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Tim Sweeney criticizes Apple and Google for "scare screens" stifling competition, detailing app store monopoly disputes, Epic's lawsuits, and Digital Markets Act (DMA) implications in UK.
On April 2, 2025, Tim Sweeney, CEO of Epic Games, delivered a scathing critique of Apple and Google during a Y Combinator event, accusing the tech giants of operating as "gangster-style businesses" through illegal monopolistic practices in their app stores.
Sweeney outlined how these practices harm Epic Games and the broader developer ecosystem, while detailing the company’s legal battles, current challenges, and future plans. Below is a comprehensive overview of his remarks and their implications.
At the Y Combinator event, Sweeney accused Apple and Google of abandoning good-faith business practices in favor of "malicious compliance," where they opt to pay fines rather than end illegal activities. A key issue he raised was the use of "scare screens" on both iOS and Android, which warn users that the Epic Games Store comes from "unknown sources" and may harm their devices. These warnings lead to 50-60% of users abandoning the installation process, significantly hindering Epic’s growth.
Sweeney described this as a "textbook case of self-preferencing," where Apple and Google prioritize their own app stores over competitors. In Europe, the Digital Markets Act (DMA) has forced Apple to allow the Epic Games Store on iOS, but the company continues to display warnings, maintaining high abandonment rates.
Sweeney remarked, "Crime pays for big tech companies," urging stronger regulatory enforcement.
|
Platform
|
Installation Abandonment Rate |
Cause |
|
Android |
50-60% |
"Scare screens" for "unknown sources" |
|
iOS (Europe) |
50-60% |
Apple warnings despite DMA compliance |
Epic Games has been at the forefront of challenging app store monopolies, taking both Apple and Google to court:
Epic won its lawsuit in 2023, with the court ruling that Google’s Play Store practices were unfair. This victory threatens the app store industry’s nearly $200 billion business model, forcing Google to open up to more competition.
More Details 👉 US Court Orders Google to Open Its Google Play Store to Competitors
Epic lost its case, but the court mandated that Apple allow developers to link to alternative payment methods. However, Apple’s response has been lackluster—reducing commissions by just 3% and introducing a "core technology fee" of $0.50 per install per year for apps exceeding 1 million downloads.
More Details 👉 Supreme Court Declines to Hear Apple-Epic Games Case
Sweeney argues this fee disproportionately harms free-to-play game developers and claims Apple has not fully complied with the ruling, keeping the dispute alive.
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Apple and Google’s policies have taken a toll on the Epic Games Store:
To mitigate this, Epic is temporarily covering Apple’s fees for developers in its free games program, though Sweeney called this "devastating" long-term without regulatory relief. Europe remains the only region offering full competition, while the U.S. market stays restrictive.
|
Key Impact Metrics |
Data |
Notes |
|
PC Users (End 2024) |
295 million |
Exceeded target, but mobile growth lags |
|
Abandonment Rate |
50-60% |
Due to "scare screens" on Android and iOS |
|
Developer Participation |
Low |
High fees deter major developers |
Despite these challenges, Epic Games is pushing forward:
Sweeney emphasized that the DMA provides a blueprint for competition, but global enforcement lags. Support from companies like Spotify, Match Group, and media outlets such as The New York Times bolsters Epic’s efforts to challenge Apple’s dominance.
👇 News about third-party game stores:
>>> Skich Launches Gamers-First iOS Store in EU Post-DMA
>>> Aptoide to Launch First Alternative iOS Gaming App Store in EU on Thursday
Sweeney’s remarks underscore the ongoing struggle between app store giants and competitors like Epic Games. Apple’s high fees and "scare screens" continue to stifle developer participation, while Google faces pressure to adapt post-lawsuit.
The EU’s DMA offers hope for a more competitive landscape, but without stronger global enforcement, progress will remain gradual. Epic’s expansion into mobile and free games signals resilience, yet its success hinges on regulatory breakthroughs.
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