The EU is examining Apple’s termination of Epic Games’ developer account, a move stemming from Epic’s proposition to launch a proprietary app store for their popular game, Fortnite. Epic Games’ decision has implications for Apple’s monopoly on its app store, a topic of continuous debate. The fallout from this situation could potentially alter how tech giants interact with developers going forward.
The EU’s interest in this scenario is rooted in a dedication to upholding fair competition in the digital marketplace. This reflects the ever-changing landscape of technology, as it consistently pushes against boundaries set by market-leading technology firms. The investigation’s outcome could have profound impacts on Apple, Epic Games, and the broader app development industry.
Apple’s termination allegedly breaches three separate EU legal provisions and violates the impending Digital Markets Act (DMA), as per Epic Games’ claim. This proposed legislation would establish a fair and competitive digital market within the European Union. If found guilty, this could result in significant consequences for Apple.
The European Commission requires more information from Apple regarding these allegations. With the DMA now in effect, Apple needs to supply a comprehensive report which will be scrutinised to determine whether Apple’s actions infringe upon the Digital Services Act (DSA) and the Platform-to-Business Regulation (P2B). Non-compliance could result in serious penalties for Apple.
The proposed DMA refers to Apple as a “gatekeeper” and mandates them to allow third-party app stores within its ecosystem and forbids arbitrary account suspensions. Under these rules, Apple could face stiff fines if found to be in violation.
Defending against the allegations, Apple invokes a U.S court ruling which allows them to terminate Epic Games’ account due to a violation of contract terms. Despite this, Epic’s previous lawsuit accused Apple of exploiting their market dominance by forcing the use of their exclusive payment systems. It suggests a change in the industry, giving companies more freedom to avoid Apple’s payment system.
Although the ruling in the U.S was in Apple’s favour, the new EU DMA obliges Apple to allow alternative app stores and holds Apple accountable to a higher standard for business interactions.
