Epic Games CEO Tim Sweeney Calls Apple's App Store a 'Disservice to Developers'

[MacRumors]

Epic Games CEO Tim Sweeney has called Apple's App Store, which has helped app makers earn over $260 billion since its launch, a "disservice to developers" that forces them to treat their apps as "sub-par."

Sweeney made the comments in an exclusive interview with the Financial Times, where he repeated Epic Games' previous talking points about Apple and how it is "anti-competitive" and "monopolistic." Sweeney said that Apple has "won fairly" in persuading customers to buy its hardware products but claims that forcing customers to use the App Store is unfair.

The problem here is a classic monopoly tie. You start with hardware. Apple make smartphones and they profit from their smartphones — and they deserve to. But then they force all buyers of their smartphones to use their app store exclusively for obtaining digital content. They prevent all other app stores from competing with them on hardware that's owned by a billion end users. That's the first tie and that completely obstructs all competition and market forces that would shape better app stores and better deals for consumers.

According to Sweeney, Apple uses its fair advantage in hardware to "gain an unfair advantage over competitors and other markets. And that breaks all the competitive dynamics that kept the tech industry healthy in the past."

Sweeney criticized the App Store as a platform itself, saying that despite Apple's attempt to market it as a service, it's actually a "disservice to developers." "The app store is not a service. The app store is a disservice to developers. The app store forces developers to treat their software in a sub-par way to give customers a sub-par experience to charge uncompetitive handling and processing fees to inflate the price of digital goods," the CEO of Epic Games said.

Apple has said that the App Store since its launch has helped developers earn over $260 billion and has fostered an iOS app economy that has created over 2.2 million jobs in the U.S. alone.

Epic Games‌ has been embroiled in a massive lawsuit against Apple, concerning the ‌App Store‌, that started in 2020 and is now entering its second year. The suit and its history may be confusing for some, but we have all the details in our guide.

Article Link: Epic Games CEO Tim Sweeney Calls Apple's App Store a 'Disservice to Developers'

 

[MayaUser]

As a developer, i must thanks Apple that App store exists in the first place
The hate for success that a lot of people shows is sad

 

[sudo-sandwich]

It is.

 

[randomgeeza]

This Sweeney guy should wind his neck in...

 

[Velli]

Translation: Apple’s app store is a disservice to Tom Sweeney.

There are sooo many stories of developers making a living off app store apps that would simply not have seen the light of day without the app store. 70% of something is more than 100% of nothing.

 

[Mikey44]

In the beginning, I think it was a huge advantage. I would argue that it’s still a huge advantage, as it’s a centralized ‘listing’ of all the available programs for the iPhone and iPad. It allows developers to reach customers (and vice versa) in a way that hadn’t really been done before.

While I think there may possibly be some valid points to this argument, many of the things he has said previously are so polarizing or egregiously incorrect that I’m less likely to take the criticism that he’s leveling at Apple seriously.

 

[Sebosz]

Okay, don’t use it then, Tim.

 

[leman]

You know, one could try to find merit in Sweeney's words if he himself was not deeply involved in an anti-consumer business of bribing game devs to prevent their titles from appearing on competitor stores. It's jus business as usual.

The biggest advantage of the App Store is that it offers equal opportunity and low cost of access to developers. It's a solidary model where the successful few pay for the platform used for everyone, and this promotes innovation and benefits the small developer. I am worried that the recent legal initiatives aimed to reduce Apple's position as a gatekeeper will also harm this model and give even more privilege to already privileged. But we will see.

On a more serious note, App Store has to evolve and improve. The most concerning recent development is a switch for subscription-based service for many apps, which harms the consumer but has been strongly encouraged by Apple in how they promote apps on the store.

 

[iAFC]

You don’t simply buy Apple’s hardware; you buy an iPhone because of iOS and its ecosystem. If you don’t care for it, there are plenty of Android phones that offer good hardware.

 

[ersan191]

Translation: Apple’s app store is a disservice to Tom Sweeney.

There are sooo many stories of developers making a living off app store apps that would simply not have seen the light of day without the app store. 70% of something is more than 100% of nothing.

85% if your revenue is under $1 million, which is actually pretty reasonable. Especially on really small $0.99 or $1.99 charges. You'd be paying 28-54% to PayPal for the same privilege.

 

[Miha_v]

As a developer, i must thanks Apple that App store exists in the first place
The hate for success that a lot of people shows is sad

I'm in App development business too, agree. iPhone + Appstore have given opportunity to so many developers and artists around the globe, can only be thankful for that.

I can be critical of Apple about different things, but regarding AppStore, I'm glad this "walled garden" exists; I gladly pay a bit more to have a store, where apps have to meet required standards and not every crap under the sun is available for download (possibly, with viruses and worms).

