Epic Games CEO criticizes Apple's App Store policies in interview
Epic Games CEO Tim Sweeney in an interview Friday censured both Apple and Google for their respective app store policies, claiming the companies' tactics stunt innovation.
Sweeney, who appeared on CNBC's Squawk Alley, called Apple's App Store an "absolute monopoly," pointing to the tech giant's 30% cut of in-app purchases and transactions. The publisher's current hit, Fortnite, generates massive amounts of cash and is consistently a top performer on both the App Store and Google Play store.
"Apple has locked down and crippled the ecosystem by inventing an absolute monopoly on the distribution of software, on the monetization of software," Sweeney said. He later added, "If every developer could accept their own payments and avoid the 30% tax by Apple and Google we could pass the savings along to all our consumers and players would get a better deal on items. And you'd have economic competition."
The CEO further took issue with Apple's decision to bar third-party app stores, including the Epic Games Store, from iOS.
Epic's platform launched in 2018 on macOS and Windows as a cost-effective alternative to dominant app stores. Unlike the App Store, the Epic Games Store commands a 12% slice of sales, making it a more attractive option for developers.
"They are preventing an entire category of businesses and applications from being engulfed in their ecosystem by virtue of excluding competitors from each aspect of their business that they're protecting," Sweeney said of Apple.
Epic is forging ahead with plans to bring its store to Android, but Sweeney also dinged Google for erecting barriers similar to those employed by Apple.
"Google essentially intentionally stifles competing stores by having user interface barriers and obstruction," he said.
Sweeney has long bemoaned App Store fees. In 2017, the executive called app store business models "pretty unfair" and claimed companies like Apple are "pocketing a huge amount of profit from your order - and they aren't really doing much to help [developers] anymore."
Sweeney is one of many developers to present criticisms of App Store policies in recent weeks. Apple's app business is the target of multiple international probes, including a U.S. House antitrust investigation into big tech that also involves Amazon, Facebook and Google. CEOs from each company were slated to offer testimony at a hearing on Monday, though the inquiry has been rescheduled.
Sweeney, who appeared on CNBC's Squawk Alley, called Apple's App Store an "absolute monopoly," pointing to the tech giant's 30% cut of in-app purchases and transactions. The publisher's current hit, Fortnite, generates massive amounts of cash and is consistently a top performer on both the App Store and Google Play store.
"Apple has locked down and crippled the ecosystem by inventing an absolute monopoly on the distribution of software, on the monetization of software," Sweeney said. He later added, "If every developer could accept their own payments and avoid the 30% tax by Apple and Google we could pass the savings along to all our consumers and players would get a better deal on items. And you'd have economic competition."
The CEO further took issue with Apple's decision to bar third-party app stores, including the Epic Games Store, from iOS.
Epic's platform launched in 2018 on macOS and Windows as a cost-effective alternative to dominant app stores. Unlike the App Store, the Epic Games Store commands a 12% slice of sales, making it a more attractive option for developers.
"They are preventing an entire category of businesses and applications from being engulfed in their ecosystem by virtue of excluding competitors from each aspect of their business that they're protecting," Sweeney said of Apple.
Epic is forging ahead with plans to bring its store to Android, but Sweeney also dinged Google for erecting barriers similar to those employed by Apple.
"Google essentially intentionally stifles competing stores by having user interface barriers and obstruction," he said.
Sweeney has long bemoaned App Store fees. In 2017, the executive called app store business models "pretty unfair" and claimed companies like Apple are "pocketing a huge amount of profit from your order - and they aren't really doing much to help [developers] anymore."
Sweeney is one of many developers to present criticisms of App Store policies in recent weeks. Apple's app business is the target of multiple international probes, including a U.S. House antitrust investigation into big tech that also involves Amazon, Facebook and Google. CEOs from each company were slated to offer testimony at a hearing on Monday, though the inquiry has been rescheduled.
Comments
A: This ignores the cost to the developers of setting up and running their own stores.
B: No they wouldn't "pass the savings along". they'd pocket it.
This is totally self serving and disingenuous statement by Sweeney.
I guess Apple didn't do all the work creating a groundbreaking new product (macOS), getting a loyal - and profitable - user base with macOS, and didn't create an ecosystem that allows anyone to develop software and have access to hundreds of millions of macOS users at MINIMAL cost? If they did, how come you can buy macOS software without giving Apple a 30% cut?
"Those users are Apple's users, not yours". I prefer to think of it this way: my iPhone is mine, not Apple's, and I should have a say if Apple gets a 30% cut on all software I purchase.
Now, I'm the first person on the world to be against absolutely any kind of government intervention, but I'll be secretly smiling on the inside the day the US government tells Apple to open up the iOS ecosystem. And, trust me, they will.
Also Epic Games has a monopoly on Epic Games Store.
when we discussed the landmark AT&T case that defined monopoly.
How does a monopoly exist...
If Epic Games chooses to decide which platform to develop on?
How does a monopoly exist...
When customers have a choice of which type of phone to purchase??
It’s NOT a monopoly, just because this CEO says it is.
Has his decision to develop for this platform been bad for Epic?
If it has, maybe he should develop Epic Games for another platform?
And what the hell do you mean by "open up"?
Multiple appstores?
Who manages and curates them?
Does anything go? Porn, spam, etc?
And what percentage of consumers do you think will WANT to use these alternate appstores?
What percentage of developers do you think would actually get success from these alternate stores with a tiny userbase of user engagement?
How the hell is this even a benefit to consumers?
The very fucking reason the iPhone and the appstore became such a success is because of the trust it built up. Privacy, security, stability, etc. "opening up" provides zero benefit to 99.99% of consumers, while opening the doors for so much shit that can harm most consumers.
First if each developer absorbed the overhead of setting up their own store it would cost at least as much if not more. Second if they went with another company to provide the storefront service, the cost would be roughly the same. Lastly if by some miracle Apple or someone else offered a digital storefront for free with no % cut for the cost, the developers would simply pocket the difference. Most developers work on thin margins and an extra 30% would be better plowed back into the business rather than dropping prices for likely no increase in sales.
The 30% would NEVER go back to the customers.
You are wrong here. User / customers are shared between Apple and the developer. What Apple has in their App Store is hard work from developers too, doesn't matter if it's inside the Apple ecosystem. Maybe it's an Apple's device, but it's the developer app.
If you think iPhone depend greatly on your app why don't put your money where your mouth is? Pull your apps away from iPhone and see if users flock away, or you'll just leave space for other devs to fill.
I never asked Apple to host and manage the apps -- this is exactly like paying the mob for protection. Let developers do that and I just "sideload" these apps. Of course if a developer wants the convenience of having the app store for marketing. etc. and is willing to pay Apple a 30% cut, more power to them.
What I mean by "open up"? Same thing you do with macOS. Go to the developer's website, click Download, the app installs. The current app store can coexist with this -- you know, exactly as it is on macOS today.
Zero benefit to 99.99% of consumers? Pulling numbers out of your ass much?