Apple’s Threat to Epic Games Raises Legal Concerns, EU Commissioner Takes Action
In a surprising turn of events, Apple has once again cancelled Epic Games’ developer account, citing the developer’s public criticisms of the tech giant as one of the reasons. This move has raised legal concerns and caught the attention of the European Commissioner, who has suggested that Apple’s actions may be in violation of the law.
The conflict between Apple and Epic Games began when the game developer introduced its own in-app payment system, in an attempt to avoid Apple’s 30% cut. In response, Apple closed Epic Games’ developer account and the two companies found themselves in court. The outcome of the US court battle, along with the EU’s Digital Markets Act (DMA) law, resulted in Apple being required to allow third-party app stores. However, Apple’s compliance with this ruling has been described as “malicious compliance.”
Apple’s latest move to cancel Epic Games’ developer account for the second time is seen as a threat. Phil Schiller, an Apple executive, cited a critical tweet by Tim Sweeney, the CEO of Epic Games, as one of the reasons for the cancellation. In the email, Schiller highlighted Sweeney’s public criticisms of Apple’s DMA compliance plan, referring to it as “hot garbage,” a “horror show,” and a “devious new instance of Malicious Compliance.” This suggests that Epic Games should refrain from publicly criticizing Apple if it wants to maintain a working relationship with the tech giant.
The European Commissioner, Thierry Breton, wasted no time in addressing the issue. He tweeted a red light emoji and stated that under the DMA, there is no room for threats by gatekeepers to silence developers. He has instructed his team to investigate Apple’s termination of Epic Games’ developer account as a matter of priority. German MEP Andreas Schwab, one of the architects of the DMA, believes that Apple’s actions make it a likely target for non-compliance sanctions under the new law. The DMA allows for hefty fines to be imposed on companies found in breach of the law, potentially costing Apple billions of dollars.
The situation has become a mess for Apple. While the company could have justified its decision to cancel Epic Games’ developer account based on their previous rule-breaking, the inclusion of Epic’s public criticism of Apple has turned it into a more controversial issue. By merging the battles with Epic Games in the US and the DMA in Europe, Apple now finds itself fighting on two fronts in the EU.
Overall, this development raises legal concerns for Apple and puts them in a precarious position. The outcome of the investigation by the European Commissioner will determine whether Apple’s actions are in violation of the law and what consequences they may face. It remains to be seen how this conflict will unfold and what impact it will have on the relationship between Apple and Epic Games, as well as the future of app stores and digital markets.