Epic CEO Criticises Apple’s New Fees in Japan
Epic Games, the company behind the hugely popular Fortnite, has made it clear that it will not be launching the game on iOS devices in Japan anytime soon. This decision comes in response to Apple’s recent introduction of what Epic’s CEO Tim Sweeney describes as “junk fees” imposed on third-party app stores and in-app payments in the Japanese market. Despite recent legal victories against Apple, Epic remains firmly opposed to the tech giant’s approach to app distribution and payment processing.
Apple recently allowed third-party app stores to operate in Japan, complying with the country’s Smartphone Act. However, rather than fostering fair competition, Apple has introduced a 21% fee on third-party in-app payments and a 15% fee on purchases made via the web, according to Sweeney. On top of these, Apple has added a new 5% fee on all revenue generated by apps distributed through competing stores, alongside plans to monitor all transactions using a mandatory reporting API.
Legal Battles and Ongoing Disputes
Epic’s CEO argues that these fees are an egregious overreach by Apple, interfering with distribution and payments that Apple has no direct involvement in. He highlights that US courts have already found similar practices illegal, a ruling that Apple has appealed but which has set important legal precedents. In April 2025, Judge Yvonne Gonzalez Rogers ruled Apple guilty of willfully violating an injunction that required it to allow external payment methods and remove anti-steering measures, barring Apple from collecting commissions on purchases made outside the App Store.
The United States Court of Appeals for the Ninth Circuit later partially reversed the penalty, stating that the commission ban was too broad, but affirmed the core of the injunction. Apple has been ordered to negotiate a fair commission rate with Epic for external payments, or else the matter will be decided by a court. Until then, Apple cannot collect commissions on payments made outside its App Store.
Wider Implications and Industry Context
This legal struggle between Epic and Apple is influencing app store policies globally. For example, in Australia, Epic has sought court permission to allow its apps to be sideloaded onto Apple devices without incurring commissions. Despite these ongoing battles, Tim Sweeney remains uncompromising, recently stating that he cannot conceive of any justification for Apple to take a percentage of developer revenue in these circumstances.
The dispute highlights the broader tension between platform owners and developers over control, fees, and fair competition in app marketplaces. Apple’s strategy to impose fees on third-party stores in Japan may be seen as an attempt to maintain revenue streams despite regulatory pressures, but it has clearly not satisfied Epic or other developers pushing for more open ecosystems.
What to Watch Next
The situation remains fluid, with further negotiations and court rulings expected to shape the future of app distribution and payment processing on iOS devices. Fortnite’s absence from iOS in Japan underscores the ongoing friction between Epic and Apple, and the outcome of these disputes will be closely watched by developers and consumers alike worldwide.
Source: https://t.co/FNgLCWhyNN