“Negativity is the river that flows through Cupertino!” said Epic Games CEO Tim Sweeney. He is a notorious Apple critic and has sued the tech giant for anti-competitive practices. In the post of X, takes seriously today's news that the European Commission has imposed a historic €1.84 billion fine on the iPhone maker. The EC ruling in favor of Spotify hinges on Apple's approach to anti-steering provisions that prevented Spotify and other music streamers from directing users to their websites.
Referring to Apple's response to the EC's fine, Sweeney said the company would appeal, saying, “Apple's bitter complaints clearly reflect its historic pre-monopoly relationship with app makers. provides a good API and the app offers great features that are attractive to users. Everyone benefits together. ”
In other words, Apple's App Store was originally designed to help the tech giant sell more iPhones because it's good for consumers to have easy access to popular apps like Facebook, an early partner of Apple's App Store. It was seen as a useful platform. But over the years, as Apple grew its services business, app developers were encouraged to use in-app purchases to monetize their apps by selling virtual goods and subscriptions. As a result, Apple's interest in retaining some of those revenues grew. It has made some concessions to small and medium-sized developers, but says there is no App Store model without a fee structure.
Apple introduced exceptions to the rules for “reader” apps such as music streamers in 2022, but the process is now much easier by stipulating who can apply for an exception, when it's granted, how links can be displayed, and how links can be displayed. still control most of the advertised within the app, etc.
Rejection is the river that flows through Cupertino! Apple's bitter dissatisfaction clearly reflects the company's historic relationship with app makers, which predated its monopoly. The device provides a good API and the app provides good functionality that attracts the user. Everyone benefits together. https://t.co/qkzS4N5z9N
— Tim Sweeney (@TimSweeneyEpic) March 4, 2024
Sweeney was no doubt excited about the EU's decision, given that his company had been battling tech giants over similar issues.
Epic Games has long wanted a way to distribute its popular game Fortnite to iOS users without going through the App Store or paying fees to Apple for in-app purchases. The game maker has sued both Apple and Google over antitrust issues over how its app stores are run. Although the company won its battle against Google, which was tried by a jury, it largely lost its case against Apple because the Supreme Court refused to consider a lower court's ruling that Apple was not a monopoly.
But a district court judge in Northern California has ruled that app developers should show users a link or button that connects to their website so customers can learn other information. As a result, Epic Games won a single case in its legal battle with Apple. Payment methods other than Apple's in-app purchases.
Apple said it would allow such links as requested by the court, but decided to still take a 27% commission on those sales. Epic called the move a “malicious compliance” incident, and Sweeney vowed to fight.
Apple's finding of EU misconduct. In the United States, the issue is before the district court in Epic v. Apple, where Epic is challenging Apple's bad faith compliance with the court's anti-steering injunction. https://t.co/bSshoFOuFi
— Tim Sweeney (@TimSweeneyEpic) March 4, 2024
He suggested today that the EC's decision is relevant to his case in the US because it describes “illegal conduct by Apple.”
“In the United States, this issue is before the District Court in Epic v. Apple, where Epic is challenging Apple's bad faith compliance with the court's anti-steering injunction.” Sweeney wrote.
He also points out that the $2 billion fine is actually an $80 billion problem, as investor reaction to the EU decision caused Apple shares to drop as much as 3% in the first hours of trading. – Retweeted Kafka's Business Insider article. The market capitalization is equivalent to approximately $80 billion.
Spotify also pushed back against today's fine, saying it sent a “powerful message”, but warned that Apple has a history of circumventing regulations in order to hold it accountable. Sweeney also retweeted a video message from Spotify CEO Daniel Ek about the fine and concerns that Apple would find a way to avoid full compliance.