An epic battle is coming in the EU.
Epic Games, the creator of the hugely popular video game Fortnite, filed a formal complaint with the European Commission against Apple on Wednesday, claiming that the American technology giant violated EU antitrust rules with the App Store and its payment policies. The allegations are similar to those filed by Epic against Apple and Google in US lawsuits
Epic claims that Apple “completely eliminated competition in application distribution and payment processes” with unfair terms and conditions. The game’s developer also claims that iPhonemaker uses control over its proprietary iOS operating system and ecosystem “to benefit itself while blocking competitors,” according to a company statement.
“Apple’s behavior is an abuse of a dominant position and violates EU competition law,” Epic said.
The lawsuit is the latest in a series of lawsuits against Apple, which Epic launched in the United States last summer. Epic’s arguments in the EU, such as the illegality of the mandatory use of Apple’s own purchasing system in the application, reflect other complaints against the Cupertino company for which the European Commission opened surveys in June.
Epic’s move follows a series of recent complaints against tech giants from industry newcomers such as Slack and Telegram. It also highlights the concerns that Brussels is trying to address as part of its new Big Tech regulation, known as the Digital Markets Act (DMA).
“What’s at stake here is the future of mobile platforms,” said Tim Sweeney, CEO of Epic Games. “Consumers have the right to install applications from sources of their choice, and developers have the right to compete in a fair market.”
An Apple spokesman said: “Epic has activated a feature in its app that has not been reviewed or approved by Apple and has done so with the express intent of violating the App Store rules that apply equally to every developer and protects customers ”.
“Their reckless behavior has made customers pawns and we look forward to clarifying this to the European Commission,” the spokesman added.
The Commission confirmed receipt of the complaint and stated that it would “assess it on the basis of standard procedures”.
The debate began after Epic introduced a direct payment system at Fortnite to bypass Apple and Google app stores, which took a 30% share of revenue from using their own payment processing systems. The two app store owners reacted by blocking Fortnite players from installing and updating the game through the Apple App Store and Google Play, arguing that the Epic payment system does not comply with their terms and conditions.
Epic took Apple and Google to court in the US in August. He also sued Apple in Australia in November and in the UK in January for the same issue.
The gaming company insisted it was not seeking damages. “Epic just wants a policy change,” Sweeney told reporters Tuesday before the announcement.
EU digital regulation handbook
“The DMA proposal includes provisions that would address the potential of Epic’s claim,” the company’s antitrust lawyer, Thomas Vinje, told reporters. But DMA is not enough and will not be prepared fast enough, he said.
EU regulation will require so-called gatekeepers – companies that have power and control over the entire ecosystem of the platform – to apply “fair, reasonable and non-discriminatory” taxes to businesses that sell through app stores. But “open[ing] competition in stores … is not enough, ”said Sweeney. “It’s also essential to open payments.”
Since “it will take quite a while” for the DMA to take effect, Vinje said, “now is the time to move” on the antitrust front. He acknowledged that the provisions in the DMA “indicate” that the Commission “understands that this is a very big issue”.
Brussels opened two official trials against Apple over its rules in the App Store in June, focusing on streaming music and e-books. The Telegram messaging app has raised concerns about Apple’s revenue-sharing rules in Brussels in a formal complaint in July.
Sweeney said he did not file a complaint against Google with the Commission, but did not rule it out in the future. “Right now we are focusing on Apple,” said the head of Epic, adding that he still has the best approach to these issues.
There are differences between Google and Apple, he continued, but “the underlying concern for both is uniform.”
Update: The article has been updated to include the Commission’s response.
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