Rift between Apple and Epic Games attracts investigation by the European Commission

Apple’s decision to revoke Epic Games’ developer accounts yesterday has resulted in users being unable to access the upcoming Epic Games Store on iOS.

The dispute between the companies began when Epic Games made a public statement about Apple’s adherence to the European Union’s (EU) regulations outlined in the Digital Markets Act (DMA). For those unfamiliar with the DMA, it is a legislation implemented by the EU to prevent dominant tech companies such as Apple, Meta, and Microsoft from controlling the market.

The DMA has successfully compelled Apple to modify its policies in multiple instances, one of which involved the music streaming service Spotify. The DMA pushed for transparency from Apple regarding pricing and subscription choices for consumers. Previously, Apple prohibited this information from being disclosed, resulting in users being unaware of more affordable options for Spotify Premium. Furthermore, users were unable to buy these plans directly through the Spotify app.

The recent dispute between two major companies has caught the eye of the EU’s regulatory body, the European Commission. In public remarks, Epic Games referred to Apple as “a danger to their ecosystem.”Nevertheless, Epic Games was not the sole company voicing criticism against Apple’s practices.

The European Commission has requested further information from Apple regarding the escalating dispute with Epic Games, as reported by Reuters. A spokesperson for the Commission emphasized the need for more details on the matter.

“We are also evaluating whether Apple’s actions raise doubts on their compliance with the DSA (Digital Services Act) and the P2B (Platform to Business Regulation), given the links between the developer programme membership and the App Store as designated VLOP (very large online platform).”

The DSA focuses on overseeing “online intermediaries and platforms”such as marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms. Its goal, along with the DMA, is to promote competition and equitable market conditions.

Conversely, P2B offers a more consistent and foreseeable marketplace for online platform traders and small businesses.

In the meantime, a statement from an Apple spokesperson read:

“Epic’s egregious breach of its contractual obligations to Apple led courts to determine that Apple has the right to terminate ‘any or all of Epic Games’ wholly owned subsidiaries, affiliates, and/or other entities under Epic Games’ control at any time and at Apple’s sole discretion.′ In light of Epic’s past and ongoing behavior, Apple chose to exercise that right.”

According to CNBC, Apple’s App Store leader, Phil Schiller, requested that Epic Games provide written assurance of their compliance with Apple’s terms and conditions. Despite Epic Games CEO Tim Sweeney providing the required assurance, the developer account was still terminated a week later, suggesting that this may have been a retaliatory action by Apple in response to the ongoing lawsuits.