has reversed course. This swift change comes amidst the recent implementation of the Digital Markets Act (DMA) by the European Union, highlighting its potential impact on the tech giant’s App Store dominance.
The reversal stems from a dispute that began in 2020 when Epic Games introduced a payment system within Fortnite that bypassed Apple’s App Store payment system. This move violated Apple’s App Store guidelines, which mandate that all in-app purchases use their proprietary system, generating a 30% commission for Apple. Epic challenged this policy in court, arguing it was anti-competitive and stifled innovation.
While the legal battle continues globally, the situation in Europe took a significant turn with the introduction of the DMA. This legislation aims to create a fairer digital market by regulating the practices of large gatekeeper platforms like Apple. The DMA specifically prohibits gatekeepers from forcing developers to use their in-app payment systems, a provision directly relevant to the Epic Games case.
Following the DMA’s implementation, Epic Games announced its intention to launch the Epic Games Store and Fortnite on iPhones in Europe through a newly established Swedish developer account. Apple swiftly responded by blocking the account, prompting intervention from the European Commission.
The Commission, tasked with enforcing the DMA, conducted a rapid inquiry into the situation. The outcome appears to have been decisive, with Apple quickly reversing its decision and committing to reinstate Epic Games’ developer account.
This turn of events is seen as a major win for both Epic Games and the European Commission. Tim Sweeney, CEO of Epic Games, hailed it as a “victory for the freedom of developers worldwide.” The swift action by the Commission demonstrates its commitment to enforcing the DMA and ensuring a more competitive digital marketplace.
While the reinstatement only applies to the European market for now, it sets a significant precedent. The legal battle between Apple and Epic Games continues on a global scale, but the success of the DMA in Europe raises questions about whether similar regulations might be implemented elsewhere. Apple may be forced to adapt its App Store policies in other regions if it wants to avoid similar interventions from regulators.
The return of Fortnite to iPhones in Europe is still some time away. Epic Games needs to complete development of the Epic Games Store for iOS under the new DMA regulations. However, with the developer account reinstated, the path is now clear for European iPhone users to once again enjoy the popular battle royale game.
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This article first appeared on The WIRE and is brought to you by Hyphen Digital Network
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