The European Union is investigating Apple’s decision to close Epic Games’ developer account, citing three regulations that may apply.
Epic had planned to launch its own app store, the Epic Games Stores, on iOS in Europe, as well as relaunching Fortnite on Apple’s platform, but Apple terminated the account, accusing it of breaching the bloc’s Digital Markets Act (DMA).
In response, the European Commission has requested further explanations from Apple under the DMA, which applies to Apple as a designated “gatekeeper” and its App Store as a “core platform service.”
The EU is also evaluating Apple’s actions under the Digital Services Act (DSA) and the Platform-to-Business Regulation (P2B), given the connections between the developer program membership and the App Store as a very large online platform.
Penalties for non-compliance with the DMA can be up to 10% of global annual turnover, while breaches of the DSA can result in penalties of up to 6% of global annual turnover.
The P2B regulation aims to enhance platform transparency and prevent unfair practices.
Apple’s termination of Epic’s developer account has been linked to Epic’s criticism of Apple’s DMA proposal, but Apple claims it was justified based on a US court ruling.
While the US court did not find Apple to hold a monopoly in digital mobile gaming transactions, the EU’s DMA requires Apple to permit third-party app stores and software downloads.
Apple’s response to the Commission’s request for explanations reiterated its stance based on the US court ruling regarding termination of Epic’s account, which is not limited to the EU but applies globally.
Apple stated that Epic’s breach of the Developer Program License Agreement was implemented worldwide, including in Europe, and the court injunction allowing termination is applicable globally.
Epic continues to litigate against Apple in the US and Australia.
