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by andersa 830 days ago
Epic doesn't care whether Apple shows "grace", or needs them to, they are going in by force with the backing of the EU legislation. It might just take a year or two longer to get through the courts. They can hold out that long without any problems, preparing their store in the background.
5 comments

Yeah, its really weird to appeal to the noble intentions of a corporation.

They're both just engaged in business.

I can believe that Apple is acting incredibly badly in this case without needing to fluff up Epic Games at all.

Apple and Samsung could sue each other and do business with each other because the stakes were lower and they were more codependent.

That's just the opposite kind of naive. Companies are still for the most part run by CEOs, and many of those CEOs have tremendous egos and most of them have a tremendous ability to direct the actions of those companies. Look at Tesla and Twitter lawsuits- they're clearly in Musks's interests.

Companies aren't minds of their own directing their own actions. Tim cook or some other high level executive is deciding these actions. Stop abrogating the direction of the literal directors

Twitter is a private company and Apple has a board of directors very interested in not rocking the boat
A board can only really exert soft pressure. Their options are very limited outside trying to fully replace a CEO unless they have something to use as a stick. Apple in particular prints money unlike any other company on earth and its board is not going to stop Tim Cook from doing pretty much whatever he feels like.
> Yeah, its really weird to appeal to the noble intentions of a corporation. They're both just engaged in business.

This is what's wrong with the current overly capitalist system. Companies are totally allowed to have no conscience, and externalise whatever they please to consumers and the environment. And you could even argue they are 'forced' to do so by due diligence legislation.

If we let this continue there will be no world left to fix. We have to change the game. I'm not saying we should go full communism. Capitalism isn't bad but there needs to be a balance between business and society with actual accountability (rather than the current 'green' initiatives basically just being PR without any kind of enforcement). It can't be all about money.

I think for US culture it's hard to imagine doing this but here in Europe society has always had this balance, at least in most countries. Initiatives like RoHS, GDPR, DSA/DMA are often called anticompetitive but we are actually trying to improve things for the benefit of society, not just the shareholders.

It's entirely a matter of incentives. Companies are like machines whose sole purpose is to make a profit. Pretty much everything they do apart from that (make products, employ people, pollute, etc) is, strictly speaking, a side effect.

If they could make just as much money (or more) without doing any of those other things, they absolutely would, and any company that wouldn't do the same would eventually be put out of business via competition, barring some kind of external intervention, say from the state.

If you want companies to grow a conscience, you're first going to have to figure out how to change their incentives, which means changing the environment in which they operate.

> It's entirely a matter of incentives. Companies are like machines whose sole purpose is to make a profit. Pretty much everything they do apart from that (make products, employ people, pollute, etc) is, strictly speaking, a side effect.

What do you base that on? Sure corporations take on a life of their own, but there's much more to most of them than purely making profits. They're made up of humans too, and usually it's some executive making a final call. There are many corporate agendas that have little to do with profit.

The meme that corporations are purely about profit needs to die, because it encourages that exact behavior by giving free reign to morally devoid executives, IMHO. Corporations can and should also be held to account legally and ethically for being good stewards of public interests in addition to profitability. In the end they're just tools for organization, and a rather effective one, but they're still run and accountable to humans and human values.

> What do you base that on? Sure corporations take on a life of their own, but there's much more to most of them than purely making profits.

Do corporations do other things besides make profits? Yes; I previously said as much. The point is about why they do the things they do.

> There are many corporate agendas that have little to do with profit.

Perhaps in the short term, if they can afford to economically, but isn't this kind of like the exception that proves the existence of the rule?

Is Tesla a car company that wants to make great cars and help reduce carbon emissions for the benefit of all? Maybe, but their primary goal must be profits, because they can't do any of the other stuff if they aren't profitable.

> The meme that corporations are purely about profit needs to die, because it encourages that exact behavior by giving free reign to morally devoid executives, IMHO.

I disagree that it encourages that behavior. If you want to change that behavior then an accurate understanding of the current state of affairs is a necessary prerequisite.

Like if you're going to say, "I want <insert company here> to do less of X and more of Y", then surely your first order of business must be to understand why they are doing X in the first place and not so much of Y (hint: it's usually because of profits).

