Apple is facing challenges due to the erosion of its App Store business model.
Under pressure from European regulators, Apple took a step back in its feud with Epic Games on Friday, clearing the way for Epic to put its own game store on iPhones and iPads in Europe.
Earlier this week, Apple had taken steps to block Epic from starting up a store and bringing back the popular game Fortnite, which Apple removed from its App Store in 2020 after Epic broke the iPhone maker’s in-app payment rules in protest.
Apple’s decision to open its door to Epic follows the European Union’s Thursday deadline for Big Tech companies to comply with the Digital Markets Act (DMA), a set of rules that bans Apple and Google from controlling which apps are distributed on devices with the iOS and Android operating systems.
Thierry Breton, the EU’s industry chief, said regulators had warned Apple about the iPhone maker’s move earlier this week to block Epic’s potential return.
“I take note with satisfaction that following our contacts Apple decided to backtrack its decision on Epic exclusion. From Day 2, #DMA is already showing very concrete results!” Breton said on the X social media platform.
Epic and Apple have been in a legal battle since 2020, when the gaming firm alleged that Apple’s practice of charging up to 30 percent commissions on in-app payments on its iOS devices violated US antitrust rules. Epic lost its court battle against Apple, and the game maker’s gambit to intentionally break Apple’s rules as a protest got it banned from Apple’s devices.
Epic’s victory on Friday leaves it well short of everything it wants from Apple.
Epic CEO Tim Sweeney has criticized Apple’s plans for complying with the DMA, under which Apple says it still has the right to exclude third-party app marketplaces from its devices under some circumstances. And Fortnite remains unavailable in the App Store in the United States.
For its part, Apple is grappling with an erosion of its App Store business model at the same time it has told investors that iPhone sales this quarter will be billions of dollars lower than what Wall Street expected.
Apple recently engaged in a dispute with Epic Games over developer accounts, which are typically a standard administrative requirement for developers seeking to distribute apps on Apple devices.
After temporarily blocking Epic Games from launching its own online marketplace on iPhones and iPads in Europe, Apple reversed its decision and reinstated Epic Games’ developer account just two days later.
Epic Games announced its intention to proceed with plans to reintroduce the Epic Games Store and Fortnite to iOS devices in Europe following the account restoration.
In response, Epic Games praised the European Commission’s swift enforcement of the Digital Markets Act, signaling accountability for gatekeepers like Apple.
Apple initially terminated Epic’s account, citing concerns about Epic’s compliance with the new rules outlined in the Digital Markets Act. However, following discussions with Epic, Apple reinstated the account after receiving assurances of compliance with its policies, including those outlined in the DMA.