An epic battle is coming to the EU.
Epic Games, creator of the popular video game Fortnite, filed an official complaint with the European Commission against Apple on Wednesday, arguing that the U.S. tech giant violated EU antitrust rules with its App Store and payment policies. The charges are similar to those that Epic filed against Apple and Google in US lawsuits.
Epic argues that Apple “completely eliminated competition in application distribution and payment processes” with unfair terms and conditions. The game developer also claims that the iPhonemaker uses its control of its proprietary iOS operating system and its ecosystem “to benefit while blocking competitors,” according to a company statement.
Apple’s conduct “is an abuse of a dominant position and a violation of EU competition law,” said Epic.
The complaint is the latest episode in a series of legal actions against Apple that Epic launched in the U.S. last summer. Arguments in the Epic lawsuit in the EU, such as the illegality of mandatory use of Apple’s proprietary in-app purchase system, reflect other complaints against the Cupertino-based company for which the European Commission opened investigations in June.
Epic’s move follows a series of recent complaints against technology giants from industry start-ups like Slack and Telegram. He also highlights the concerns that Brussels is trying to address as part of its new rulebook to regulate Big Tech, known as the Digital Markets Act (DMA).
“What is at stake here is the very future of mobile platforms,” said Tim Sweeney, CEO of Epic Games. “Consumers have the right to install apps from sources of their choice and developers have the right to compete in a fair market.”
An Apple spokesman said, “Epic has enabled a feature in its application that has not been reviewed or approved by Apple, and did so with the express intention of violating the App Store guidelines that apply equally to all developers and protect the clients.”
“Their reckless behavior has turned customers into pawns and we hope to make that clear to the European Commission,” added the spokesman.
The Commission acknowledged receipt of the complaint and said it would “assess it based on standard procedures”.
The stalemate began after Epic introduced a direct payment system within Fortnite to bypass Apple and Google’s app stores, which were left with 30% of revenue from using their own payment processing systems. The two app store owners responded by blocking Fortnite players from installing and updating the game via Apple’s App Store and Google Play, arguing that Epic’s payment system did not meet its terms and conditions.
Epic took Apple and Google to court in the United States in August. He also sued Apple in Australia in November and the United Kingdom in January for the same issue.
The gaming company insisted it is not seeking damages. “Epic just wants a change in policy,” Sweeney told reporters on Tuesday, ahead of the announcement.
The EU digital rule book
“The DMA proposal includes clauses that would potentially address Epic’s claim,” the company’s antitrust attorney, Thomas Vinje, told reporters. But DMA is not enough and will not be ready quickly, he said.
The EU rulebook will require so-called guardians – companies that have power and control over entire platform ecosystems – to apply “fair, reasonable and non-discriminatory” fees to companies that sell in app stores. But “open[ing] competition in stores … is not enough, ”said Sweeney. “It is also essential to open payments.”
Since “it will take some time” for DMA to take effect, Vinje said, “now is the time to move forward” on the antitrust front. He recognized that the provisions in the DMA “indicate” that the Commission “understands that it is a very big problem”.
Brussels opened two formal investigations against Apple over App Store rules in June, focusing on streaming music and e-books. The Telegram messaging app also raised concerns about Apple’s revenue sharing rules with Brussels in a formal complaint in July.
Sweeney said he did not file a complaint against Google with the Commission, but did not rule out any in the future. “At the moment, we are focusing on Apple,” said the head of Epic, adding that he was still finding the best approach to these issues.
There are differences between Google and Apple, he continued, but the “underlying concern for both is uniform”.
Update: the article has been updated to include the Commission’s response.
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