In the case of corporations, because being profitable is necessarily the first priority, it follows that the most effective way to change the behavior of a corporation is pretty much anything that affects their profit, as opposed to appealing to the moral/ethical/whatever values of their leadership. If you want ethical corporate leadership, then you have to make it unprofitable to be unethical.

people don't act out of conscience because there's a particular incentive for them to do so. They act out of conscience, because there's a disincentive, naturally, in doing something wrong as an individual, or as anyone with any amount of accountability at all. But as long as entities shield or provide a mechanism of free absolution to those responsible for harming others and the environment, then there never will be such a disincentive. They can always hide behind the organization, or perhaps the manipulative, false rhetoric that they are simply looking out for shareholder profits.

A false, ill-justified argument can be disassembled from multiple angles. One of the trivial counterarguments to our current wrong state of affairs is that the above mentioned profits are not actually real profits. It's actually people stealing from others. So many people engage in the same behavior that they can't call out the serious offenders without giving up their own mask.

Humanity en masse actually does not deserve better. That's why we're in this situation. If we did give up our lies, we would demand others do too, as we demand a good world.

The mechanism we have for this is supposed to be competition. If one company is screwing you over, you patronize a different one.

This, of course, doesn't work in consolidated markets, and so what is necessary is for consolidated markets to be deconsolidated.

> Companies are like machines whose sole purpose is to make a profit.

I think I understand that you mean to say "Corporations", whose governing body is made up of board members and executives. In that sense, there certainly seems to be a strong correlation.

In my case, however, I started a game company this year, and my goals are not profit driven. I haven't sat down to write things out but I probably should. Loosely, my company's two main goals:

- To make fun/mindblowing/entertaining pieces of Art. This is done by working on the gaming dreams that myself and my employees have.

- To give my employees a future where they care about the company as much as I do, feel financially well compensated and satisfied in their career, and have support for their aspirations and ideas.

I agree, 'corporations' is definitely a better fit for the argument I'm trying to make.

It's perfectly fine if making a lot of money is not the most important thing to you personally. However, your company will obviously have to at least be at least breaking even in order to continue to exist so that it/you can do the things that you do care about.

From that viewpoint, profitability (defined as 'at least breaking even', as opposed to 'maximizing $$') is still the most important thing because the very existence of the company depends on it.

Those are your goals, and your company's profits may enable you to achieve them. Your company's sole purpose is getting you those profits.

That's economics 101, stop idealizing business entities.

Companies aren't often started just to make profit. Founders are usually passionate about the product / service they are creating, and want to create it to make a nice contribution to the world, and also make their living from it: best of both worlds.

It starts to change when a company is becoming too big. The original founder(s) usually leave or they themselves become infected by the money. In any case, everything becomes more nasty: people are being treated more like numbers, clients too, less personal contact, more lawsuits, etc.

I think the solution is very simple: just make a size limit to how big companies are allowed to grow. They'll have to split up and compete with each other. Way more healthy economy.

Besides generating profits for shareholders, let's amend the law to require that business activities also avoid causing harm and benefit society. This means every decision would need to balance the interests of shareholders with those of society at large. Such a requirement could lead to reduced profits for shareholders. Moreover, this change would need to be implemented worldwide, otherwise, capital might simply shift to regions with less stringent regulations.
None of the DEI initiatives have anything to do with pure profit. If pure profit was the prime driving initiative, Google Gemini would not turn out like it did.
No, DEI is mostly implemented to be political correct, so that they are somewhat protected from being targeted for those kind of controversial topics. In other words, very important commercial incentive.
If you want to dedicate your company to a purpose over profit, it should be something like this: https://en.wikipedia.org/wiki/Social_purpose_corporation
Most senior leaders I've experienced are preserving profits so they can maintain headcount. Is it without conscience to make sure thousands of people retain jobs? Even if it's ego driven it's still mutually beneficial.
Hard not to act as they do when its consumers happily reward them with their money.
If only there were someone, or some institution that could think more long term than mindless consumers. We could call it a Governing board or something!
> Companies are totally allowed to have no conscience

I don't think companies are going to form a conscience any time soon.

We need to deal with the fact that they're best viewed as being inherently sociopathic and regulate them effectively.

Perhaps a better alternative would be to stop anthropomorphising abstractions, and not try to weirdly attribute intentionality, independent agency, or sociopathy to the same thing we're acknowledging is incapable of conscience because it isn't a person.

