Apple Inc. faces renewed scrutiny from European Union regulators following its clash with Epic Games Inc. over the App Store. The tech giant has been accused of preventing Epic Games from opening its own app store for iPhone users in Europe.

The dispute stems from Apple's termination of Epic Games' developer account, which bars the gaming company from bringing Fortnite and the Epic Games Store to Apple's iOS devices in the EU. Epic Games CEO Tim Sweeney has accused Apple of violating the EU's Digital Markets Act rules.

Epic Games vs. Apple

The European Commission has requested further explanations from Apple under the Digital Markets Act, which aims to regulate tech giants like Apple, Google, Amazon, and Meta Platforms (formerly Facebook). Companies that violate the DMA's guidelines may face fines of up to 10% of their entire annual worldwide revenue. 

This is not the first time Epic Games has clashed with Apple. The developer's account was previously banned in the US for bypassing Apple's payment system, sparking a legal battle between the two companies.

Apple defends its decision to terminate Epic's developer account, citing the gaming company's breach of contractual obligations. The termination comes after Epic requested consultations under the Digital Markets Act and agreed to abide by Apple's rules.

In response to the termination, Epic Games alleges that Apple is retaliating against it for criticizing Apple's proposed DMA rules. On the other hand, Apple questions Epic's trustworthiness and integrity in following the rules.

"In terminating Epic's developer account, Apple is taking out one of the largest potential competitors to the Apple App Store. They are undermining our ability to be a viable competitor, and they are showing other developers what happens when you try to compete with Apple or are critical of their unfair practices," the Fortnite maker said in a recent release.

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Apple and Anti-Competition Allegations

The termination of Epic's developer account has raised concerns about competition on iOS devices. Epic claims that Apple's actions undermine competition and show other developers the consequences of challenging Apple's practices.

Earlier this month, Apple was fined $2 billion in Europe for violating antitrust laws related to its App Store restrictions. The company has defended its rules and stated that the Digital Markets Act is not yet in full effect.

The EU's focus on app stores comes as part of its efforts to regulate the tech industry and ensure fair competition. Margrethe Vestager, the European Union competition chief, has indicated that the bloc will prioritize app stores following the new rules.

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