Apple Under EU Scrutiny Over Its Decision To Ban Epic Games' Developer Account

Apple Inc. AAPL is set to be questioned by European Union regulators over terminating Epic Games' developer account and preventing it from launching its own app store for iPhone users in Europe.

What Happened: Epic Games announced that Apple terminated its developer account on Wednesday, effectively blocking the gaming company from introducing Fortnite and the Epic Games Store to Apple’s iOS devices in the EU.

Epic Games CEO Tim Sweeney has accused Apple of violating the EU’s new Digital Markets Act rules, which come into full effect on Thursday.

This incident heightens the possibility of another legal clash between Apple and Brussels regulators, potentially leading to hefty penalties. This comes just days after Apple was slapped with a $1.95 billion EU fine for excluding music-streaming competitors.

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An EU commission spokesperson confirmed that they have requested additional explanations from Apple regarding its conduct with Epic’s game developer account under the bloc’s DMA, reported Bloomberg.

The new regulation will compel companies like Alphabet Inc.'s Google, Apple, Amazon.com Inc., and Meta Platforms Inc. to adhere to a strict list of do's and don'ts or face significant penalties.

Apple’s conduct is also being examined for potential violations of other digital rules concerning transparency with business users.

Epic’s developer account had previously been banned by Apple in the U.S. and other regions since 2020 following a dispute over bypassing Apple’s payment system for in-app upgrades.

Why It Matters: This incident is the latest in a series of controversies involving Apple’s App Store policies. In January, Apple faced backlash for levying a 27% fee on all sales originating from links clicked in apps.

The ongoing feud between Apple and Epic Games over app store fees escalated when Apple terminated Epic Games’ developer account.

The move was criticized by Y Combinator co-founder Paul Graham, who said power has "corrupted" Apple.

Price Action: Apple closed at $168.45, down 0.98% on Wednesday, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo by James Yarema on Unsplash