Corporations are organizational models employed by humans in pursuit of human motivations. They are not entities unto themselves. Everything is humans, all the way down.

Corporate personhood means that legally they are. If we stripped that away and let the board of governors go to jail for doing blatantly illegal stuff, then they might stop being sociopathic.

I'd also like a pony.

Corporate officers who commit criminal violations in the conduct of their job are already legally liable for their behavior. The corporation they work for might also incur liability under the law of agency and vicarious liability.

Corporate personhood applies primarily to private law -- contract liability, civil torts, financial obligations and the like.

No, they'd still be sociopathic. They'd do the absolute minimum they have to do under the law, and no more than that - exactly as a sociopath would if watched by someone with the ability to hurt them.

Conscience is fundamentally a trait that requires some kind of physical personhood - an actual self-identity with empathy attached to it. Corporations, being pure legal fiction, have neither.

This is why it is imperative to keep them as small and toothless as we possibly can as a society, even beyond issues with monopolies.

Capitalism is a system of private property and voluntary exchange. There's tons of accountability - people can stop buying and interacting with these companies.
This isn't always the case. Some of these companies own and run the only methods of doing certain things. There are some places, for example, where you can't use cash to pay for things. That means that, in those places, you cannot stop buying and interacting with Visa and Mastercard, for example.
Honest question, can you provide a single example of a company that came to dominate an industry only to then go out of business purely because people chose to stop buying and interacting with them?

I honestly can't think of a single example of a monopoly, cartel, or industry leading company which has ever crumbled due to everyone collectively deciding not to do business with them. (without some sort of government regulation or technological advancement facilitating the change)

What is a "overly" capitalist system? Where we would find companies with a conscience for example? Argentina?
"Capitalist" is a nonsense term that no longer carries any meaning.

There is a revolving door between government and corporate leadership.

There is no functional difference between corporate America and public service at this point in time.

One does not rule the other: they are one and the same.

Social media companies have entire teams run by Federal law enforcement.

Federal leadership draws its senior staff from companies like Google.

It is impossible to conduct business without thoroughly invasive involvement of multiple layers of government telling you what you can do, how you must do it, tracking your actions to ensure you comply, and levying obscene punishments if you don't.

For this "service" you are charged a level of tax that would make the Pharaohs green with envy.

Epic isn't squeaky-clean, but Apple is making dangerous and dumb decisions in this whole debate.

Banning third-party payments was one thing, but then Apple banned publishers from TELLING people about the ability to pay through a Web site.

That is not just unnecessary from a business standpoint (since the vast majority of people opt for the most convenient thing); but it's so offensive that it invites crackdowns, implemented by ignorant politicians and legislative bodies... hurting Apple's bottom line.

Apple is tarnishing its image and earning it a place among the true offenders of "big tech," a place it mostly doesn't belong because it's not a gatekeeper to huge swaths of the Internet and commerce the way Google, Amazon, and Meta are.

>but it's so offensive that it invites crackdowns, implemented by ignorant politicians and legislative bodies... hurting Apple's bottom line.

Apple is a billion (nay trillion) dollar company with the best lawyers and accountants in the world. They clearly believe that the added uncertainty and negative perception that could be attached to their brand by allowing systems that can increase fraud and malfeasance is more harmful to their bottom line than maintaining their walled garden with all the accompanying "crackdowns".

I, for one, agree with them. I would much rather keep the existing system for both myself and my extended family members and people who rely on me as their tech person than allow these third-party vultures to further complicate and enshittify the system. In the current case, if my parents bought something on their phone, I know exactly where to go to see the purchase and can easily help them refund it or, if it's a subscription, cancel it. Corporations misleading people into using external payment systems and channels in order to make a quicker buck (and keep more of that buck) is easily a worse experience for everyone involved except the vultures.

It seems pretty clear what should happen here: Apple should be able to require you to accept their payment system, but not to require you to charge uniform pricing across payment systems, and not be able to charge you anything for sales outside of their payment system.

Now you can continue to use Apple's payment system all you like, but if Apple continues to charge 30% when e.g. Stripe charges ~3%, you're going to pay the difference for the privilege.

And with any luck that would encourage Apple to match Stripe's fees, but either way, now the choice is yours instead of the extra fees being hidden and mandatory.

