Rival app stores. A new mobile ecosystem. And the key players in a battle that's been going on for four years remain the same.
Epic's challenge to Apple's App Store practices has found a foothold in Europe, where new laws are redrawing the competitive map. Similar concerns about App Store creation, in-app payments and fees have been raised in the United States, where Apple was able to block Epic from launching its App Store there. But the fight is already playing out vigorously in continental Europe, where Epic just debuted its mobile App Store.
The new store will offer gamers a host of titles, including Fortnite, which is set to launch a rival app store and return to the tech giant's iOS hardware in a move that could serve as a warning to Apple, with the game aiming to drive 100 million new installs on mobile devices.
Here we note that there are competitive issues related to the actual mechanics of downloading services on iPhones (and Android devices).
In a post announcing the launch of the Epic Games Store, Epic criticized Apple and Google, claiming that “While it's releasing on iOS devices in the European Union thanks to the Digital Markets Act, Apple still blocks all iOS users outside of Europe from accessing Fortnite for iOS and the Epic Games Store. Currently, the installation process for the Epic Games Store on iOS and Android is long because Apple and Google have intentionally implemented a poor installation experience – full of multiple steps, confusing device settings, and scary screens.”
Epic continued, “We will continue to fight in court and work with regulators around the world to remove the anti-competitive terms that Apple and Google impose on developers and consumers, so that we can build a better store for everyone.”
Payment angle
As for the economics of this model, Epic previewed its payment strategy in July, saying it would allow gamers to transact within Epic's ecosystem and app store, “offering great terms to all developers: 12% store fees on payments we process, 0% on third-party payments.” As has been widely reported, Apple also takes a 30% cut of sales when consumers download and use these apps. We note that Epic's fee structure, and its alternative app store, helps solidify its ecosystem within the Apple/Google hardware environment.
The path to do so was paved by the EU's Digital Markets Act, which requires companies like Apple to give other companies, including competitors, expanded access to their installed user base, and for Apple, it requires the tech giant to host different app stores and make them available for download onto European consumers' devices.
The Digital Markets Act itself stipulates that the so-called gatekeeper Big Tech companies “must, in certain circumstances, allow third parties to interoperate with the gatekeeper's own services”, “must give their business users access to the data generated during the use of the gatekeeper's platform”, and “must allow their business users to promote their offers and conclude contracts with customers outside the gatekeeper's platform”.
The European rollout may not be a sign of what will happen in the U.S., or whether app store policies will change across the board. But the company is allowing app makers to add payment buttons that direct users to other sites to enter payment information. And, as we reported here, the company is now allowing apps and developers to enable in-store payments using contactless NFC technology. For mobile commerce, games and app developers, commission structures are slowly changing.
Read more about: App Store, Apple, Big Tech, Digital Markets Law, EMEA, Epic Games, Epic Games Store, Google, In-App Payments, Law, Legislation, Mobile Applications, News, Payments, PYMNTS News, Regulation
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