EU looking into Apple’s decision to kill Epic Games’ developer account
The European Union has initiated an investigation into Apple's decision to close Epic Games' developer account, citing three separate regulations that may apply to the situation.
Digital Markets Act (DMA): Epic Games accused Apple of breaching the EU's DMA by terminating its developer account, as Epic had planned to launch its own app store, the Epic Games Store, on iOS in Europe. The DMA applies to Apple as a designated "gatekeeper" and its App Store as a "core platform service." This regulation requires Apple to permit third-party app stores, and failure to comply could result in significant penalties, up to 10% of global annual turnover (or 20% for repeat offenders).
Digital Services Act (DSA): The EU is evaluating whether Apple's actions raise compliance concerns with regard to the DSA. The DSA regulates digital services and platforms and aims to create a safer and more transparent digital environment for users.
Platform-to-Business Regulation (P2B): The EU is also assessing whether Apple's actions raise doubts about compliance with the P2B regulation. This regulation focuses on the relationships between platforms and businesses, ensuring fairness and transparency in their interactions.
The EU's response to Apple's decision includes requesting further explanations from Apple under the DMA. Apple will need to provide clarifications on its actions regarding Epic Games' developer account closure, especially in light of the regulations mentioned above. The DMA, which applies to Apple as a designated gatekeeper and its App Store as a core platform service, imposes significant penalties for non-compliance, underscoring the seriousness of the investigation.
The European Union has implemented regulations such as the Digital Services Act (DSA) and the Platform-to-Business Regulation (P2B) to regulate digital platforms like Apple's App Store, which is considered a Very Large Online Platform (VLOP). These regulations aim to promote transparency, fairness, and curb unfair practices in the digital ecosystem.
Under the DSA, which has been in force since August 2023 for larger platforms, breaches can result in penalties of up to 6% of the platform's global annual turnover. The P2B regulation, in force since 2020, aims to enhance platform transparency and prevent unfair practices. Enforcement of the P2B regulation falls under the jurisdiction of Member State authorities, who determine penalties for breaches.
Epic Games has accused Apple of terminating its developer account in retaliation for criticizing Apple's Digital Markets Act (DMA) proposal. Apple, in response, cited a US court ruling as justification for terminating Epic's account, stating that Epic's breach of contractual obligations led to the termination. However, the US court ruling may not hold legal standing in the EU.
Apple's termination of Epic's account is not limited to the EU, as its Developer Program License Agreements are global agreements. Apple claims that Epic's breach of the agreement, particularly through the deployment of a "hotfix" patch to circumvent Apple's rules, was implemented worldwide, including in Europe.
The legal battle between Apple and Epic Games continues in various jurisdictions, including the US and Australia.
It's important to note that this situation highlights the complex legal landscape surrounding digital platforms and regulations, with different jurisdictions and regulations coming into play.
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