Epic Games, Spotify And Many Others Accuse Apple Of Not Complying With EU’s Digital Markets Act!

In a world where big tech companies can disrupt smaller companies through acquisitions or reducing their access to customers, regulatory bodies fight to ensure competition remains strong and smaller rivals are provided fair opportunities.

This is what the European Union’s (EU) European Commission (EC) had in mind when it brought in the Digital Markets Act (DMA).

As per the EU's politically independent executive arm’s website, the act is aimed at “ensuring fair and open digital markets.”

The act came into existence because “Some large online platforms act as "gatekeepers" in digital markets. The Digital Markets Act aims to ensure that these platforms behave in a fair way online.”

Yet, according to Epic Games, tech conglomerate Apple isn’t following the directives issued by the EC’s Digital Markets Act.

However, it isn’t just Epic Games that’s unhappy with Apple, a bunch of other companies and EU Associations, got together to draft a letter to the European Commission addressing Apple’s lack of DMA compliance.

So, what did the letter say and what difficulties is Epic Games facing? Let’s explore!
 

What Did The Letter Say?

 

• According to a letter posted by Spotify on its website, the other companies include Adevinta, Beonex, Blockchain.com, Cafeyn, Deezer, iconomy, Mustang, Paddle, Parula, Proton, Schibsted, 37signals, SkyDemon, Threema, Uptodown, and Vipps MobilePay.

• An excerpt from the letter reads, “We are 34 companies and associations operating across a wide range of digital sectors, including aviation, publishing/press, gaming, commercial radios, audio streaming, applications software, communications, marketing, payment, fintech, crypto and marketplaces.”

• The group, which “represents tens of thousands of businesses of all sizes” serving hundreds of millions of customers across Europe, conveys its concern about Apple’s proposed scheme to comply with the DMA and believes it wouldn’t meet the law’s requirements.

• “Apple’s new terms not only disregard both the spirit and letter of the law, but if left unchanged, make a mockery of the DMA and the considerable efforts by the European Commission and EU institutions to make digital markets competitive,” said the letter, which goes on to list the avenues of Apple’s non-compliance.

• The move comes ahead of the DMA’s implementation deadline, which is set for March 7, 2024.

 

What Did Epic Games Say?

 

• Epic Games has been at odds with Apple since 2020, in which the company sued both Apple and Google for unfair rules resulting in both companies removing Epic Games’ Fortnite from their app stores. 

• These rules included Apple charging up to 30% commissions on in-app payments.

• However, as per Google and Apple, Epic Games violated in-app payment guidelines by rolling out a direct payment feature.

• Coming to 2024, Epic Games announced that Apple had approved its Epic Games Sweden AB developer account, allowing the company to “use that account to bring the Epic Games Store and Fortnite to iOS devices in Europe thanks to the Digital Markets Act (DMA).”

• Furthermore, it would bring more opportunities to developers across all platforms, as mentioned by the company through a post on X dated February 16, 2024.

• On March 6, 2024, Epic Games posted a news story on its website saying, “Apple has terminated that account and now we cannot develop the Epic Games Store for iOS.”

• “This is a serious violation of the DMA and shows Apple has no intention of allowing true competition on iOS devices,” the article said, adding, “In terminating Epic’s developer account, Apple is taking out one of the largest potential competitors to the Apple App Store.”

• One of the reasons cited for the move included Apple taking offense to Epic Games’ public criticism of Apple’s proposed DMA compliance plan, even referring to an X post and thread by Epic Games founder and CEO, Tim Sweeney.

• The article further reads that Apple claims Epic Games to be a threat to their ecosystem, while going on to list the various ways the two companies have worked together in the past decade and ultimately inserting screenshots of emails exchanged between the two. 

Recently, Apple said that it communicated with thousands of developers to discuss DMA-related changes to iOS, Safari and its App Store. As a result, the company conveyed it brought about updates to its app distribution with revised policies.

However, do you think Apple has done wrong by Epic Games or does the company hold a valid reason for removing Epic Games’ account from its platform?

Do you think the EU should investigate Apple’s changes to ensure they’re complying with the DMA rules?

Let us know in the comments below!