Epic Games CEO Slams Apple and Google as ‘Gangster-Style’ Giants: A Call for Competition in the Tech Industry
Tim Sweeney, the CEO of Epic Games, known for its popular title Fortnite and Unreal Engine development tools, has made headlines by criticizing tech giants Apple and Google as “gangster-style businesses.” Speaking at a Y Combinator event, Sweeney highlighted how these companies engage in practices that negatively impact his business and limit competition in the app marketplace.
Epic Games’ Ongoing Battle Against Big Tech
Epic Games has emerged as a significant player in the ongoing fight against monopolistic behavior in the tech industry. The company has taken legal action against both Apple and Google, accusing them of unfair practices in their app stores.
Legal Outcomes and Implications
- Victory Against Google: Epic Games successfully won its case against Google.
- Challenges with Apple: While Epic faced setbacks in court against Apple, the ruling mandated that Apple must allow more competition by modifying its App Store policies.
- Linking to Alternative Payment Methods: Developers can now link to other payment options, although Epic is still in litigation with Apple regarding compliance with this ruling.
Despite the court’s decision, Sweeney expressed concern over Apple’s compliance, noting that the changes made were insufficient and still burdensome for developers.
Concerns Over User Experience
Sweeney pointed out that the practices of these tech giants are detrimental to user experience and, consequently, to Epic’s business. For example, when Android users attempt to install the Epic Games Store, Google displays a warning indicating that the software is from an “unknown source.” This warning, referred to by Sweeney as a “scare screen,” results in a significant abandonment rate of 50-60% among potential installers.
A similar scenario unfolds on iOS, where users face warnings that lead to a comparable drop-off rate. Despite new regulations in Europe allowing the Epic Games Store, Apple continues to display these warnings, further discouraging users.
The Impact of Self-Preferencing
Sweeney criticized this approach as “textbook self-preferencing,” asserting that these tactics allow big tech companies to maintain their monopolistic hold on the market.
The Financial Toll on Developers
During his address, Sweeney emphasized the financial barriers imposed by Apple on developers wishing to distribute games via the Epic Games Store. The fee structure on iOS discourages major game developers from using Epic’s platform. For instance, Apple charges a “core technology fee” of 50 cents per install for apps exceeding one million downloads, which can be prohibitively expensive for free-to-play games.
- High Grossing Apps: Only apps with substantial revenue per user can afford to use the Epic Games Store on iOS without incurring significant losses.
- Future Developments: Despite these challenges, Sweeney indicated that the Epic Games Store will open for developer submissions later this year, which may enhance its catalog on both Android and iOS.
In conclusion, Sweeney’s remarks underscore the ongoing struggles faced by developers in a landscape dominated by tech giants. As Epic Games continues to advocate for fair practices, the hope remains that future regulatory enforcement will lead to a more equitable environment for all app developers.
For more information on the impact of major tech companies on the gaming industry, visit Epic Games News or explore The Verge’s coverage on this topic.
