Earlier this week, Apple fired Epic's plans to launch the Epic Games Store for iPhone in the EU, where such a thing is possible thanks to the Digital Markets Act (DMA). But on Wednesday, the tech giant shut down Epic's EU developer account, preventing the company from offering its Epic Games Store to iPhone users in the 27 EU countries. As you may know, the DMA forced Apple to allow
iPhone users in the EU to download apps from third-party app stores.
Epic blamed the move on Apple's desire for revenge after Tim Sweeney, the
video game developer's CEO, criticized Apple for some of the fees it allegedly collects in the EU. The DMA also requires Apple to allow developers to promote third-party payment platforms in the app, bypassing the 30% cut of in-app transactions that Apple takes when using its own in-app processing platform. application.
Apple said it had the right to terminate Epic's European developer account due to an earlier court ruling highlighting Epic's “blatant violation of its contractual obligations.” Last Wednesday, Apple said: “In light of Epic's past and current behavior, Apple has chosen to exercise this right. ” But over the past two days, Apple and Epic sat down to talk and Epic convinced Apple that it wouldn't break the rules like it did four years ago.
In 2020, Epic attempted to sell its VBucks currency directly to Fortnite players, in violation of Apple's App Store rules.
In 2020, Epic moved a page to the iOS version of Fortnite that allowed users to purchase the in-game currency VBucks directly from Epic instead of through the App Store as Apple's rules dictated. Because this would have allowed Epic to avoid paying Apple its 30% cut on in-app purchases, Epic sold its in-game currency directly at a lower price than the price listed in the App Store.
Apple kicked Epic out of the App Store in 2020 for selling its in-game currency VBucks to iPhone users outside of the App Store
Apple officially changed its mind today and
an update to his blog post published Wednesday (via
9to5Mac), Epic Games wrote “Apple has told us and committed to the European Commission to reinstate our developer account. This sends a strong signal to developers that the European Commission will act quickly to enforce the law on digital markets and hold gatekeepers accountable. We are moving forward as planned to launch the Epic Games Store and bring Fortnite back to iOS in Europe. Ahead !”
If Apple hadn't changed its mind, it could have faced a penalty of $38.3 billion, or 10% of its fiscal 2023 revenue.
Apple may have been convinced to change its mind because of the heavy sanctions the EU can impose on companies that fail to comply with the DMA. Companies like Apple can be fined up to 10% of their global turnover, while repeat offenders can be fined up to 20% of their annual turnover. Had Apple not changed its stance on Epic and been criticized by the EU for not joining the DMA, the company could have been fined up to $38.3 billion , or 10% of its global turnover for the 2023 financial year.
In a statement today, Apple said: “Following conversations with Epic, they are committed to following the rules, including our DMA policies. As a result, Epic Sweden AB was allowed to re-sign the development agreement and accepted into the Apple agreement. Developer Program.” So if you're a big Fortnite fan, you can just quit your job, sell your house, pack up your stuff and move to the EU. Of course, you'll have to buy a new iPhone sold in the EU. one of 27 EU countries (you can exchange your current model) and hope you can find a job in this region.
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