Epic Games is intensifying its push to challenge Apple’s control over mobile app distribution in the European Union, unveiling plans to expand its mobile app store with nearly 20 third-party games and a free games program.
Epic’s CEO, Tim Sweeney, has labeled the fee a major barrier to competition, particularly for smaller developers. In a blog post Epic stated, “Even if a developer decides to list just one game on the Epic Games Store, they have to pay the fee every time any of their games are downloaded on iPhones or iPads, whether it’s from the Apple App Store or an alternative store.”
Epic plans to temporarily mitigate the fee’s impact by covering the CTF for developers participating in its free games program. The company said:
“To ease the burden, Epic will be covering the CTF for all titles for developers that participate in the Epic Games Store’s free games program on iOS or iPadOS devices, regardless of where the featured title is downloaded from. This is not financially viable for every third party app store or for Epic long term, but we’ll do it while the European Commission investigates Apple’s non-compliance with the law.”
While this measure is financially unsustainable in the long term, Sweeney views it as necessary to pressure regulators to enforce the EU’s Digital Markets Act (DMA), which mandates greater openness in digital platforms. According to Sweeney, “We feel like we have to be the ones breaking the logjam there.”
Thanks for the patience – we are live! https://t.co/YJmpz8t3yd
— Epic Games Store (@EpicGames) January 24, 2025
Free Games Program and Technical Setbacks
A cornerstone of Epic’s strategy is its free games program, designed to attract users and developers by offering popular titles at no cost. The program will initially launch with Bloons TD 6 and Dungeon of the Endless: Apogee, with new titles added monthly before shifting to a weekly schedule.
Epic’s broader vision for the mobile app store remains clear. Sweeney emphasized the importance of interoperability in a press briefing, stating, “If you buy a game or digital items in one place, you have the ability to own them everywhere.” This focus on a unified, cross-platform store reflects Epic’s long-term goal of reshaping the mobile app ecosystem.
Understanding Apple’s Core Technology Fee
The Core Technology Fee, introduced as part of Apple’s compliance with the DMA, applies to apps distributed on iOS via alternative stores once they exceed one million annual downloads.
Apple justifies the fee as a reflection of the infrastructure it provides to developers, stating on its website that the fee “reflects the value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users.”
Epic, however, views the fee as a deterrent to competition. The company has argued that the CTF disproportionately impacts smaller developers and prevents the growth of alternative app stores.
In addition, Epic has criticized Apple’s use of “scare screens”—warning pop-ups that appear when users attempt to install apps from third-party sources—claiming they deter over 50% of potential users.
Regulatory and Competitive Challenges
Epic’s struggle to expand its mobile store in the EU is part of a broader conflict between the company and major mobile platform operators like Apple and Google. The DMA has been a pivotal regulation in forcing Apple to open its ecosystem, enabling the launch of alternative app stores in the EU.
However, Epic contends that Apple’s fee structure undermines the DMA’s intent, calling for stricter regulatory enforcement. Sweeney underscored the challenges posed by the current system, stating, “We won’t really have app store freedom, even in Europe, unless the DMA is robustly enforced.”
Epic’s legal battles are not limited to the EU. In the United States, the company has accused Apple and Google of monopolistic practices, with mixed results.
While Google was ordered to allow competing app stores within its Play Store ecosystem, Apple’s policies remain more restrictive. Epic’s inability to offer Fortnite on iOS devices in the U.S. highlights the disparity between the two markets. “The ridiculous irony is that Epic can compete with the App Store on equal terms only in Europe,” Sweeney noted.
Implications for Developers and Consumers
The implications of Epic’s efforts extend beyond the company itself, impacting developers and consumers alike. For developers, the ability to list apps on alternative stores offers the potential for lower commissions and greater flexibility.
However, the CTF poses a significant financial burden, particularly for small studios with high download volumes but limited revenue. While Apple offers exemptions for non-profits and developers earning under €10 million annually, those exceeding the one-million-download threshold face substantial costs.
For consumers, Epic’s initiative promises increased competition, which could lead to more diverse app offerings and potentially better pricing. However, the success of alternative stores depends on user trust and convenience.
Many users remain hesitant to move away from established platforms like the App Store, partly due to Apple’s “scare screens” and the perceived security risks of third-party stores.
Broader Context and Future Outlook
Epic’s challenges in the EU mirror broader trends in the mobile app industry, where regulatory efforts aim to reduce the dominance of platform operators.
Google’s recent legal defeat in the U.S., which requires the company to allow third-party stores on Android for three years, underscores the growing scrutiny on tech giants’ practices. Meanwhile, Amazon’s struggles to compete with Google Play highlight the difficulties faced by even well-resourced companies in breaking into the app store market.
As Epic continues its expansion, the company’s ability to overcome these barriers will depend on several factors, including regulatory support, developer adoption, and consumer trust.
For now, its decision to cover the CTF for participating developers represents a bold attempt to challenge Apple’s dominance, even as it faces significant financial and logistical hurdles.