Epic Games CEO Tim Sweeney Claims Apple and Google Operate ‘Gangster-Style Businesses,’ Urges Stricter Laws to Curb Illegal Practices by Big Tech

During a recent Y Combinator event held on a Wednesday, Tim Sweeney, CEO of Epic Games, took the opportunity to vocally criticize tech giants Apple and Google. He expressed his concerns that the practices employed by these massive corporations are not only disruptive to his company’s operations but also dissuade developers from embracing their platform. On stage, Sweeney characterized both Apple and Google as engaging in “gangster-style”business tactics, suggesting that they often resort to questionable practices under the assumption that they can do so without facing consequences.

Sweeney’s Critique: A Call for Ethical Business Practices

Tim Sweeney’s ongoing dispute with Apple is well-documented, and his comments highlight a history of tension between Epic Games and the Cupertino-based company. He has been unequivocal in his criticism of Apple’s approach, alleging that the corporation’s restrictions inhibit competition and stifle revenue opportunities for developers. During his remarks, Sweeney underscored the need for more stringent enforcement of the law to curtail what he describes as these companies’ illegal behaviors.

“The sad truth is that Apple and Google are no longer good-faith, law-abiding companies. They’re run, in many ways, as gangster-style businesses that will do anything they think they can get away with. If they think that the fine is going to be cheaper than the lost revenue from an illegal practice, they always continue the illegal practice and pay the fine. Crime pays for big tech companies. Obviously, we shouldn’t expect that to change until enforcement becomes much, much more vigorous.”

Sweeney’s grievances focus on Apple’s financial demands, particularly highlighting that no significant game developers have chosen to distribute their products through the Epic Games Store. Due to high fees imposed by Apple, including a ‘core technology’ payment of 50 cents for every installation of apps with over one million downloads, many developers are discouraged from pursuing this route. Sweeney argues this financial burden risks bankrupting smaller developers rather than allowing them to flourish in a competitive environment.

Turning to Google, Sweeney indicated that while the advertising giant doesn’t mimic Apple’s approach, it still impedes the adoption of the Epic Games Store on Android devices. Users attempting to install the Epic Games Store receive warnings that the software originates from an “unknown source, ”which can raise safety concerns. This cautionary message leads approximately 50-60% of users to abandon the installation process, resulting in significant lost revenue for Epic Games. Given the profits these tech giants generate from such practices, Sweeney posits that any change in their operations is unlikely.

For more insights on Sweeney’s statements and the implications for the tech industry, check out the full article on TechCrunch.

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