The Apple-Epic saga takes a turn today with Fortnite game developer Epic Games revealing that Apple has terminated its developer account. That is a sharp reversal from what is assumed to be the approval by Apple last month of Epic's account in which Epic said would permit it to bring back Fortnite on iOS devices within the EU by the region's new law, the Digital Markets Act. But Epic now says Apple's lawyers have sent it a letter saying it's terminating its Epic Games Sweden AB account--a move Epic calls a "serious violation of the DMA" and an indication that Apple has no intention of "allowing true competition on iOS devices.".
"In terminating Epic's developer account, Apple is eliminating one of the biggest potential competitors to the Apple App Store. They are impairing our ability to be a viable competitor and they are showing other developers what happens when you try to compete with Apple or are critical of their unfair practices," Epic writes on its company blog, where it has also published copies of its correspondence with Apple.
The game developer claims that among reasons which Apple has cited in defense of its actions, was a complaint from Apple about the criticism leveled by Epic of Apple's proposed DMA rules such as an criticisms made by the CEO of Epic Games, Tim Sweeney, when he wrote this on X (formerly Twitter):. Of course, Apple would not be happy about being dragged to court, especially when Epic has done so for genuine antitrust concerns it presented and actually lobbied for regulatory action against Apple in many markets to restrain its hegemony in the app economy. Apple would therefore more than be champing at the bit to get rid of Epic, as reportedly the company itself told Epic it is a "threat to their ecosystem.".
However, Epic said it has publicly announced its intentions and again written to Apple reassuring the company in writing that it will comply to all conditions of its developer agreements after asking for one of the DMA consultations that Apple is providing its App Store developers. After agreeing to comply, after all, it was the lawyers from Apple who sent the termination letter on the account of Epic Games Sweden AB.
Epic is retaliating against the tech giant, according to a letter written by Apple exec Phil Schiller.
"In the past, Epic has entered into agreements with Apple and then broken them," Schiller reminds the game maker in the letter dated February 23, 2024. "You also testified that Epic deliberately violated Apple's rules, to make a point and for financial gain.". You more recently described our DMA compliance as 'hot garbage,' a 'horror show,' and a 'devious new instance of Malicious Compliance.' And you complained about what you called 'Junk Fees' and 'Apple taxes."
Moreover, Schiller suggested that Epic's "colorful criticism" melded with their past behaviors "strongly suggests that Epic Sweden does not intend to follow the rules." The second willful violation would "threaten the integrity of the iOS platform, as well as the security and privacy of users," he mentioned.
".in plain, unqualified terms, please tell us why we should trust Epic at this time," he concluded.
It also stated that it had contracted with Apple since 2010 regarding both Epic's Games, Unreal Engine, and other creator tools and that Apple itself publicly expressed that it supported Epic's Unreal Engine.
Apple responded to the news by Epic in the following way:
Epic's blatant failure to live up to its contractual obligations to Apple led courts to decide that Apple has a right to end "any or all of Epic Games' wholly owned subsidiaries, affiliates and/or other entities under Epic Games' control at any time and at Apple's sole discretion." Given the nature of past as well as continuing actions by Epic, Apple made the decision to exercise that right.
The company further informed us that its right to sever Epic's account is anchored on the judgment that came out in September 2021 following Epic's litigations against Apple. This judgment further opined that "Apple has the contractual right to terminate its DPLA with any or all of Epic Games' wholly owned subsidiaries, affiliates, and/or other entities under Epic Games' control at any time and at Apple's sole discretion.".
Apple further pointed out that Epic Games Sweden had agreed to the Apple Developer Progam License Agreement through a click-through agreement, which up to date, did not have any executive review by Apple.
Later in the day on Wednesday, Sweeney updated on the situation, thanking those for speaking up against Apple and noting that the company had served over 270 million customers on the PC. The EU said it also would investigate Apple's decision to kill Epic's account.
Thanks to everyone who is speaking up against Apple blocking Epic from competing with their App Store.
On PC we already have reached more than 270,000,000 users, so the victims of Apple's competition bans include hundreds of millions of future customers on iOS who are denied something better.