The hostility of Epic Video games CEO in the direction of Apple continues, with Tim Sweeney calling the corporate a “gangster-style” enterprise that features income from an “unlawful follow.”
The excruciatingly long legal battles between Epic Video games and Apple over In-App Buying and the App Store prompted a number of outcry over how Apple conducts enterprise with builders. Epic Video games ultimately lost the battle, however an injunction meant that Apple was compelled into enabling exterior buy mechanisms for iOS apps.
After Epic filed a courtroom order in March 2024 and complained to the courtroom once more a year later, Tim Sweeney determined to criticize Apple’s practices as soon as extra. As was reported by TechCrunch, Sweeney spoke at an occasion on Wednesday, the place he largely echoed the language from Epic Video games’ March 2025 criticism.
“The unhappy fact is that Apple and Google are not good-faith, law-abiding corporations,” mentioned the Epic Video games CEO. “They’re run, in some ways, as gangster-style companies that may do something they suppose they’ll get away with. In the event that they suppose that the wonderful goes to be cheaper than the misplaced income from an unlawful follow, they all the time proceed the unlawful follow and pay the wonderful.”
Apple and Epic Video games have a troubled historical past, with the latter suing the previous over in-app purchases. Epic Video games wished Apple to permit purchases from exterior web sites on iPhone and believed that the Epic Video games Retailer ought to be out there to iOS customers.
Whereas the latter solely became a reality within the European Union, thanks to the area’s Digital Markets Act, Apple was compelled to permit the purchases of in-game gadgets by way of exterior web sites within the U.S.
Epic Video games on exterior purchases and Apple’s “scare screens”
iPhone customers in the US should buy in-game gadgets from exterior web sites, which is the results of an anti-steering injunction. Epic Video games has usually mentioned that Apple did the naked minimal to adjust to this authorized requirement. In its March 2025 criticism, Epic mentioned that Apple’s “Exterior Hyperlink Buy Entitlement Program” was a system that was “purposely designed to fail.”
As a part of Apple’s restrictions, builders cannot interrupt this buy move to supply exterior choices.
Apple reportedly thought-about methods of “severely limiting the location, language, and design of steering choices” to cut back the variety of folks utilizing them. “Finally, Apple selected the worst of all worlds for customers and builders,” Epic lamented of their criticism. “Apple knowingly doubled down on the chance of violating the injunction to supply most safety to Apple’s income.”
In accordance with Epic Video games, Apple prevents builders from utilizing “calls to motion” and restricts the location and messaging of buttons that hyperlink to exterior web sites. Moreover, Epic mentioned that Apple’s UX groups designed “full-screen, interstitial warning pages,” that are used when customers faucet an exterior hyperlink.
In its March 2025 complaint, Epic referred to as these warning pages “scare screens.” Tim Sweeney echoed this sentiment by utilizing the identical time period throughout his most up-to-date statements on Wednesday. Epic Video games’ CEO claimed that corporations are “getting away with” what he calls “textbook self-preferencing,” every time these so-called scare screens are used.
“Crime pays for giant tech corporations,” mentioned Sweeney. “Clearly, we should not count on that to vary till enforcement turns into a lot, way more vigorous,” he added. Epic’s CEO additionally famous that the identical factor utilized to the Epic Video games Retailer in Europe, the place he believes 50 to 60 p.c of customers are pushed away due to Apple’s warning screens.
Epic’s downside with Apple’s third-party app retailer charges
One other level of competition has to do with the charges Apple imposes on exterior purchases. Whereas odd App Retailer purchases are topic to a 30% price that goes straight to Apple, purchases made by way of third-party app marketplaces are charged much less. Even so, this nonetheless presents an issue for Epic Video games.
The Epic Video games Retailer is an App Retailer different out there within the EU. Picture Credit score: Epic Video games
In accordance with Sweeney, Apple’s charges are the rationale why no main recreation developer has determined to distribute apps by way of the Epic Video games Retailer within the EU. Builders have apparently largely declined to take part, as they must pay a yearly “Core Know-how Payment” of fifty cents per set up. This price would apply to all apps exceeding a million downloads.
“Until your app is enormously high-grossing per consumer, any free-to-play recreation is basically dissuaded from that,” claims the Epic Video games CEO. “It is too costly for them. Apple would bankrupt them in the event that they did that.”
The fee on exterior purchases is just too excessive for Epic
Epic Video games can also be displeased with Apple’s charges on game-related purchases performed by way of exterior web sites. Epic argued that, regardless of Apple taking a 3% price discount on the price to 27%, because of exterior suppliers dealing with transaction charges and different prices, it might in the end value builders greater than utilizing a normal IAP for a transaction.
Tim Sweeney has repeatedly criticized Apple’s price insurance policies.
Apple’s determination to impose a price on exterior purchases was reached by way of a committee which included CEO Tim Cook, Apple’s then-CFO Luca Maestri, and govt Phil Schiller. The latter of the three later revealed he was towards the price on exterior purchases, indicating that Cook dinner and Maestri overruled his issues.
On Wednesday, Epic Video games’ Tim Sweeney reiterated his firm’s issues over Apple’s coverage and its Exterior Hyperlink Buy Entitlement Program.
Beforehand, whereas discussing a program in the Netherlands that allowed relationship apps to make use of different cost processes, together with the same program in South Korea, Epic mentioned that neither program achieved success.
In accordance with Epic, after ten months of availability within the Netherlands and 4 months in Korea for its applications, just one developer had truly signed up for it. With the related charges, it might have been too cost-prohibitive for giant builders to tackle, claimed Epic.
Epic Video games has publishing and distribution charges of its personal
Whereas Epic Video games has been undeniably vocal in its criticism of Apple’s supposedly excessive App Retailer charges, the corporate has its personal charges for builders who want to publish and distribute titles by way of the Epic Video games Retailer.
Epic Video games has an 88/12 income cut up throughout most of its platforms. Picture Supply: Fab.com
In accordance with the Epic Video games web site, builders might want to pay a $100 submission price for each recreation they want to distribute on the Epic Video games Retailer. The corporate costs a 12% price on all consumer purchases, which means that builders get to maintain 88% of their recreation’s income, based on the Epic Video games Retailer website.
Builders whose video games use Unreal Engine, one other product developed by Epic Video games, are charged no royalties on purchases performed by way of the Epic Video games Retailer. If an app based mostly on Unreal Engine makes greater than $1m in income, then Epic Video games costs a 5% royalty.
The engine itself is free to make use of for educators and colleges, whereas recreation builders and small companies will not should pay something till they’ve crossed the $1m income threshold. The Unreal Engine website lists the entire pricing and licensing particulars.
For these trying to promote digital property, Epic has a distribution platform referred to as Fab, previously often called the Unreal Engine Market. Although Epic Video games used to take a 30% minimize in 2017, the Fab website signifies that Epic now solely costs a 12% price. This implies there is a 12/88 cut up, as is the case with the Epic Video games Retailer.
It seems as if Epic Video games has considerably lowered its varied charges lately, one thing which was maybe influenced by Apple’s long-standing 30% price insurance policies. Finally, this means that Epic will probably stay simply as vocal because it has been about Apple’s place, as the corporate can all the time say its charges are considerably decrease.
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