Earlier this week Apple put the kibosh on Epic’s plans to launch the Epic Games Store for the iPhone in the EU where such a thing is possible thanks to the Digital Markets Act (DMA). But on Wednesday, the tech giant closed Epic’s Developer Account in the EU which prevented the company from offering its Epic Games Store to iPhone users in the 27 EU countries. As you might know, the DMA forced Apple to allow iPhone users in the EU to sideload apps from third-party app stores.
Epic blamed the move on Apple’s desire for revenge after Tim Sweeney, CEO of the video game developer, criticized Apple for some of the fees it will be collecting in the EU. The DMA also forces Apple to allow developers to promote third-party in-app payment platforms circumventing the 30% cut of in-app transactions that Apple takes when it uses its own in-app processing platform.
Apple said that it had the right to terminate Epic’s EU Developer Account due to a past court ruling that pointed out Epic’s “egregious breach of its contractual obligations.” Last Wednesday, Apple said, “In light of Epic’s past and ongoing behavior, Apple chose to exercise that right.” But over the last two days, Apple and Epic sat down to talk and Epic convinced Apple that it wouldn’t break the rules as it did four years ago.
In 2020, Epic tried to sell its VBucks currency directly to Fortnite players violating Apple’s App Store rules
Back in 2020, Epic slipped in a page to the iOS version of Fortnite that allowed users to buy VBucks game currency directly from Epic instead of going through the App Store as Apple’s rules dictated. Because this would have allowed Epic to skip paying Apple its 30% cut of in-app purchases, Epic was directly selling its game currency for less than the price listed in the App Store.
Apple kicked Epic out of the App Store in 2020 for selling its VBucks game currency to iPhone users outside of the App Store
Apple has officially changed its mind today and in an update to its blog post published on Wednesday (via 9to5Mac), Epic Games wrote “Apple has told us and committed to the European Commission that they will reinstate our developer account. This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable. We are moving forward as planned to launch the Epic Games Store and bring Fortnite back to iOS in Europe. Onward!”
Had Apple not changed its mind, it could have faced a $38.3 billion penalty or 10% of its fiscal 2023 revenue
Apple might have been convinced to change its mind because of the hefty penalty that the EU can impose on those companies that fail to follow the DMA. Companies like Apple can be find up to 10% of their global revenue while repeat offenders can be slapped with a fine of up to 20% of their annual revenue. Had Apple not reversed its position on Epic and been called out by the EU for failing to adhere to the DMA, the company could have been fined up to $38.3 billion, 10% of its fiscal 2023 worldwide revenue.
In a statement released today, Apple said, “Following conversations with Epic, they have committed to follow the rules, including our DMA policies. As a result, Epic Sweden AB has been permitted to re-sign the developer agreement and accepted into the Apple Developer Program.” So if you are that much of a Fortnite fan, you can simply quit your job, sell your home, pack up your belongings, and move to the EU. Of course, you’ll have to buy a new iPhone sold in one of the 27 EU countries (you can trade in your current model) and hopefully, you’ll be able to find a job in that region.
