Epic Games CEO Tim Sweeney Labels Apple and Google as “Gangster-Style Companies”
Tim Sweeney, the CEO of Epic Games, has labeled Apple and Google as “gangster-style companies,” allegedly following illegal practices, according to remarks made at a Y Combinator event on Wednesday.
He claimed that both companies employ strategies that harm developers and prevent users from installing alternative stores like Epic Games.
Sweeney’s statement is part of a long-standing dispute that has placed Epic Games at the center of a larger struggle against alleged illegal practices in the tech industry.
Pointing to the historical record of fines and legal challenges against Apple and Google, he asserted that they are willing to continue engaging in illegal behavior if it means their profits will exceed any potential fines.
He told the audience, “They are running in many ways because gangster-style companies will do anything they think they can get away with. If they believe that the fines will be cheaper than the lost revenue from illegal practices, they will always continue those practices and pay the fines.”
Epic Games is known for its popular title Fortnite, but it also creates the Unreal Engine and provides tools for other developers. The company sued Apple and Google a few years ago, accusing them of monopolistic practices in their app stores.
While Epic won its case against Google, it lost to Apple. Nonetheless, the court ordered Apple to change its app store rules to allow developers to link to other purchasing mechanisms.
However, Epic remains at odds with Apple, believing that Apple’s compliance is too limited, as developers only see a 3% reduction in commission, rendering the transition away from Apple’s payment methods virtually useless.
Sweeney has decried these actions as “malicious compliance,” arguing that the lack of meaningful enforcement allows Apple and Google to continue harming competition. He stated, “Crime pays for big tech companies,” adding that it will persist unless authorities become more stringent in their oversight.
These policies significantly impact Epic’s business. On Android, users attempting to install the Epic Games store outside of the Play Store receive warning messages.
Epic Games CEO Says Intimidation Screens Deter Users
According to Sweeney, the “intimidation screens” cause 50% to 60% of users to abandon the process, undermining Epic’s ability to attract new customers. In Europe, similar warnings appear under new regulations allowing the Epic Games store on iOS, with drop-off rates on Android matching those seen in the EU.
Sweeney described these warnings as “textbook self-serving,” a term suggesting that Google and Apple favor their own channels by making alternatives appear risky. He believes this is a powerful way to prevent users from venturing outside the official app stores.
He also emphasized the costs involved in distributing apps through the Epic Games store on iOS. Apple charges a core technology fee of 50 cents annually, rather than the usual 30% cut, on downloads exceeding one million cents.
Sweeney stated that under this structure, free-to-play developers would lose too much revenue. He explained, “Unless your app has a very high gross margin per user, any free game will be largely discouraged.” “If that happens, Apple would go bankrupt.”
Nevertheless, Epic has managed to bring some back-end recording games to its iOS store. Sweeney still hopes to submit the store to developers later this year, which would expand the catalog on both iOS and Android. However, he believes that the influence of Apple and Google will be a hurdle until there is more vigorous competition or stricter enforcement of existing rules.
