Apple must explain to EU regulators exactly how its blocking decision complies with the requirements of the Digital Markets Act (DMA).
Recently, Apple released iOS 17.4, allowing users to download applications and games from third-party software stores. Epic was also preparing its own alternative, but due to the fact that its developer account was unexpectedly blocked again, plans have been postponed for now.
Apple initially explained its decision by the “unreliability” of Epic, which responded by claiming a DMA violation and an attempt to prevent “serious competition.” It looks like we should expect another legal battle in the series “Apple vs. Epic Games.” Moreover, the European Commission has already become interested in Apple’s decision to block, demanding additional clarification, Bloomberg reports. Just a week ago, the company was fined nearly $2 billion in the EU for curbing competitors following a Spotify complaint.
The new EU Digital Markets Act aims to make digital markets fairer and more competitive, and introduces strict requirements for companies such as Apple, Google, Amazon and Meta – in case of violation, fines can reach up to 10% of the company's total annual revenue worldwide and 20 % for repeated violation.
The European Commission also said it is reviewing whether Apple's behavior contravenes other digital rules on transparency for business users.
The conflict between Apple and Epic started in 2020, when the latter added its own payment system for virtual currency Fortnite and bypassed the 30% commission on purchases in App Store applications. Apple cut off Epic's access to its app store, which ultimately led to a series of lawsuits.
“Epic's gross violation of its contractual obligations to Apple has resulted in the courts determining that we have the right to terminate the operations of any and all Epic Games subsidiaries,” Apple said in a statement. “In light of Epic’s past and current conduct, Apple has decided to exercise this right.”
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