Apple and Epic Games’ ongoing feud has taken a new turn in Europe, with Apple blocking Epic Games from launching its own online marketplace on iPhones and iPads. The dispute between the two tech giants began with Epic Games’ allegations that Apple’s 30% commission on in-app payments violates U.S. antitrust rules.
European lawmakers have stepped in, enforcing the Digital Markets Act, which requires Apple to allow third-party marketplaces on its devices. This new regulation comes into effect this week. Brussels antitrust regulators have also fined Apple a hefty sum of 1.84 billion euros for impeding competition from music streaming rivals through restrictions on the App Store.
In response to the escalating tensions, Apple has terminated Epic’s new developer account in Sweden, citing previous breaches of contract amidst the legal battle. Epic Games has accused Apple of violating the DMA by blocking its attempts to create its own game store on Apple’s devices.
To comply with the DMA ahead of a March 7 deadline, Apple has proposed changes, including allowing alternative app stores on iPhones and giving users the option to opt-out of using in-app payments for a fee of 50 euro cents per user account per year. This move marks a significant shift in Apple’s business practices and could have far-reaching implications for the app marketplace ecosystem.
The tech industry will be closely watching how this conflict unfolds, as it could potentially reshape the relationship between app developers and platform owners like Apple. Stay tuned to Poh Diaries for the latest updates on this developing story.
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