Tim Sweeney has once again seized the opportunity to critique both Apple and Google, this time at a recent Y Combinator event. As the CEO of Epic Games, Sweeney has been vocal about how these tech giants have negatively impacted his software business and have discouraged developers from engaging with their platforms. He didn’t hold back, suggesting the companies operate with ‘gangster-style business’ ethics, adopting practices that are borderline illegal because they can seemingly evade repercussions.
Sweeney highlighted how both Apple and Google are not engaged in fair practices. For those keeping track of the legal battles between Epic Games and Apple, it is evident that relations between the two have been rocky. Sweeney frequently criticizes Apple for what he perceives as stifling competition through their policy of mandating the use of their in-app payment systems, which limits the potential for other companies to earn revenue. He argues that their so-called ‘illegal practices’ will persist unless more rigorous laws are enforced.
He remarked, “The sad truth is that Apple and Google are no longer good-faith, law-abiding companies. They’re run, in many ways, as gangster-style businesses that will do anything they think they can get away with. 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. Crime pays for big tech companies. Obviously, we shouldn’t expect that to change until enforcement becomes much, much more vigorous.”
A significant issue with Apple, according to Sweeney, is the high cost imposed on developers. Any app with over a million downloads is subjected to a payment of 50 cents per installation per year to Apple, which he believes discourages major developers from using the Epic Games Store to distribute their games. These fees, he argues, can be crippling unless a game generates enormous revenue.
As for Google, Sweeney points out that while their approach differs from Apple’s, it still poses challenges. Users receive a warning message saying the Epic Games Store is from an ‘unknown source’ when trying to install it on Android devices, which he claims deters a significant portion of users—around 50-60%—from completing the installation. This warning has become a substantial hurdle, limiting Epic Games’ potential revenue from Android users.
In the face of these obstacles, Sweeney remains cynical that either Apple or Google will voluntarily change their strategies, given the profitability of their current practices.