How does that seem clear? Apple should provide services and support for people using the payment system without getting any gain from that system?

You're being disingenuous to suggest that the only benefit Apple provides is a payment system.

The test of whether they're in compliance should be whether it's feasible to sell an app to an iOS user without paying anything to Apple.

Apple can charge for whatever they want, but they can't put up a troll bridge between other businesses and their customers. Then you can choose whether to use their service or not. If they want to charge for payment processing, you can use Stripe or Paypal. If they want to charge for XCode, you can use VSCode or emacs. If they want to charge for app distribution, you can use the Epic Games Store -- or Google Play -- or host it yourself on AWS or your own servers. Whatever they want to charge for, they have to open up to competition.

If their services are good and well-priced then people will choose them even when they have an alternative. If they're not, they won't.

I'm not aware of any duty to deal in the DMA.
> 12. The gatekeeper shall apply fair, reasonable, and non-discriminatory general conditions of access for business users to its software application stores, online search engines and online social networking services listed in the designation decision pursuant to Article 3(9).

Apple don't get to deny access to their main competitor in this space just as a show of force. That is not fair, reasonable or non-discriminatory.

Epic also intentionally broke agreements with Apple before. Non-discriminatory doesn’t mean they have no grounds to terminate Epic’s developer accounts, and Epic is continuing to make themselves look untrustworthy by trying to publicly and explicitly shank Apple. Spotify is also trying to shank Apple in all the same places Epic is, but they also didn’t go behind Apple’s back to deceive the prior review process in contravention to a signed agreement, file suit and spin-out a pre-prepared publicity stunt-filled PR campaign and then go on to court to testify that all of that was done on purpose. Tim Sweeney and Epic did.

It sucks because I was hoping this fight was basically in the rear-view mirror now, but it’s hard to argue Apple has no grounds for calling Epic untrustworthy and not even maintaining an arms-length business relationship in one jurisdiction with them. Who’s to say Epic wouldn’t try something similar again? Apple can still set terms under the DMA, and Tim has been publicly campaigning that these terms violate the DMA which isn’t actually his call to make.

Also one other point:

> Apple don't get to deny access to their main competitor in this space

As of today, and yesterday, and going back to the dawn of the iPhone: Epic isn’t anything in “this space” let alone Apple’s main competitor. They have stated that they intend to compete, and want to compete with Apple in this space, but Epic’s iPhone app marketplace is vaporware. It hasn’t shipped, it doesn’t look like they’re going to be able to ship now, and in its entire history of being discussed, has earned Epic €0.00 to date.

>Epic also intentionally broke agreements with Apple before.

This is funny to point out since they did it specifically to sue over it (you pretty much can't other wise).

So Apple has their draconian 30% cut or there's literally no other way to have an application run on iOS policy, you can't challenge it without breaking it so you can sue, and because you broke it to sue you are now permanently barred from every making another iOS app.

Yea that seems fine, no monopolistic behavior here, it's only 49% of the phone market so it's fine.

They had the alternative of pulling their software on principle and suing, but they wanted the fight they would have by having Apple suspend and then terminate their developer accounts to bring more public opinion to their side, and they sure got the fight. As a developer enrolled in the program, it would have been hard to argue they didn’t have standing as long as what they were arguing had plausible legal merit (it did, it may not have been the winning argument in the end, but it was at least plausible at the beginning and they won on one count).

The goal wasn’t just to sue Apple, it was to shank Apple with one hand while filing suit with another and they had multiple opportunities to get their account unsuspended at the beginning of the lawsuit even while the case proceeded, before it was eventually terminated.

> They had the alternative of pulling their software on principle and suing, but they wanted the fight they would have by having Apple suspend and then terminate their developer accounts to bring more public opinion to their side

I think that gave them much stronger standing and claimed damages.

It's a weaker argument if they voluntarily removed themselves from the AppStore.

Apple could have trotted out some 'We typically work well with developers in Epic's situation, but they never approached us so there was nothing we could do' excuse.

By forcing Apple to take an action, it concretely showed that Apple does in fact remove access if companies tried to forward users to alternate payment methods.

There is no alternative to mobile computing. Both vendors have draconian rules.

These are devices so essential to modern functioning that the regulators need to come and tell both Apple and Google that unlimited web installs are user rights.

