Epic Games is escalating its battle against Apple's App Store policies in Europe, launching a mobile game store with a free games program and a commitment to cover developers' iOS fees. This move aims to challenge Apple's dominance and push for greater competition in the mobile gaming market, leveraging the European Union's Digital Markets Act (DMA).
A Cross-Platform Vision: The Epic Games Mobile Store
Epic's ambition extends beyond simply creating another app store. The company envisions a unified, cross-platform ecosystem where players can purchase games and digital items once and access them across various devices. This vision aligns with the increasing prevalence of multi-platform gaming, offering a more seamless and user-friendly experience.
The launch of the Epic Games mobile store will initially feature nearly 20 third-party games, available worldwide on Android and within the European Union on iOS. The store will also introduce a free games program, starting with popular titles like Bloons TD 6 and Dungeon of the Endless: Apogee. This program will offer new free games each month, eventually transitioning to a weekly schedule, providing a consistent stream of content for users.
Addressing the iOS Hurdle: Covering the Core Technology Fee
A significant obstacle for developers looking to distribute their games outside the Apple App Store is the Core Technology Fee (CTF). This fee, levied on every install of an iOS app using third-party stores after exceeding 1 million annual downloads, poses a substantial financial burden, particularly for smaller developers.
Epic has been a vocal critic of the CTF, arguing that it creates a significant barrier to entry for competing app stores. The company asserts that even if a developer lists just one game on the Epic Games Store, they are liable for the fee for every download of their games on iPhones and iPads, regardless of the store from which they are downloaded.
To mitigate this hurdle and incentivize developers to participate in its free games program on iOS, Epic has pledged to cover the CTF for participating developers for one year. This financial support aims to alleviate the burden imposed by Apple's fee and encourage developers to explore alternative distribution channels.
A Challenge to Apple's Compliance with the DMA
Epic views Apple's CTF as a violation of the DMA, which is designed to promote competition in digital markets. The company argues that the fee hinders the growth of competing app stores and limits consumer choice. By covering the CTF for developers, Epic hopes to demonstrate the detrimental impact of the fee and prompt action from the European Commission.
Epic acknowledges that covering the CTF is not a sustainable long-term solution for every third-party app store or even for Epic itself. However, the company believes it is necessary to take this step while the European Commission investigates Apple's compliance with the DMA.
The Ongoing Battle with Mobile Operating System Gatekeepers
This latest move is part of Epic's ongoing struggle against the dominant mobile operating system developers, Apple and Google. The company has previously challenged both companies' practices in the US, with varying degrees of success. Now, Epic is focusing its efforts on the European Union, hoping that the region's regulatory framework will provide a more favorable environment for competition.
Epic contends that many mobile game developers are hesitant to join its store due to restrictions and fees imposed by Apple and Google. The company has cited anonymous game developers, whose identities were withheld to protect them from potential retaliation, who specifically pointed to the CTF as a deterrent.
Apple's Defense and Google's Open Approach
Apple defends the CTF, arguing that it "reflects the value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users."
Google, on the other hand, emphasizes its more open approach to app distribution. A Google spokesperson stated that "On Android, developers have always been free to offer their apps on multiple app stores, directly from the web, or even through their own store."
The Importance of Robust DMA Enforcement
Despite launching its mobile store, Epic has experienced slower growth than initially anticipated. By the end of 2024, the store had only reached 29 million installs, significantly lower than the projected 100 million. Epic attributes this shortfall partly to friction points such as mobile "scare screens," which discourage users from installing the Epic Games Store.
Epic believes that stronger enforcement of the DMA is crucial for achieving true app store freedom, user choice, and competition in the market. The company argues that without robust enforcement, even the European market will not experience the full benefits of a competitive digital landscape.
A Long-Term Commitment to Change
Epic's fight against Apple and Google is not a recent development. The company's high-profile lawsuit against Apple in 2020 marked a significant turning point in the debate over app store practices. Epic CEO Tim Sweeney has indicated that the company is prepared for this battle to continue for several years.
Despite the complexities of the situation and the changing political landscape, Epic remains optimistic that its efforts will eventually lead to meaningful change. The company believes that the current situation, where it can fully compete with the App Store only in Europe while being blocked in its home country of the United States, is untenable.
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