Justin Sullivan
Apple (NASDAQ:AAPL) is backing down from a contentious dispute over its app store payments model, reinstating the developer account of Epic Games amid heavy pushback in Europe.
Apple (AAPL) this week had moved to terminate Epic’s developer account, which it had planned to use to bring the Epic Games Store and hit game Fortnite to iOS devices in Europe.
That brought a rush of action from the European Commission, and EU Commissioner Thierry Breton said “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.”
Now, “Apple has told us and committed to the European Commission that they will reinstate our developer account,” Epic Games said. “This sends a strong signal to developers that the European Commission will act swiftly to enforce the Digital Markets Act and hold gatekeepers accountable. We are moving forward as planned to launch the Epic Games Store and bring Fortnite back to iOS in Europe. Onward!”
“The DMA went through its first major challenge with Apple banning Epic Games Sweden from competing with the App Store, and the DMA just had its first major victory,” Epic owner Tim Sweeney said on X, the platform formerly known as Twitter. “A big win for European rule of law, for the European Commission, and for the freedom of developers worldwide to speak up.”
“Following conversations with Epic, they have committed to follow the rules, including our DMA policies,” Apple said in a statement. “As a result, Epic Sweden AB has been permitted to re-sign the developer agreement and accepted into the Apple Developer Program.”
While Epic Games is majority owned by Sweeney, Tencent (OTCPK:TCEHY) holds a 40% stake, while Sony (SONY) holds a little over 5%. Walt Disney (DIS) has moved to invest $1.5B in Epic to build new Disney digital experiences.
Shortly after 2 p.m. Friday, Apple (AAPL) stock was up 2.3%, among top Technology gainers on the day.