Epic Games CEO Tim Sweeney has expressed his dissatisfaction with Apple’s latest App Store regulations, labeling them as a form of “malicious compliance” and containing what he refers to as “junk fees.” The new rules, which are set to be implemented in the EU as part of Apple’s compliance with the Digital Markets Act (DMA), specifically target larger developers such as Epic.
Key Takeaway
Epic Games CEO Tim Sweeney has voiced strong opposition to Apple’s new App Store rules, citing concerns about anti-competitive practices and the imposition of additional fees on developers.
Apple’s New Rules and Fees
Apple’s new regulations include the imposition of a “core technology fee” of €0.50 for each install per year over a 1 million threshold for larger developers. This fee is aimed at apps that are downloaded from sources outside of Apple’s App Store. Additionally, Apple has announced a reduction in its App Store commissions for digital goods and services to 17% and as low as 10% for subscriptions in their second year, for small business developers who qualify. However, developers who opt to use Apple’s payment processing technology will be subject to an additional 3% fee.
Tim Sweeney’s Response
In response to these new rules, Epic Games CEO Tim Sweeney has criticized Apple’s terms as “anti-competitive.” Sweeney has specifically highlighted the “junk fees” in reference to the new “core technology fee” and has expressed concerns about Apple’s control over app distribution and the imposition of additional fees.
Apple’s Stance and Impact on Developers
Apple’s stance on the entitlement to commissions for apps downloaded from sources outside of the App Store has raised concerns about the company’s control over the app ecosystem. The new regulations and fees could significantly impact developers, particularly larger ones such as Epic Games, which may incur substantial costs for app installs.
Challenges and Legal Disputes
Sweeney’s comments come in the wake of legal disputes between Epic Games and both Apple and Google over antitrust concerns. While Apple emerged victorious in its case, the court’s ruling mandated certain concessions from Apple. Sweeney has indicated plans to contest Apple’s compliance with the court’s ruling, citing “bad-faith” practices.
Conclusion
Apple’s new App Store rules and fees have sparked criticism from Epic Games CEO Tim Sweeney, who has raised concerns about anti-competitive practices and the financial burden on developers. The ongoing legal disputes between Epic Games and Apple underscore the challenges in the app ecosystem and the broader implications of platform regulations.
