LONDON — European Union regulators said they want to probe Apple over allegations it blocked video game company Epic Games from setting up its own app store, in a possible breach of digital rules that came into force in the 27-nation bloc on Thursday.
It is a new escalation of the high-profile battle between the two companies. Epic, the maker of the popular game Fortnite, has spent years fighting Apple’s exclusive control over the distribution of iPhone apps.
Epic claimed on Wednesday that Apple had thwarted its attempt to set up its own iOS app marketplace to compete with Apple’s App Store, calling it a violation of the EU’s new Digital Markets Act.
The 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 top antitrust watchdog, said in a statement on Thursday that it had “requested further explanations on this from Apple in accordance with the DMA.” The rules threaten fines that could reach billions for violations.
Apple was already hit with a $2 billion EU antitrust fine this week for preventing competition in music streaming.
The commission said it was “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 bloc’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 present conduct, Apple has decided to exercise this right.”