Tim Sweeney Slams Apple and Google as ‘Gangster-Style’ Firms

Epic Games CEO Tim Sweeney leveled harsh criticism against Apple and Google during a Y Combinator event this Wednesday. The executive, whose firm is behind Fortnite and the Unreal Engine, characterized the tech giants as “gangster-style businesses” that prioritize illegal revenue streams over regulatory compliance.

Allegations of Malicious Compliance

Sweeney argued that both companies have abandoned good-faith efforts to follow the law, instead engaging in what he described as “malicious compliance” regarding court mandates. According to the CEO, these corporations conduct a cost-benefit analysis on illegal practices: if the potential profit outweighs the cost of fines, the misconduct continues.

“The sad truth is that Apple and Google are no longer good-faith, law-abiding companies,” Sweeney told the audience. “They’re run, in many ways, as gangster-style businesses that will do anything they think they can get away with.”

The Impact of ‘Scare Screens’

A major point of contention for Epic Games involves the installation process for third-party stores on Android and iOS. Sweeney highlighted how both platforms utilize warnings that deter users from installing the Epic Games Store:

• Android: Google displays warnings about “unknown sources,” suggesting the software could damage the user’s device.
• iOS: Despite new regulations in Europe, Apple shows similar alerts to users attempting to install the Epic Games Store.

Sweeney claims these “scare screens” lead to a 50% to 60% drop-off rate, effectively preventing users from completing the installation. He categorized this tactic as “textbook self-preferencing,” asserting that these companies continue to operate this way because enforcement remains insufficient.

Financial Barriers and App Distribution

Beyond installation hurdles, Sweeney discussed the economic challenges preventing major game developers from utilizing the Epic Games Store on iOS. He pointed to Apple’s “core technology fee”—which charges 50 cents per install annually for apps exceeding 1 million downloads—as a prohibitive cost.

“Unless your app is enormously high grossing per user, any free-to-play game is largely dissuaded from that,” Sweeney explained, noting that the fees could lead to bankruptcy for many developers. “It’s too expensive for them.”

While the legal battle continues—including ongoing disputes regarding Apple’s compliance with court-ordered changes to its payment mechanisms—Sweeney remains focused on expansion. The Epic Games Store is set to open for wider developer submissions later this year, a move the CEO hopes will diversify the catalog on both Android and iOS platforms.