Apple’s Retreat Amid European Pushback
Apple (NASDAQ:AAPL) is seen reversing course in a heated controversy regarding its app store payment structure, as it reinstates the developer account belonging to Epic Games, in light of strong opposition within Europe.
European Commission Intervention
This decision by Apple comes after the tech giant had initiated steps to suspend Epic’s developer account, a move that would have facilitated the introduction of the Epic Games Store and the popular game Fortnite to iOS devices across Europe.
Notably, the European Commission swiftly reacted to this development, with EU Commissioner Thierry Breton emphasizing, “Under the DMA, there is no room for threats by gatekeepers to silence developers. I have asked our services to look into Apple’s termination of Epic’s developer account as a matter of priority.”
Epic Games’ Response and Apple’s Statement
Epic Games, in a recent update, stated, “Apple has informed us and assured the European Commission that they will be reinstating our developer account. This serves as a strong message to developers that the European Commission is committed to enforcing the Digital Markets Act and holding gatekeepers accountable. We are proceeding as planned to launch the Epic Games Store and restore Fortnite on iOS in Europe. Onward!”
Apple, in an official statement, mentioned, “Following discussions with Epic, they have pledged to adhere to the regulations, including our DMA policies. Consequently, Epic Sweden AB has been allowed to re-enter the developer agreement and join the Apple Developer Program.”
Industry Landscape and Market Response
It’s worth noting that while Tim Sweeney holds a majority stake in Epic Games, Tencent (OTCPK:TCEHY) owns a 40% interest, with Sony (SONY) holding slightly over 5%. Furthermore, Walt Disney (DIS) has revealed intentions to inject $1.5 billion into Epic for the development of new digital experiences.
Shortly after 2 p.m. on Friday, Apple’s stock (AAPL) recorded an increase of 2.3%, positioning it as one of the leading gainers in the Technology sector for the day.
