Epic Games CEO calls Google and Apple “gangster-style” businesses

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Epic Games CEO Tim Sweeney, the man behind Fortnite and Unreal Engine, recently criticized Apple and Google, calling them “gangster-style businesses” that break the rules to protect their profits. 

Speaking at a Y Combinator event, Sweeney claimed that these tech giants use shady tactics to block competition, making it harder for Epic Games to grow its business. (via: Tech Crunch)

Epic has been fighting these companies in court for years. The company sued both Apple and Google for running monopolies with their app stores. While Epic won against Google, it lost against Apple. 

However, the court did force Apple to allow app developers to direct users to other payment options, meaning they wouldn’t have to rely solely on Apple’s payment system. 

However, Epic argues that Apple found a sneaky way around this ruling: reduce its fees only slightly, making it impractical for developers to switch. Because of this, Epic is still fighting Apple in court.

Sweeney didn’t hold back in his criticism, saying Apple and Google follow court orders only in ways that still benefit them, what he calls “malicious compliance.” 

He accused them of deliberately ignoring laws when they know the punishment is cheaper than the money they’d lose by actually following the rules.

One major way these companies hurt Epic is by scaring people away from installing its apps. 

For example, when users try to install the Epic Games Store on Android, Google pops up a warning saying the software might be unsafe. This scares off 50-60% of people trying to install it. 

Apple does something similar in Europe, where new regulations allow the Epic Games Store, but Apple’s warning messages still drive people away. 

Sweeney sees this as a classic example of “self-preferencing,” meaning Apple and Google favor their own services while discouraging competition.

Another problem is Apple’s high fees. Even though they lowered their usual 30% commission, they now charge developers 50 cents per user per year if an app gets over 1 million downloads. 

This makes it too expensive for most free-to-play games to use Epic’s store.

Do you agree with Tim Sweeney? Do you think Google and Apple deserve more regulations? We want to hear more from you below in the comments, or via our Twitter or Facebook.