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Apple prevents Epic Games from introducing a new app store for iPhones in the EU, intensifying conflict
Apple's rejection of Epic's proposal might lead to an examination of its adherence to the DMA. This situation comes after Apple's recent changes to its app distribution rules in response to suggestions, with the goal of meeting the DMA's demands.
Apple has prohibited Epic Games from obtaining a developer account needed to introduce a new app store on iPhones in Europe. Epic Games' CEO, Tim Sweeney, perceives this move as a backlash for the company's antitrust activities, legal dispute with Apple, and criticisms of Apple's App Store rules, according to CNBC.
The root of the dispute dates back to 2020 when Epic took issue with Apple's 30% commission fees, leading to a lawsuit filed by Epic and subsequent policy changes made by Apple. In the midst of this contention, Apple justified its decision to deny Epic's request for a developer account, citing Epic's previous contract breaches and ongoing legal battles.
This confrontation takes place in the context of the European Union's Digital Markets Act (DMA), a fresh antitrust legislation intended to foster competition by permitting third-party app stores. Sweeney denounced Apple's denial of a developer account for Epic, viewing it as a call for allegiance and suppression of public criticism.
Apple's rejection of the application, the first recorded case of its kind, might lead to an examination of its adherence to the DMA. This event comes after Apple's recent changes to its app distribution rules in response to comments, with the goal of meeting the DMA's stipulations.
The disagreement arises as Margrethe Vestager, the head of EU competition, highlights the DMA's concentration on app stores, giving priority to equitable access for minor app stores to operating systems.
Epic's confrontation with Apple happens at the same time as worries over lukewarm interest for iPhones in China, with Apple experiencing a 12% decrease in stocks this year. Regulatory and competitor initiatives to create competing markets on Apple's devices pose a serious risk to its earnings and dominance over its own platform.
Legislators in Europe are implementing rules on third-party marketplaces on Apple devices via the DMA. Furthermore, Apple was recently levied with a fine of €1.84 billion by antitrust authorities in Brussels for hampering competition from competitors in music streaming through App Store restrictions. This is the first instance of Apple being penalized for infringing EU regulations.
On Wednesday, Apple thwarted Epic's attempt to exploit the DMA, referencing previous contract violations in their continuing legal battle.
(Incorporating information from various sources)
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