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Apple retreats in Epic feud, allows Fortnite return in EU

By Reuters   |   Mar 8, 2024 at 02:02 PM EST
Apple retreats in Epic feud, allows Fortnite return in EU

By Stephen Nellis and Akash Sriram

(Reuters) -Apple took a step back in its feud with Epic Games on Friday, clearing the way for the Fortnite videogame maker to launch its own online marketplace on iPhones and iPads in Europe.

Earlier this week, Apple had taken steps to block Epic from bringing back the popular game, which Apple removed from its App Store in 2020 after Epic broke the iPhone maker's in-app payment rules in protest.

Apple's decision to open its door to Epic follows the European Union's Thursday deadline for Big Tech companies to comply with the Digital Markets Act (DMA), a set of rules that bans Apple and Google from controlling which apps are distributed on devices with the iOS and Android operating systems.

Epic and Apple have been in a legal battle since 2020, when the gaming firm alleged that Apple's practice of charging up to 30% commissions on in-app payments on its iOS devices violated U.S. antitrust rules. Epic lost its court battle against Apple, and the game maker's bold gambit to intentionally break Apple's rules as a protest got it banned from Apple's devices.

Other Apple critics that have not purposely broken Apple's rules - even ones such as Spotify , which earlier this week prevailed in persuading EU antitrust regulators to impose a 1.84 billion euros ($2 billion) fine for anticompetitive actions in the digital music market - have not been removed Apple's App Store.

The most recent tangle between Apple and Epic involved Apple's developer accounts, which are normally a minor but necessary administrative step for developers before selling apps on Apple devices.

Apple on Friday reinstated Epic Games' developer account two days after it had blocked the company from launching its own online marketplace on iPhones and iPads in Europe.

The game developer said it will move on with its plans to bring the Epic Games Store and the Fortnite game back to iOS in the continent.

"This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable," Epic Games added.

Apple earlier this week said it had terminated Epic's account because the company's actions made it doubt whether it intended to follow the new rules Apple has set out to comply with the DMA.

"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," Apple said in a statement.

(Reporting by Akash Sriram in Bengaluru and Stephen Nellis in San Francisco; Editing by Krishna Chandra Eluri and Marguerita Choy)

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