Epic Games CEO slams Apple and Google’s “gangster-style” practices

Epic Games, known for Fortnite and Unreal Engine, has long challenged Apple and Google’s dominance, suing them for restrictive app store policies that impose high fees on developers and block alternative app distribution, limiting competition in the mobile market

Epic Games CEO Tim Sweeney has reignited his battle against Apple and Google, accusing them of monopolistic practices that stifle competition and harm developers. Speaking at a Y Combinator event on April 2, Sweeney labelled the tech giants as "gangster-style businesses" that prioritize profit over compliance with legal rulings.

Epic Games, the company behind Fortnite and Unreal Engine, has long challenged the dominance of Apple and Google in the mobile app market. Epic previously sued both companies, alleging that their restrictive app store policies force developers into high-fee payment systems while preventing alternative app distribution.

While Epic won its lawsuit against Google, it lost against Apple. However, a court ruling forced Apple to allow developers to link to third-party payment options, a move that was meant to increase competition. Epic argues that Apple’s response—a mere 3% reduction in commissions—was a deliberate loophole to maintain its grip on the market.

Unfair play: Big Tech’s self-serving tactics

Sweeney further accused Apple and Google of using scare tactics to discourage users from downloading apps outside their official stores. On Android, he said, users attempting to install the Epic Games Store receive a security warning about "unknown sources," causing 50-60% of users to abandon the installation. On iOS in Europe, Apple issues similar warnings when users attempt to install the Epic Games Store, despite new regulations allowing third-party stores.

Sweeney labelled these practices "textbook self-preferencing," accusing Apple and Google of intentionally misleading users to maintain their app store dominance.

Apple’s core fee: A costly barrier for developers

Beyond installation hurdles, Sweeney pointed to Apple’s new pricing model for third-party app stores as another barrier to competition. While Apple’s previous 30% commission has been reduced, the company now imposes a “core technology fee” of $0.50 per install per year for apps with over 1 million downloads.

Sweeney warned that this model effectively blocks free-to-play games from thriving on the Epic Games Store. "Unless your app generates massive revenue per user, Apple will bankrupt you," he said.

The road ahead for Epic Games Store

Despite these setbacks, Epic remains committed to expanding its app store. The Epic Games Store on iOS has already attracted older catalog games, and by the end of the year, it will open to new developer submissions, aiming to challenge Apple and Google’s app store dominance.

Sweeney closed his speech with a strong warning: "Crime pays for Big Tech. They will keep choosing profits over fairness until regulations are enforced aggressively."