Epic is right. Apple and Google are monopolies over an entire class of computing, and it's a 100% artificial racket.

I realize the gravity is a lot less here, but consider Civil Rights protests where people intentionally but peacefully broke (bad) laws in protest. I would consider what Epic did in a similar way.
> So Apple has their draconian 30% cut

This notion that 30% is 'draconian' is curious since Steam -- on supposedly open PC -- costs devs more, and even 30% is wrong since it's not 30% below a certain revenue level or in the second year onwards, again in line or less than stores on other platforms.

If you don't like Steam's cut, you can go to Epic or GoG or Origin or Microsoft.

If you don't like Apple's cut, you couldn't (effectively still can't because of the absurd 1 000 000 installs/updates rule) go to any other storefront.

Before you bring up Xbox or Playstation: those devices are not essential computing devices. You can't function in modern society without access to both a computer and a smartphone. That puts a special burden on the companies that effectively own the software stack on those devices.

Not that I see it happen, but lets paint a PC horror scenario:

- Microsoft starts demanding to motherboard and laptop manufacturers to include their Pluton security chip

- Secure Boot can no longer be disabled

- They restructures the Windows kernel in such a way that DirectX is much faster than Vulkan

- They only allow games on the Microsoft Store access to DirectX 12.3 and 13

- Hell, _anything_ not installed from the Microsoft Store has dark-pattern warning pop-ups that make it both too confusing and too scary for the layman to install things from outside the store

- Microsoft also starts to demand a €0.50 fee from any developer that gets more than a million installs - with some updates counting towards installs. _This includes free applications_.

Do you see the problem now? Apple is essentially doing all of these things.

The PC isn't "supposedly" open, but open. Steam do collect a 30% fee but crucially, they have to work for that fee by competing on core service quality and quality of life features (like cloud saves).

Apple is perfectly entitled to ask for a 30% fee, as long as they allow for competition on equal footing (for clarity, this means they don't try to collect exorbitant rent from their competitors first). Let the free market sort it out.

Yes except Steam: * Takes their cut for games purchases on their store

* Doesn't have any rules about in game payments/utxns, if you want to use steam wallet for that they'll take 30%, if you want to process the payment yourself or direct users to a website they don't care at all

The last point is Apple's monopoly, along with no sideloading; because if I don't want to use Steam then I can use whatever else I want to.

But I agree, 30% even just on games purchases is too high, and we should reduce this profiteering across the board, Apple, Google, Microsoft, etc. Good thing we can multi task, right?

I'm not a lawyer so please excuse this potentially dumb question, but why do they have to break the agreement to sue them?
Also not a lawyer, but my understanding is that in order to have standing to sue, you must be able to show that you were damaged by the behavior you are trying to file suit against.
It's not 49% of the phone market in the EU. More like 36%, and in some markets like Italy and Spain, far far smaller.
It doesn’t matter. A company does not have to be a monopoly to be a gatekeeper under the DMA. The DMA defines gatekeeper (among other things) in terms of the number of users in the EU and revenue in the EEA. According to those definitions Apple is a gatekeeper and the DMA applies to them, monopoly or not.
> This is funny to point out since they did it specifically to sue over it (you pretty much can't other wise).

This is simply wrong.

Many have sued Apple over the legalities of the development agreement over the decades. They just always lose.

And Epic could've chosen to follow Spotify and lobby behind the scenes but instead chose the PR move.

> This is funny to point out since they did it specifically to sue over it (you pretty much can't other wise).

Are you a lawyer? You sound awfully assertive in making this claim, especially with the slight contempt/patronizing tone.

> Yea that seems fine, no monopolistic behavior here, it's only 49% of the phone market so it's fine.

iPhone marketshare in the EU is about 22%.

I find it hard to see Apple being in the right here. While I'm not so naive as to think one company is "good" and the other "bad", I do think that as developers Epic is fighting for our best interests. Apple's app store monopoly serves only Apple.
Criticize Apple vigorously and criticize Epic vigorously. Epic's been fined for dark patterns, data collection on minors below 13, and their entire business model relies on getting children to buy worthless cosmetic skins out of peer pressure, while optimizing for engagement and addiction. It's a predatory business model that should be illegal.

One of their main goals in bypassing IAP is to make these microtransactions non-refundable, so parents are screwed. They're the great satan.

