Epic Games, the maker of “Fortnite,” is accusing tech giant Apple (NASDAQ:AAPL) of delaying its attempts to set up a game store on iPhones and iPads in Europe. This is just the latest drama in the ongoing fight over Apple’s control of the iOS ecosystem. Epic says Apple rejected its store submissions twice because the button and label designs looked too much like the App Store’s.
Epic argues it is just using standard terms like “Install” and “In-app purchases,” which are common across different app stores. Epic believes Apple’s rejection is unfair and breaks the Digital Markets Act (DMA). It has taken its complaints to the European Commission. Earlier this year, Apple, pressured by European regulators, allowed Epic to launch its game store on iOS devices in Europe.
However, Epic and Apple have been clashing since 2020 over Apple’s 30% cut on in-app payments, which Epic claims is against U.S. antitrust laws. Although Apple has made some changes to comply with the DMA, like letting other app stores on iPhones, these changes haven’t fully satisfied EU regulators and have led to more scrutiny.
Is Apple a Buy, Sell, or Hold Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 24 Buys, 10 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 18% rally in its share price over the past year, the average AAPL price target of $219.96 per share implies 2.31% downside risk.
