Apple Approves Epic Games' App Marketplace in EU
Apple's Approval of Epic Games' Third-Party App Marketplace in EU Marks Policy Shift
Apple has finally approved Epic Games' third-party app marketplace for launch in the EU, following multiple rejections. This approval comes after Epic Games announced plans earlier this year to reintroduce both its digital storefront and Fortnite to iOS in Europe, in compliance with the EU’s Digital Markets Act (DMA). Initially, Apple rejected Epic's submission twice, citing concerns that the Epic Games Store resembled the Apple App Store too closely, particularly with the "Install" button and the "in-app purchase" label.
Epic Games expressed their frustration on social media, labeling Apple's rejections as arbitrary and obstructive, and in violation of the DMA. They even considered involving European regulators. However, Apple later approved the marketplace on the condition that Epic makes necessary corrections in a subsequent update. Apple's approval is significant as it marks a shift in their policy, allowing third-party app stores on iOS for the first time under the new DMA rules.
Epic Games has been fighting for years to reach iPhone users without paying commissions on in-app purchases, a battle that has seen them in court in the U.S. and facing temporary bans in the EU. With this approval, Epic is set to launch both Fortnite and its Games Store on iOS in the EU, potentially paving the way for other developers to explore similar options.
Key Takeaways
- Apple approves Epic Games' third-party app marketplace for EU launch after initial rejections.
- Epic Games faced rejection due to similarities between its "Install" button and Apple's "Get" button.
- Apple's approval comes with conditions for design corrections in a subsequent update.
- Epic Games argues Apple's rejections are arbitrary and violate the EU’s Digital Markets Act.
- The approval marks a significant shift under EU rules allowing third-party app stores on iOS.
Analysis
The approval of Epic Games' marketplace in the EU signals a policy shift by Apple, influenced by the EU’s Digital Markets Act. This move impacts Apple's revenue model, potentially reducing in-app purchase commissions. Epic Games benefits directly, enhancing market presence and revenue streams. Other developers may follow suit, pressuring Apple to adapt globally. In the short term, Apple faces regulatory scrutiny and potential revenue loss. Long-term, this could lead to broader industry changes in app distribution and monetization.
Did You Know?
- Digital Markets Act (DMA):
- The DMA is a regulatory framework enacted by the European Union to ensure fair competition and transparency in the digital market. It aims to prevent large tech companies, often referred to as "gatekeepers," from abusing their market dominance. The act includes provisions that require these companies to allow third-party interoperability and prevent them from preferential treatment of their own services.
- Third-party app marketplace:
- A third-party app marketplace refers to a platform other than the official one provided by the device manufacturer, where users can download and install applications. In the context of iOS, this means an app store not managed by Apple. Allowing such marketplaces increases competition and can provide users with more choices and potentially lower costs, as it bypasses the traditional commission fees charged by Apple on in-app purchases.
- In-app purchase:
- In-app purchase is a feature that allows users to buy additional content or subscriptions within an app. Traditionally, Apple requires a commission on all in-app purchases made through its platform, which has been a point of contention for many developers and companies like Epic Games. The DMA seeks to regulate these practices, potentially reducing the fees charged by platform holders like Apple.