• Tim Sweeney accused Apple and Google of operating as "gangster-style businesses" that continue illegal practices when fines cost less than compliance.
  • Epic Games faces 50-60% user drop-off rates due to warning screens when users attempt to install their store on iOS and Android.
  • Apple's "core technology fee" of 50 cents per install annually has prevented major game developers from joining Epic's iOS store.

Epic Games CEO Tim Sweeney lambasted Apple and Google as "gangster-style businesses" engaged in illegal practices during a Y Combinator event on Wednesday.

The Fortnite creator claimed both tech giants deliberately obstruct competition and only comply with legal rulings when financially expedient.

"The sad truth is that Apple and Google are no longer good-faith, law-abiding companies," Sweeney said. "If they think that the fine is going to be cheaper than the lost revenue from an illegal practice, they always continue the illegal practice and pay the fine."

Sweeney detailed how these tactics directly harm Epic's business. When users attempt to install the Epic Games Store on Android or iOS, they encounter warning screens suggesting the software could be harmful, resulting in 50-60% of users abandoning installation.

Despite Epic's legal victories requiring Apple to allow alternative payment methods, Sweeney condemned Apple's "malicious compliance" by implementing a mere 3% commission reduction while adding a "core technology fee" of 50 cents annually per install for apps exceeding one million downloads.

"Unless your app is enormously high-grossing per user, any free-to-play game is largely dissuaded from that," he explained. "Apple would bankrupt them if they did that."

The ongoing battle has prevented major game developers from distributing through Epic's store on iOS, though Sweeney noted some back-catalog games have joined.

Epic plans to open its store to developer submissions later this year on both platforms.

"Crime pays for big tech companies," Sweeney concluded, calling for "much, much more vigorous" enforcement.

Edited by Annette George