Tim Sweeney’s Tweets Spark Apple to Terminate Epic’s Developer Account

Tim Sweeney, CEO of Epic Games, found himself at the centre of a controversy from a tweet that led to the termination of Epic’s developer account by Apple. This move by Apple comes in the midst of ongoing legal battles and regulatory scrutiny over its App Store policies. How did Tim Sweeney’s tweets spark Apple’s decision to terminate Epic’s developer account? Let’s investigate further.

Tim Sweeney’s Criticism of Apple

Apple leadership faces some massive decisions in the coming weeks as the contradictions between their stated principles and the intended and actual consequences of their present policies are reckoned with: the app store monopoly, the digital goods payments monopoly, the tax, the… pic.twitter.com/mUxV5ypwcd

— Tim Sweeney (@TimSweeneyEpic) February 26, 2024

Tim Sweeney has been a vocal critic of Apple’s policies regarding its App Store and iOS ecosystem. Through the social media platform X (Formerly known as Twitter), Tim Sweeney has raised concerns about what he perceives as Apple’s anti-competitive behaviour and its control over the distribution of apps on its platform.

Apple’s Response

In response to Tim Sweeney’s criticisms, Apple took the drastic step of terminating Epic’s developer account. This move effectively blocks Epic from distributing its apps, including the popular game Fortnite, on Apple’s App Store. Apple cited Tim Sweeney’s public statements as a breach of Epic’s contractual commitments and expressed concerns about the company’s trustworthiness.

Legal Battle Between Epic Games and Apple

The legal saga between Epic Games and Apple commenced in August 2020, with Epic Games initiating a lawsuit against Apple in the United States District Court for the Northern District of California. Central to the lawsuit was Apple’s practices within the iOS App Store, particularly its stringent restrictions on alternative in-app purchasing methods and its massive changes to alternative app marketplaces in EU.

Apple has terminated our developer account and now we cannot develop the Epic Games Store for iOS.

This is a serious violation of the EU’s Digital Markets Act. We will continue to fight to get back on iOS!https://t.co/BmqFxG26ul

— Epic Games Newsroom (@EpicNewsroom) March 6, 2024

Epic Games, led by its founder Tim Sweeney, contested Apple’s imposition of a 30% revenue cut on App Store transactions, advocating for either bypassing Apple’s payment system or reducing the commission.

The conflict escalated when Epic Games deliberately implemented changes within its game Fortnite on August 13, 2020, aiming to circumvent Apple’s App Store payment system. In response, Apple swiftly removed Fortnite from the App Store, prompting Epic to file its lawsuit against Apple. 

Apple just terminated Epic's developer account, and they admitted that this tweet was one of the reasons.

We don't want to think about Apple being evil. It would be so inconvenient. We don't want to switch to Android. But I see ever more signs that power has corrupted them. https://t.co/KExDKWptlc

— Paul Graham (@paulg) March 6, 2024

Apple retaliated by filing a countersuit, alleging that Epic orchestrated the breach of its contractual terms to provoke a legal confrontation. The ensuing trial, spanning from May 3 to May 24, 2021, saw Judge Yvonne Gonzalez Rogers ruling predominantly in favour of Apple on nine out of ten counts.

While Apple emerged victorious on most fronts, Judge Rogers found against Apple’s anti-steering policies under the California Unfair Competition Law, prohibiting the tech giant from impeding developers from informing users about alternative payment systems within apps. Dissatisfied with the ruling, both Epic Games and Apple filed appeals to the Supreme Court in July 2023. 

Related: Apple’s New Core Technology Fee Receives Criticism From Microsoft, Epic Games and Spotify

@admani_explains Apple vs Epic: Did Apple lowkey win this case? #apple #epicgames #tech #businessnews ♬ Sneaky Snitch – Kevin MacLeod

However, Justice Kagan declined Epic’s emergency request for a stay of the ruling in August 2023. Ultimately, in January 2024, the Supreme Court denied full appeals from both parties, upholding Apple’s victory while mandating it to permit developers to include notices of alternate payment systems in apps.

The legal skirmish culminated in Apple’s termination of Epic Games Sweden’s developer account worldwide in March 2024, citing a pattern of untrustworthy behaviour on the part of the game developer. Epic lamented this action, asserting that the terminated account was intended to facilitate the launch of an Epic Games Store on iOS in the EU, potentially reinstating the Fortnite mobile app on iPhones. 

Epic contends that Apple’s termination of the Swedish developer account constitutes a serious violation of the Digital Markets Act, signalling its resistance to foster genuine competition on iOS devices.

Digital Markets Act (DMA) Impact

The Digital Markets Act (DMA) stands as a pivotal legislation within the European Union (EU), designed to foster fairness and openness in digital markets. Specifically targeting major digital platforms known as “Gatekeepers”, including online search engines, app stores, and messenger services, the DMA introduces a set of objective criteria to identify these influential entities. 

Through a series of obligations and prohibitions outlined in the DMA, gatekeepers are mandated to adhere to stringent regulatory standards, establishing a framework to govern their conduct within the digital landscape.

Implemented alongside existing EU competition rules, the DMA serves to regulate the behaviour of prominent “Big Tech” firms operating within the European Single Market and beyond. By addressing the dominant position often held by these companies in highly concentrated digital markets, the DMA aims to promote a fairer competitive environment, countering the prevalent “Winner takes all” dynamic. 

With potential sanctions for non-compliance, including fines of up to 10% of global turnover, the DMA took effect on November 1, 2022, with full applicability realised on May 2, 2023.

Also Read: MacPaw Announces Setapp Mobile Beta: Transforming the EU App Ecosystem

Epic’s Response

Tim Sweeney has vehemently protested Apple’s decision to terminate its developer account, accusing the tech giant of anti-competitive behaviour. The company argues that Apple’s actions violate the DMA and hinder competition on iOS devices. Despite Apple’s claims of breach of contract, Epic maintains that it has acted in good faith and is willing to comply with all terms of its agreements with Apple.

The Future of the App Store

The termination of Epic’s developer account underscores the ongoing debate surrounding Apple’s control over its App Store. Critics such as Tim Sweeney argue that Apple’s dominance stifles competition and innovation, while supporters maintain that it ensures a secure and consistent user experience. The outcome of the legal battle between Epic and Apple could have far-reaching implications for the future of app distribution on iOS devices such as the MacBook Air with the latest M3 Chip.