 

[djcerla]

Go home, Tim, you’re drunk.

 

[KENPHOTO]

As a developer, i must thanks Apple that App store exists in the first place
The hate for success that a lot of people shows is sad

Agreed, without the App Store, I would't have started an app development company.

 

[KENPHOTO]

I'm in App development business too, agree. iPhone + Appstore have given opportunity to so many developers and artists around the globe, can only be thankful for that.

I can be critical of Apple about different things, but regarding AppStore, I'm glad this "walled garden" exists; I gladly pay a bit more to have a store, where apps have to meet required standards and not every crap under the sun is available for download (possibly, with viruses and worms).

I run an app development company and completely agree. It is funny how it only seems to be the companies that make the most from the App Store that seem to have a problem with the App Store. I know a lot of small developers and none that I know have any issues with the Apple Walled Garden.

 

[yabeweb]

So much of a disservice that he is kicing to be back in.

 

[Michael Scrip]

85% if your revenue is under $1 million, which is actually pretty reasonable. Especially on really small $0.99 or $1.99 charges. You'd be paying 28-54% to PayPal for the same privilege.

You raise a good point about PayPal and other payment processors.

Most credit card processors charge 2.9%... plus 30 cents per transaction. <--- People tend to forget about that last part.

So on lower priced apps... that's a big chunk of your revenue going towards fees.

Also... if people are so upset about Apple or Google taking 15% or 30% of your revenue... why haven't people raised up against Youtube for taking 45% of ad sales?

With Apple and Google... you get to keep 70% or 85%

But on Youtube you only get to keep 55%

?

 

[Michael Scrip]

So much of a disservice that he is kicing to be back in.

Yep.

Remember when Epic was making $1,000,000 per day on iOS and Android?

Pepperidge Farm remembers...

I'm pretty sure Tim Sweeney wasn't crying when he was cashing all those checks from Apple and Google...

 

[tucupeis]

I'm in App development business too, agree. iPhone + Appstore have given opportunity to so many developers and artists around the globe, can only be thankful for that.

I can be critical of Apple about different things, but regarding AppStore, I'm glad this "walled garden" exists; I gladly pay a bit more to have a store, where apps have to meet required standards and not every crap under the sun is available for download (possibly, with viruses and worms).

being a walled garden also prevents piracy.. which in turn increase app sales and more revenue for developers

 

[44267547]

I gotta hand it to Epic/Tim Sweeney, the amount of energy and resources they’ve invested into battling Apple through the court system, money spent on attorneys and litigation is mind boggling. It’s a losing battle that just won’t turn in their favor, even if they have a valid point about Apple’s App Store.

 

[alexe]

And he's right.

 

[alexe]

Translation: Apple’s app store is a disservice to Tom Sweeney.

There are sooo many stories of developers making a living off app store apps that would simply not have seen the light of day without the app store. 70% of something is more than 100% of nothing.

The argument that the App Store has helped a lot of developers and the argument that Apple's cut is to high are not mutually exclusive.

Once a certain fraction of all software globally is sold over your platform and you reach an overwhelming market power (a point that Apple and Google have passed a long time ago), you have to accept the responsibility that comes with it. You're not just responsible to your shareholders. You don't get to keep 30% of every transaction ever made just because you own the platform.

Before the App Store, taking 30% of anything as a digital platform was unthinkable. Imagine if Microsoft had done the same with Windows. Imagine if VISA and MasterCard took 30% of every transaction just because they provide the platform. Everything would be a lot more expensive for consumers only for a handful of corporations to get even richer.

It's just greedy, plain and simple.

I really don't understand why people are defending Apple so fervidly on this topic. It's really not good for anyone that Apple takes such a large cut (same goes for Google, etc. of course). It's not good for developers, it's not good for you as the consumer. It's only good for Apple.

All of you people always complain about Apple's prices for their devices being too high (Studio Display, Airpods Max, etc.), but at the same time you're all going head over heels to defend Apple's taking 30% of every transaction.

 

[Leon Ze Professional]

Tim Sweeney is still salty! Get over it, you lost!

 

[bviktor]

Luckily the app store is for the customers, not for the developers.

 

[Wildkraut]

No worry Tim Sweeney, that monopoly will come to an end soon, at least in the EU. ?

 

[skottichan]

The argument that the App Store has helped a lot of developers and the argument that Apple's cut is to high are not mutually exclusive.

I find this weird, as most brick & mortar stores take a 15-45% cut, per item. Sure Epic takes what 15%? But Steam takes 30%, Sony, Microsoft and Nintendo do 30+% on their consoles. Google does the 15%/30% like Apple.

So how is Apple's so egregious?