December 24, 2024

Epic Games Inc. CEO Tim Sweeney speaks during an interview on Tuesday, November 16, 2021, in Seoul, South Korea.

Cho Sung-jun | Bloomberg | Getty Images

apple Epic Games has been approved for a developer account in Sweden, which will allow the company to offer competing app stores on iPhones in Europe under new antitrust regulations called the Digital Markets Act.

Earlier this week, Epic Games CEO Tim Sweeney cited an email from Apple App Store chief Phil Schiller to Sweeney saying Apple was retaliating against the company’s lawsuit by blocking Swedish accounts. and social media criticism.

The incident is one of the first challenges to Europe’s DMA by one of the tech giants it regulates, and raises questions about whether the law’s fines and penalties are enough to curb some of the practices it targets. Apple’s quick about-face suggests European regulators will be able to enforce the law.

“This sends a strong signal to developers that the European Commission will act quickly to enforce the Digital Markets Act and hold gatekeepers accountable,” Epic Games said in a statement.

Apple’s App Store accounts for 30% of game purchases and 15% of online subscriptions. Before the introduction of DMA in Europe, this was basically the only way to install apps on the iPhone. New rules force Apple to allow third-party app stores on iPhones in Europe, but Apple says it can charge half a euro per download, a pricing strategy that has drawn criticism from app developers.

Immediately after Epic’s announcement, European regulators said they would pressure Apple to respond to the incident. Sweeney said on social media on Friday that Apple had allowed Epic Games to open the store following an investigation by the European Commission.

Earlier this week, Sweeney said it was shocking that Apple continued to block the company’s developer accounts in Europe. Schiller, the head of Apple’s App Store, wrote a letter to Sweeney asking if he would abide by Apple’s future contracts despite the 2020 lawsuit, and Sweeney agreed. Still, an Apple lawyer rejected Sweeney’s statement and blocked Epic’s European accounts, according to emails provided by Epic Games.

An Apple spokesperson confirmed that Epic Games’ account had been reinstated after Epic informed Apple that it would comply with its platform policies.

In an interview with CNBC, a spokesperson said: “Following conversations with Epic, they have committed to complying with the rules, including our DMA policy. As a result, Epic Scrpland AB has been allowed to re-sign the developer agreement and accept the Apple Developer Program Painting.” a statement.

Epic Games said it will use the account to publish the iPhone version of “Fortress Heroes” in Europe as well as its own Epic Games store.

The conflict between Epic Games and Apple dates back to 2020, when Epic Games updated shooter Fortnite to bypass Apple’s 30% cut of App Store sales. Apple removed Fortress Heroes from its store, and Epic filed a lawsuit in the United States to force Apple to open up its platform.

Epic lost most of the lawsuit but won some concessions under California law.

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