Epic Games announced on Wednesday that it has filed an antitrust complaint against Apple with the European Commission, which is the executive arm of the European Union.
In a complaint lodged with the competition committee’s chief executive, developer Fortnite said Apple’s 30% cut in App Store purchases is anti-competitive.
Epic said Apple “has not only harmed, but completely eliminated competition in application distribution and payment processes”, adding that “it uses its control of the iOS ecosystem to benefit while blocking competitors”.
The European Commission has told CNBC that it has received the complaint and that it will assess it based on its standard procedures.
Epic launched its own in-app payment system last summer to try to avoid paying the 30% commission that Apple receives from in-app revenues. In response, Apple removed Fortnite from its App Store and revoked Epic’s developer license.
“Epic has enabled a feature in its application that has not been reviewed or approved by Apple, and has done so with the express intention of violating the App Store guidelines that apply equally to all developers and protect customers,” said Apple in a statement shared with CNBC. “His reckless behavior has turned customers into pawns and we hope to make that clear to the European Commission.”
Apple also said that its App Store helped developers turn their ideas into apps, adding that Epic has been one of the most successful developers on the App Store and has become a multi-billion dollar business that reaches millions of iOS customers.
Epic also filed complaints with competition regulators in the United States and Australia, and took Apple to the UK Competition Court.
The two companies are expected to fight in a U.S. court in May and Apple CEO Tim Cook was ordered to appear for a seven-hour deposition.
“What is at stake here is the future of mobile platforms,” Epic Games founder and CEO Tim Sweeney said in a statement. “Consumers have the right to install apps from sources of their choice and developers have the right to compete in a fair market. We will not sit idly by and allow Apple to use its platform domain to control what should be a level playing field. “
Sweeney added: “It’s bad for consumers, who are paying inflated prices due to the complete lack of competition between stores and in-app payment processing. And it’s bad for developers, whose livelihoods often depend on the company’s complete discretion. Apple as to who to allow on the iOS platform and on what terms. “
Epic is not the only company that has complained about Apple’s App Store. Music streaming giant Spotify has filed a complaint alleging that Apple unfairly squeezes its revenues, while Rakuten Kobo’s subsidiary and the Telegram messaging app also complained about the cut that Apple receives in ebook sales.
The European Commission launched an investigation last year to see if Apple is violating competition laws by making application developers use its payment system within the application.
Apple had a victory in the United States on Tuesday, when North Dakota voted against a bill that would regulate app stores.
The North Dakota state senate voted 36-11 not to pass a bill that would require app stores to allow software developers to use their own payment processing software and avoid fees charged by Apple and Google.