Apple terminates Epic Games developer account
The gaming company says Apple is eliminating one of the most significant potential competitors to the Apple App Store by terminating its developer account
In a dramatic turn of events, Epic Games revealed on Wednesday that Apple has terminated its developer account, casting doubt on the gaming company's plans to launch its own app store on iOS devices in the EU.
Apple's decision, communicated to Epic through a letter from its legal team, cited contractual rights allowing termination at its sole discretion.
The move marks a significant twist in the narrative, as just last month, Epic Games had received approval for its account, with hopes of reintroducing Fortnite to iOS devices in the EU with the advent of the Digital Markets Act (DMA).
"We've received our Apple Developer Account and will start developing the Epic Games Store on iOS soon thanks to the new Digital Markets Act," Epic Games said at that time.
"We plan to launch in 2024. Epic Games Sweden AB will operate the mobile Epic Games Store and Fortnite in Europe, with the Store team leading development."
The conflict between the two companies dates back to 2020 when Epic Games accused Apple of monopolistic practices, particularly its hefty commissions of up to 30% on in-app purchases.
Despite recent legislative developments such as the DMA in the EU, which aims to foster competition by requiring Apple to allow third-party app stores on its devices, the tensions between the two companies remain high.
When Epic Games said last month that it had secured a developer account in Sweden, the move was seen as a strategic step towards bringing its online marketplace, the Epic Games Store, and Fortnite to iOS devices in Europe.
However, Apple has now terminated this account, sparking renewed accusations from Epic Games.
In a scathing statement, Epic accused Apple of undermining competition and stifling dissent within the tech industry.
It lambasted Apple's action, alleging that by terminating its developer account, Apple is effectively eliminating one of the most significant potential competitors to the Apple App Store. The gaming company argued that this move not only hampers its ability to compete but also sends a chilling message to other developers considering challenging Apple's dominance.
It criticised Apple's rationale for terminating its developer account, particularly citing public criticism of Apple's proposed compliance plan under the DMA. The gaming company also accused Apple of retaliating against it for speaking out against what it deems as Apple's unfair and illegal practices.
Epic Games has been vocal in its criticism of Apple's implementation of changes under the DMA, particularly objecting to the proposed "Core Technology Fee" for app installs in the EU.
Apple's claim that Epic Games poses a threat to its ecosystem was vehemently rejected by Epic Games, which highlighted its longstanding relationship with Apple, including contractual agreements dating back to 2010.
Apple defended its decision, citing Epic Games' past breaches of contractual obligations. The iPhone maker said a 2021 judgment grants it the right to terminate Epic Games' subsidiaries at its sole discretion.
"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 behaviour, Apple chose to exercise that right," Apple said.
It added that Epic Games Sweden's entry into the Apple Developer Program Licence Agreement was based on a click-through agreement without executive review by Apple.