Apple and Fortnite developer Epic in a dramatic battle over the iPhone

Apple and Fortnite developer Epic are caught in a public and dramatic battle over iPhone rules.

The two companies have been at loggerheads over iPhone apps for years. But the latest breakup between the two is one of the most dramatic yet, prompting European Union regulators to step in.

Epic has long argued that it should be able to run its own App Store on the iPhone, as it does on the Mac. Apple has always been against it.

This week, however, Apple made updates to comply with Europe’s Digital Markets Act, which aims to limit the power of big tech companies. These changes include allowing developers to create their own app stores through which other apps can be distributed.

However, Epic said on Wednesday that Apple had removed its developer account, leaving it unable to set up its own app store. Epic argued that Apple violated the DMA by doing so, but Apple argued that Epic was untrustworthy and had the right to terminate its account.

The DMA’s sweeping set of rules, designed to prevent big tech companies from cornering digital markets, forced Apple to allow people in Europe to download iPhone apps from stores not operated by the US tech giant – a move it has long resisted.

The European Commission, the EU’s main antitrust watchdog, said in a statement on Thursday that it had “requested further explanations from Apple in line with the DMA”. The rules threaten fines that could reach billions for violations.

The commission said it is “also assessing whether Apple’s actions raise doubts about their compliance” with other EU regulations including the Digital Services Act, another set of regulations in the Union’s digital rulebook that prohibits tech companies from “arbitrarily applying” their terms and conditions.

Epic argued that Apple was brazenly violating the DMA by rejecting an alternative iPhone app store that it planned to set up in Sweden to serve European Union users.

He accused Apple of retaliating against harsh criticism issued by CEO Tim Sweeney, who led the largely unsuccessful antitrust case against the iPhone App Store in the US.

Apple said its action was justified by Epic’s previous illegal actions and litigation that resulted in a 2021 US court decision.

Apple pulled Epic from its App Store after it tried to circumvent restrictions that Apple says protect the security and privacy of iPhone users while helping recoup some of the investment that powers one of the world’s most ubiquitous devices.

“Epic’s egregious breach of its contractual obligations to Apple has led the courts to find that Apple has the right to terminate ‘any or all subsidiaries, affiliates and/or other entities controlled by Epic Games’ at any time and in Apple’s sole discretion,” Apple said in a statement.

“In light of Epic’s past and current conduct, Apple has decided to exercise that right.”

Additional agency reports

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