Apple is undoubtedly one of the world’s most profitable companies. However, if you think the tech giant’s revenue comes solely from hardware sales like iPhones, iPads, Macs, and AirPods, you’re mistaken. The company also generates substantial income from its App Store, which technically offers alongside these products.
However, this revenue has been under threat due to the European Union requiring Apple to open its ecosystem to third-party app marketplaces. The situation is so dire that Apple has had to allow marketplaces from adversaries it has been in legal battles with, such as Epic Games. Here are the details…
Apple Approves Epic Games’ App Store
The battle between Epic Games and Apple continues at full speed. This rivalry, which made headlines in the past with events like the removal of Fortnite from the App Store and Epic’s lawsuit against Apple, has recently resurfaced with the third-party app marketplace issue. Allegedly, Apple has been intentionally delaying the approval needed for Epic Games to launch its own app store in the EU region.
Apple has been using excuses like the store’s close resemblance to the original App Store during this process. Epic Games made the following statement regarding the issue:
Apple has rejected our Epic Games Store notarization submission twice now, claiming the design and position of Epic’s “Install” button is too similar to Apple’s “Get” button and that our “In-app purchases” label is too similar to the App Store’s “In-App Purchases” label. We are using the same “Install” and “In-app purchases” naming conventions that are used across popular app stores on multiple platforms, and are following standard conventions for buttons in iOS apps. We’re just trying to build a store that mobile users can easily understand, and the disclosure of in-app purchases is a regulatory best practice followed by all stores nowadays.
However, according to Apple, Epic Games is being a bit “dramatic.” The company states that the rejection is not due to a personal vendetta but simply because Epic Games did not meet the high standards required. In fact, Epic Games’ third-party app marketplace has been approved.
The Real Competition Begins
The real competition is just beginning. Unlike other App Store alternatives, Epic Games is a sizable company. With its connections, disdain for Apple, and vast resources, Epic Games has the potential to undermine App Store revenues in Europe. However, we can only wait and see if this will actually happen.
