Epic Games sues Apple for antitrust violations in Europe.

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Epic Games sues Apple for antitrust violations in Europe.

Epic Games has filed an antitrust complaint against the European Union, alleging that Apple is using a "carefully designed set of anticompetitive restrictions" to eliminate competition in its mobile app distribution and payment processing systems. Simply put, Epic takes issue with Apple's insistence that all iOS applications be distributed through its App Store and its exclusive use of Apple's payment processing system. The EU complaint, filed with the European Commission's Directorate-General for Competition, is Epic's third complaint against Apple, following similar complaints already filed in the US, Australia, and the UK. [Tim Sweeney, founder and CEO of Epic Games, said in a statement, "What is at stake here is the future of mobile platforms themselves. Consumers have the right to install apps from the source of their choice, and developers have the right to compete in a fair marketplace. We will not stand by and watch Apple use its platform dominance to control what should be a level digital playing field.

"It sucks for consumers who are paying inflated prices due to competition between stores and a complete lack of in-app payment processing. And it's bad for developers whose very livelihoods often depend on Apple's complete discretion on who they allow on the iOS platform and on what terms.

The battle between Epic and Apple began in August 2020, when Epic added a new payment system to the iOS version of Fortnite that could be used on Apple's behalf. Epic's payment system was in direct violation of Apple's policies, and Apple almost immediately removed Fortnite from its App Store in retaliation; Epic responded with "Nineteen Eighty-Fortnite" promotion, and minutes later (remember, this all happened on the same day), sued Apple over the removal of Fortnite.

Since then, Apple has launched a countersuit against Epic, and Epic has won a small victory in the form of a preliminary injunction preventing Apple from blocking the Unreal Engine in the App Store; Epic filed suit in November 2020 against Apple Australia initiated legal proceedings against it and in January 2021 filed a complaint in the UK Competition Appeal Court.

Sweeney has also been active on social media on the issue:

In a statement sent to Business Insider, Apple said Epic's "reckless behavior has turned [customers] into pawns."

"Epic is one of the most successful developers on the App Store and has grown into a multi-billion dollar business reaching millions of iOS users worldwide, including in the EU." In what the judge described as a deceptive and surreptitious manner, Epic enabled features in its app that were neither reviewed nor approved by Apple, and did so with the clear intent to violate the App Store Guidelines, which apply equally to all developers and protect customers.

In a Twitter response, Sweeney took issue with Apple's position, stating that "Apple's rules make all consumers and businesses pawns in the app economy."

One thing that could work in Epic's favor is that the European Commission is already investigating whether Apple Pay violates EU rules on competition. In a June 2020 statement, the Commission stated that its preliminary investigation found that "Apple's terms and conditions and other measures related to the integration of Apple Pay for the purchase of goods and services on merchant apps and websites on iOS/iPadOS devices distort competition and reduce choice and innovation We are concerned about the potential for this to happen." "

The EU has previously taken action against companies that break its rules: in January, it fined Valve, Namco Bandai, Capcom, Focus Home Interactive, Koch Media, and ZeniMax a total of 7.8 million Euro (US$9.4 million) fines for violating antitrust laws. [This is a much bigger issue than Epic v. Apple and goes to the heart of whether consumers and developers can do business directly on mobile platforms or are forced to use exclusive channels against their will and interests. Epic is asking the European Commission to provide a timely and effective remedy for Apple's anti-competitive conduct...Epic is not seeking damages against Apple, as it is doing in the United States, Australia, and the United Kingdom. It is simply seeking fair access and competition that benefits consumers and developers.

The EU has not yet publicly commented on the matter, but litigation between Epic and Apple in the US is scheduled to begin on May 3, following a pre-trial conference on April 21.

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