Epic Games announced on Wednesday that it has filed an antitrust suit against Apple with the European Commission, the executive arm of the European Union.
In a complaint filed with the committee’s Directorate-General for Competition, the Fortnite developer said the 30% discount Apple makes on App Store purchases is anti-competitive.
Epic said Apple has “not only hurt but completely eliminated competition in app distribution and payment processes,” adding that it “is using its control over the iOS ecosystem to take advantage of itself while blocking competitors.”
The European Commission told CNBC that it had received the complaint and will review it based on its standard procedures.
Epic launched its own in-app payment system last summer to try to avoid paying Apple the 30% commission that Apple receives from in-app revenue. In response, Apple pulled Fortnite from the App Store and revoked Epic’s developer license.
“Epic has enabled a feature in the app that was not reviewed or approved by Apple, and they did so with the express intention of violating the App Store guidelines that apply equally to each developer and protect customers,” said Apple in a statement shared with CNBC. “Their reckless behavior has turned customers into pawns, and we look forward to making this clear to the European Commission.”
Apple also claimed that the App Store has helped developers turn their ideas into apps, adding that Epic has been one of the most successful developers in the App Store and has grown into a multi-billion dollar company reaching millions of iOS customers.
Epic has also filed complaints with competition regulators in the US and Australia and sued Apple to the UK Competition Tribunal.
The two companies will face a US court in May and Apple CEO Tim Cook has been sentenced to a seven-hour statement.
“What’s 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 stand by and allow Apple to use its platform dominance to determine what a level digital playing field should be. to be. “
Sweeney added, “It’s bad for consumers, who pay high prices because of the complete lack of in-store competition and in-app payment processing. And it’s bad for developers, whose livelihoods often depend on Apple’s complete discretion as to who they allow on. the iOS platform, and under what conditions. “
Epic isn’t the only company to complain about Apple’s App Store. Music streaming giant Spotify filed a complaint claiming Apple is unfairly squeezing its revenues, while Rakuten’s Kobo subsidiary and messaging app Telegram have also complained about Apple’s discount on ebook sales.
The European Commission launched an investigation last year into whether Apple violates competition law by allowing app developers to use their in-app payment system.
Apple had a victory in the US on Tuesday when North Dakota voted a bill that would regulate app stores.
The North Dakota State Senate voted 36-11 not to pass a bill that would have mandated app stores to allow software developers to use their own payment processing software and avoid fees charged by Apple and Google.