Source for your last point there, please.
In the right and within their rights are two separate things. I’m not exactly happy with all of Apple’s App Store policies either, but they have their rights.

I also don’t believe Epic is doing this for anything other than Epic’s self-interest. They have no duty to other developers, and this is a potentially new line of business for them, not a liberation of iPhone app developers.

I do not. Tim Sweeney testified that had Apple offered a special deal just for Epic, they would have taken it.
Maybe I should rephrase that, they're indirectly fighting for our best interest. Obviously their motives are selfish, but their wins are generally good for the rest of us in this context.
Epic does have a history as an app store. They are the main competitor to Steam on Windows, famous for giving away games every week to drive traffic.
Apple doesn’t compete with the Epic Games Store on Windows anymore than the Epic Games Store competes with the App Store on iPhones.

EDIT: just realized I originally mixed up Origin and the Epic Games Store. My bad.

>Origin competes with the App Store on iPhones.

I guess we'll see in the light of the DMA. Apple didn't allow EA to compete before, but who knows now.

But this seems to be missing the point. Epic Games wants to put their store on mobile, they had android on the roadmap for years. They very much want to compete.

These words have a specific, narrow meaning and your laymans impression is the opposite of helpful in interpreting them.
In the context of standards essential patents, yes. In the case of DMA compliance, it’s a bit more TBD until the EC issues more guidance and actual legal precedent is set, but what we do know is that the DMA still allows Apple to set terms that 3rd parties must both agree with and abide by which means having an active developer account with Apple. If Apple believes Epic will not abide by the terms in good faith, they don’t have any reason to maintain a relationship with Epic, and Epic has given Apple plenty of reasons.

The real and interesting question is whether they can do this before they prove Epic’s non-compliance with the new terms.

This will be another issue determined by EU courts, but Apple is not justifying it as a show of force. They're justifying it based on Epic's prior breach of contract and statements they've made. I think based on the record, courts will side with Apple.
Why would a 4 year old breach of contract warrant a ban today instead of 4 years ago? The trigger was that Epic criticized Apple, that doesn't seem like a warranted reason to ban someone even if they did something bad 4 years ago.

Also since the DMA bans arrangement that Epic breached before, there is no reason to suspect that the EU account will breach anything new now, I really doubt EU will let this slide.

> The trigger was that Epic criticized Apple

Epic has been criticising Apple almost every single day.

Apple themselves said that the trigger was Epic criticizing them.
presumably apple's ban on epic games is for life, not just for a year or two. and registering a new account doesn't change that - it's just ban evasion.

to wit: you are still banned from reddit or paypal or any other online service, even if you create a new account. if they can link it they'll ban that one too.

and this is a new account that epic games tried to register recently. so it got banned too. Not that complex/hard a concept really, unless you're trying not to understand it.

again, do you think you have a right to create a second reddit account after your first one got banned from the service? how about a bank account, do you get a do-over if you do some fraud and get your first account banned?

> presumably apple's ban on epic games is for life, not just for a year or two. and registering a new account doesn't change that - it's just ban evasion.

They didn't ban every epic account back then, just the violating account. I am pretty sure most of epic games accounts are still there, just the fortnite account got banned.

If Reddit were in the kind of market-dominant position than Apple is, then yes, absolutely, it should have been a right.
The courts and 49% of people would side with Apple even if it turned out they were grinding up orphans to make iPhones.
The EU courts won't, nor will the Commission.
Apple has nothing on their side aside from a few tweets criticizing them, that just won't cut it as an exemption to the DMA. It's not like Epic released malware or anything.

Remember that the whole goal of the DMA is that actors like Apple and Google can't decide to block competiton on a whim, the exact thing they are doing right now.

According to the article, they have the official court ruling…
They don't have a court ruling on this that has any relevance in Europe.
In the US and in most countries, sure that'll be enough but in the EU, the DMA superseded their contracts. Apple might have got away with it if they had limited the ban to outside the EU but as I understand, they didn't.
a) It is fair and non-discriminatory. Epic was found by the courts to have violated the terms of the agreement that they signed and Apple had the right to terminate it. They have done this with other developers as well.

b) Epic is not their main competitor in anything.

Have any other companies announced credible plans for a competing app store? I'm at least not aware of any, which would absolutely make Epic their main competitor.

