Apple’s Termination of Epic Games’ Developer Account is Now Under EU Scrutiny

After the EU’s Digital Markets Act (DMA) forced Apple to allow alternative app stores on iOS in the EU this week, EU regulators will now be looking into Apple’s recent decision to shut down Epic Games’ developer account. Epic had already announced that it was planning to bring its Epic Games Store to iOS in 2024, but the company is now unable to do so after losing its developer account this week.

A spokesperson for the EU Commission said that the regulator has asked Apple to explain why the company was now preventing Epic Games from launching its alternative app store on iOS in the EU. Apple could be facing financial penalties that could reach up to 10% of the company’s total annual revenue if it’s found to be violating the new EU rules.

“We have requested further explanations on this from Apple under the DMA (Digital Markets Act),” a European Commission spokesperson said in an email shared with Reuters. “We are also evaluating whether Apple’s actions raise doubts on their compliance with the DSA (Digital Services Act) and the P2B (Platform to Business Regulation), given the links between the developer programme membership and the App store as designated VLOP (very large online platform).”

Today, an Apple spokesperson justified the company’s decision to terminate Epic’s developer account for a second time. According to the company, previous court rulings concluded that Apple had the right to terminate the account of a company that didn’t respect its App Store policies. Moreover, Apple also pointed out the ongoing criticism of its developer policies from Epic Games CEO Tim Sweeney.

“Epic’s egregious breach of its contractual obligations to Apple led courts to determine that Apple has the right to terminate ‘any or all of Epic Games’ wholly owned subsidiaries, affiliates, and/or other entities under Epic Games’ control at any time and at Apple’s sole discretion’,” the Apple spokesperson said. “In light of Epic’s past and ongoing behavior, Apple chose to exercise that right.”

By preventing Epic Games from launching its Epic Games Store on iOS, Apple is effectively blocking what could be a serious challenger to its App Store monopoly in the EU. And it’s not a good look for Apple after the EU Commision just fined the company €1.8 billion for abusing its dominant position regarding the distribution of music streaming services on iOS.