In a landmark reversal, Apple has cleared the path for Epic Games to launch a rival app store on iPhones across Europe, a move forced in part by the European Union’s new Digital Markets Act (DMA).
This shift marks a significant turning point in the prolonged legal and regulatory feud between Apple and the creator of Fortnite, stemming from Apple’s long-standing dominance over iPhone app distribution and its controversial 15%–30% commission structure on in-app purchases.
Regulatory Pressure Breaks Apple’s App Store Monopoly
The reversal comes after Apple initially rejected Epic’s request to set up a developer account in Europe — a prerequisite to launch its own iOS app store. But with the DMA taking effect this week across the EU’s 27 nations, regulators hinted Apple’s refusal may have violated new competition rules, putting the tech giant at risk of major penalties.
Apple later issued a brief statement saying it was now “satisfied” that Epic would follow the rules, though it did not explicitly reference regulatory pressure as the reason for the decision. Epic CEO Tim Sweeney quickly responded with praise for EU regulators, calling the development:
“A big win for European rule of law, for the European Commission, and for the freedom of developers worldwide to speak up.”
Epic vs Apple: A Feud Years in the Making
The animosity between the two companies goes back to 2020, when Epic deliberately broke Apple’s in-app purchase rules in the U.S. to prompt an antitrust lawsuit. The resulting legal battle saw a partial victory for Apple in 2021 after a federal judge ruled against most of Epic’s claims — a decision that held through appeals.
Despite the courtroom loss, Epic remained vocal against Apple’s practices, labeling the iPhone App Store’s commission structure as monopolistic price gouging. The tension resurfaced in Europe as Epic sought to use the DMA to circumvent Apple’s restrictions and launch its own app store.
What is the Digital Markets Act (DMA)?
The DMA is a sweeping regulatory framework introduced by the European Union aimed at curbing the power of digital “gatekeepers” like Apple, Google, and Meta. Under the DMA, platforms designated as gatekeepers must allow fair competition and cannot block alternative services — such as third-party app stores — on their ecosystems.
Apple’s initial rejection of Epic’s Sweden-based developer account drew attention from EU watchdogs, leading to warnings that such action could constitute non-compliance with the DMA, triggering potentially substantial fines.
Broader Implications for the App Economy
This development is poised to reshape the iOS ecosystem in Europe. With Epic gaining the green light to set up a competing app store, other developers may soon follow suit, breaking Apple’s ironclad grip over iOS app distribution — at least within the EU.
Still, the conflict is far from over. Apple is currently demanding $73 million in legal fees from Epic over the U.S. trial — a figure Epic has blasted as “outlandish.” A hearing on the matter is scheduled for later this month.
Conclusion
While Apple maintains control over iOS globally, this latest episode signals that even the most powerful tech giants are not immune to regulatory pressure. With the DMA now in effect, the European Union has set a precedent that may influence digital antitrust battles worldwide.
As Epic prepares to roll out its app store on iPhones in Europe, the world will be watching — not just for the apps it offers, but for how this move impacts Apple’s global App Store business model.
Quick Summary
- Apple reversed decision and approved Epic’s app store under EU pressure
- EU Digital Markets Act is key to the regulatory shift
- Epic Games plans to launch an iPhone app store in Europe
- Tim Sweeney praises regulators for defending developer freedom
- Apple and Epic still locked in U.S. legal disputes over antitrust fees