It is pretty hilarious how people think some US court judgement would have any relevance on EU anti-trust regulation.

Yes, such as MacPaw's SetApp marketplace. https://www.theverge.com/2024/2/29/24086792/setapp-subscript...
I think you're confused how this works.

Apple doesn't need a court judgement to terminate a contract. They can just do it if they believe terms have been broken. Epic sued them in the US to reverse this decision and the courts found in favour of Apple. The process in the EU starts the same way.

And this is a basic contractual dispute seperate from the DMA which is why the many other parties have not also had their contracts terminated.

Also running an App Store is hard. It's going to take more than a few days to see competitors.

Well, yes, clearly I think you're confused about how this works given you keep thinking that a US court ruling is going to overrule the DMA on EU soil.

The entity that Epic will be complaining to about this will not be a US court. It will be the EC. The EC will look at the text and the intent of the DMA: to permit competing app stores. They'll also note that Apple has (arbitarily and without any technical justification) made a developer account a requirement for launching a competing app store. And finally, they'll note that Apple is terminating the developer accounts of the company most vocal about intending to launch a competing app store.

It doesn't matter what text Apple has in their contract about how they're permitted to close developer accounts for any reason they want to. It doesn't matter that they have a courting ruling from some other country. Apple chose to gatekeep app store competition on membership in the developer program. To prevent this from being used as an end-run on the DMA, the EC just an't allow Apple to terminate the licenses on a flimsy pretext. And "Tim Sweeney tweeted mean things about us" is not going to work.

How is that at all relevant to future litigation over the DMA, which is what this thread is discussing?

It sounds like you lost the thread, not GP

You’re missing a key point by calling this a “competing app store”. That’s not what it would be. It would simply be Epic’s app store with Epic’s apps in it, the purpose being to maximize Epic’s revenue on Epic’s games. Apple, in case you haven’t noticed, isn’t a game company — they don’t compete with Epic. Microsoft does. Steam does. Apple doesn’t. In fact, given that Epic games haven’t been on iOS in ages, there’s literally zero competition even there.

It’s kind of silly to think that other companies that actually compete with Epic would choose to publish via the Epic store, since they’d just be giving money to their competitor. Either they’ll build their own stores or they’ll continue business as usual, using the device manufacturer’s stores.

To your other point, while a US court judgement is unlikely to have direct relevance to EU regulation, it does help establish a pattern of behavior on Epic’s part.

It’s also important to note that the provisions for establishing an alternative app store are designed to protect the consumer. Repeated violations of contractual agreements is clear evidence of a company’s untrustworthiness, and it would be irresponsible for Apple to do anything other than exercise the termination clause as a result..

No, it wouldn't be an Epic-only store.

One reason we know this is that Epic Games Store on PC isn't Epic-only.

Another reason we know it is that Apple has (arbitrarily) forbidden app stores that aren't open to third parties. Even if Epic wanted to make it a first-party only store (why?), they couldn't.

You claim that Apple isn't a gaming company. It's true that Apple doesn't really develop or publish games. But the App Store is the world's largest games store, larger than e.g. any of the console games stores or Steam. Every estimate I can find is that significantly more than half the App Store revenue is from games.

Finally, you suggest that nobody would publish games on Epic's store. That might be true on iOS just due to the unreasonable terms Apple set for that (in particular the core platform fee), but it certainly won't be true due to competitors not wanting to give 12% to Epic rather than 30% to Apple. This fear hasn't stopped companies from publishing their games on the PC EGS.

Apple claim that all their requirements are there just to protect the consumers. They might be telling the truth, they might be lying and actually just want to make life as hard as possible for the competing app stores. It's hard for anyone on the outside to be sure which. But terminating the developer account of the most credible competitor on the day DMA enforcement starts is a pretty bad look, and makes it quite hard to believe Apple's story on why the requirements exist.

Apple absolutely competes with Epic. Mobile in general and iOS in particular are massive markets, both player base and profit wise, for gaming.

On iOS apple has decreed that they deserve 30% of that action. And is now banning the developer of one of the most popular games (on any platform).

