Tim Sweeney, CEO of Epic Games, has sharply criticized Apple’s recently announced changes to the App Store in the European Union. While the changes were designed to comply with the Digital Markets Act (DMA), Sweeney believes they follow the letter of the law rather than the spirit. The DMA aims to promote fairer competition in the digital market by placing restrictions on dominant tech companies like Apple.
Sweeney, in a tweet, characterized Apple’s plan as a “devious new instance of Malicious Compliance.” He argues that the new business terms essentially force developers to choose between remaining on the App Store with its existing terms or adopting a new scheme with “Junk Fees” and “Apple taxes” on transactions they don’t process. He further contends that Apple’s proposal allows the company to choose which stores can compete with the App Store, potentially barring rivals like the Epic Games Store.
Apple’s announced changes include allowing alternative app stores and payment processing options for developers in the EU. However, Sweeney expresses concern that these options come with caveats, including reduced commissions alongside the introduction of new fees. He criticizes these fees, particularly the “Core Technology Fee” of €0.50 per annual install for apps exceeding one million downloads, as unfair and anti-competitive.
To be honest, it does sound like Apple is just trying to get their fee any way they can. While they open the store to competitors, they’re introducing new charges to those competitors. Instead of being able to compete freely, any competitor of Apple has to pay Apple just to compete.
While Sweeney supports Apple’s security measures like app notarization and malware scanning, he objects to their potential use to hinder competition and maintain Apple’s control over app distribution and payments. He reiterates Epic’s commitment to launching on iOS and Android, advocating for a more open and competitive app market with lower fees and greater developer freedom.
Apple, in its official press release, frames the changes as necessary to comply with the DMA while protecting user privacy and security. They emphasize the safeguards to mitigate risks associated with the new options, such as app installation sheets and authorization requirements for marketplaces. Additionally, they emphasize the continuation of the App Store’s secure payment processing and existing business terms for developers who choose to avoid adopting the new options.
It’s easy to see what Sweeney is saying because it feels like you lose if you try to compete. However, Epic Games and Apple have been against each other for a while. We’ll have to wait and see how other developers respond.
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