Tim Sweeney Critiques Big Tech Companies at Y Combinator Event

Calling Out Apple and Google

Tim Sweeney, the CEO of Epic Games, known for creating Fortnite and providing development tools like Unreal Engine, delivered pointed remarks at a recent Y Combinator event. He labeled Apple and Google as “gangster-style businesses,” accusing them of engaging in illegal practices. Sweeney underscored how the conduct of these tech giants negatively impacts his own company, deterring users from installing the Epic Games Store and hindering efforts to attract developers.

Epic’s Legal Battles Against Monopolies

Epic Games has emerged as a significant player in the ongoing struggle against the monopolistic tendencies of major tech firms. The company has initiated legal actions against both Apple and Google, alleging monopolistic practices within their app ecosystems. While Epic achieved a favorable ruling against Google, the case against Apple was less successful. Nonetheless, the court mandated modifications to Apple’s App Store policies, allowing developers to link to alternative payment systems. Epic continues to contest Apple in court, asserting that the tech giant has not fully complied with this ruling.

The Impact of Scare Tactics on Users

During his talk, Sweeney highlighted the detrimental effects that the practices of these large companies have on his business. For example, when Android users try to install the Epic Games Store, Google displays a warning indicating that the software comes from an “unknown source.” Sweeney described this as a “scare screen,” which often leads 50-60% of users to abandon the installation. A parallel situation exists on iOS, where users in Europe face similar warnings about installing the Epic Games Store, resulting in comparable drop-off rates.

The Issues of Self-Preferencing

Sweeney criticized these warning screens as prime examples of “self-preferencing,” asserting that such tactics allow companies to evade accountability for their unfair practices. He remarked, “Crime pays for big tech companies,” indicating a pressing need for stricter enforcement against these behaviors.

Challenges for Game Developers

Addressing the obstacles posed by Apple, Sweeney noted that high fees associated with third-party app stores on iOS discourage major game developers from distributing their titles through the Epic Games Store. While Apple typically charges a 30% fee, it imposes an additional “core technology fee” for popular apps, which may reach 50 cents per installation annually. This model often proves financially unfeasible for many free-to-play games, potentially driving them away from the market.

Despite these hurdles, the Epic Games Store on iOS has managed to secure some back-catalog games. Looking ahead, Sweeney expressed optimism about the Android platform, which is set to accept developer submissions later this year, potentially expanding the game catalog.