Epic Games has taken a significant step in expanding its digital marketplace by launching its own app store in the European Union for iOS, a move that could reshape the mobile app landscape. This launch isn’t just confined to the EU; Epic’s app store is also now available globally on Android, marking a major milestone in the company’s ongoing efforts to create a more competitive ecosystem for app developers and users alike. For iOS users in the European Union, this means they can now download apps directly from Epic’s store on their iPhones and iPads, bypassing the 30% commission typically imposed by Apple’s App Store. This move could potentially save developers billions of dollars in fees. Globally, the Android expansion opens up new markets, particularly in regions where Android dominates, such as Asia and Africa, providing Epic with access to billions of mobile users.
The legal battles between Epic Games and Apple have been a landmark in the tech industry, involving billions of dollars and setting precedents for how app stores operate. The conflict began in August 2020, when Epic introduced a direct payment system in Fortnite, effectively bypassing Apple’s 30% commission on in-app purchases. Apple, which generated approximately $19 billion from the App Store in 2020 alone, swiftly removed Fortnite from the App Store, leading to a lawsuit from Epic. Epic’s argument was that Apple’s control over the iOS ecosystem constituted a monopoly, stifling competition and innovation.
The case culminated in a highly publicized trial in May 2021, where both companies presented their cases. In September 2021, the court ruled that while Apple was not a monopoly, its restrictions on developers were anti-competitive. The ruling forced Apple to allow developers to inform users of alternative payment methods outside of Apple’s ecosystem, a move that could potentially cost Apple billions in lost revenue. However, the court also ruled that Epic had breached its contract with Apple and ordered it to pay damages. Both companies appealed parts of the ruling, and the legal battle continues to influence the digital marketplace, with the European Union and other jurisdictions closely monitoring the outcome.
The launch of Epic’s app store on iOS in the European Union is a significant victory for the company and could have far-reaching implications for the entire gaming and tech industry. For Epic Games, which was valued at approximately $31.5 billion in April 2022, this move is part of its broader strategy to diversify its revenue streams and reduce its reliance on third-party platforms like Apple’s App Store. By bypassing Apple’s 30% commission, Epic could potentially increase its revenue significantly, particularly from popular titles like Fortnite, which generated over $5 billion in revenue in 2020 alone.
For other game companies, the launch of Epic’s app store on iOS could herald a new era of competition in the app distribution market. Companies that have traditionally been beholden to Apple’s strict App Store policies and high fees might now have a viable alternative, particularly in the European Union. This could lead to a reduction in the cost of publishing games on iOS, as developers might leverage Epic’s platform to negotiate better terms with Apple or switch entirely to Epic’s store. Moreover, the success of Epic’s app store could encourage other tech giants, like Google, to rethink their app store policies, potentially leading to a more open and competitive market for mobile apps globally.
Overall, the launch of Epic’s app store on iOS in the European Union is more than just a business expansion; it’s a strategic move that could redefine the dynamics of the app economy, benefiting developers, consumers, and possibly even other tech companies looking to challenge the status quo.
‘Fortnite’ maker Epic Games launches its app store on iOS in the EU, worldwide on Android