"it happened via operation of private contract so it is thus presumptively fair and non-discriminatory" is not how the DMA works, at all.
You don't have a duty to hire in USA, but you can still get in trouble for illegally firing someone for the wrong cause. Same applies here, this isn't rocket science.
Right, the major difference being that Epic is not an employee of Apple and thus cannot benefit from employment law. The terms of their relationship is governed by contract law, and now the DMA.
DMA, Apple can't just retaliate for Epic complaining about them, this doesn't mean that Apple is forced to deal with everyone they are just banned from retaliating for certain things:

> 6. The gatekeeper shall not directly or indirectly prevent or restrict business users or end users from raising any issue of non-compliance with the relevant Union or national law by the gatekeeper with any relevant public authority, including national courts, related to any practice of the gatekeeper. This is without prejudice to the right of business users and gatekeepers to lay down in their agreements the terms of use of lawful complaints-handling mechanisms.

I am not 100% certain that would apply here, but if the DMA doesn't protect against these things then I am pretty sure that EU will plug that hole to ensure gatekeepers can't retaliate unfairly.

Even if the "hole" is plugged you'd have to prove in court you were being retaliated against. Vibes are not going to be enough. You'd need a decision maker's e-Mail saying "you know what, fuck Epic cancel their account". Without that smoking gun all Apple needs to do is show all the instances of Epic violating their contract. Same if they canceled your account because of violations.
Here it is easy since Apple admitted to it. Them bringing up all of Epics recent criticism of them here works against them, it is like talking a lot about someone's race when you fire them, that doesn't look good in court even if you also gave another reason. For example firing someone with the reason "He was a lazy black guy" could be read as you firing him for being lazy, but I doubt courts would see it that way.
You should read the US ruling [1]. This is not about Epic criticising Apple.

This is because Epic did things like pushing a hidden IAP system inside Fortnite to evade review and then at a later point switching it on. This sort of thing has been forbidden since the early days of the App Store. It is a fundamental part of the Apple-Developer contract that you allow reviewers access to all functionality.

[1] https://law.justia.com/cases/federal/appellate-courts/ca9/21...

You keep repeating this, but I don’t see how it is relevant. Apple’s rules are not relevant anymore under the DMA. Under the DMA, companies are allowed to set up alternative app stores period. It doesn’t matter if they violate Apple’s App Store rules prior. The point of the DMA is exactly that you can make your own App Store that doesn’t have to comply with Apple’s rules.

I can understand that Apple wants to safeguard their platform by requiring notarization, etc. But they are playing with fire here. One outcome of misbehaving could be that the EC will require full sideloading (Android-style), so that Apple cannot sabotage third party stores anymore, like they are doing now.

Apple is asking for a clear commitment to honor its contract this time. I'm pretty sure a court ruling on reinstating the account isn't going to also require a clear commitment to honor the contract.
As long as Forkknife continues to print money, they can afford the battle.
That’s very much a Pyrrhic victory if Eoic doesn’t have access to the US market. The court ruling in the US said that Apple has the right to terminate their account.

From the linked article

> This judgment stated that “Apple has the contractual right to terminate its DPLA with any or all of Epic Games’ wholly owned subsidiaries, affiliates, and/or other entities under Epic Games’ control at any time and at Apple’s sole discretion.”

Apple Terminates Epic Games' Developer Account (USA)(2020) https://news.ycombinator.com/item?id=24309632
This is about Epic having access to the EU market.
That’s why it’s a Pyrrhic victory. They have access to the EU market which is much less profitable than the US market.
Pyrrhic implies that the battle is over. I see it more as a foothold for a much longer battle. I'm sure North America and Asia aren't ignoring this whole ordeal.

It should also be noted that this article specifically talks about Epic's Sweden AB account being banned. It doesn't affect the state of the US account (which may very well be banned anyway).

> Pyrrhic implies that the battle is over

Other way around, "victory" implies the battle is over, Pyrrhic as a modifier implies a victory that inflicted such a devastating toll that it was tantamount to defeat.

Right now they have access to neither. A less-than-complete win is not a Phyrric victory.
"Thin edge of the wedge" might be the better way to see it?

Epic have cracked open the walled garden in one part of the world (EU).

They need to consolidate that win in the EU so it doesn't disappear, then leverage it to break open the walled garden in other places as well.

Epic is just Tencent which is an organ of the Chinese state. They might have been able to break open Apple like an egg in Europe but the final boss battle is going to be much harder for them.
This is total nonsense, Tencent only has a minority stake in Epic, like they do with most other gaming companies.