Tim Sweeney, CEO of Epic Games, the company behind Fortnite and Unreal Engine, recently labeled Apple and Google as “gangster-style businesses” that engage in illicit practices, during a speech at a Y Combinator event. Sweeney emphasized that these tech giants’ actions have a direct impact on his business, as they deter users from installing the Epic Games Store software and hinder the company’s ability to attract developers to its platform.

Epic Games has been a key player in the fight against big tech monopolies in recent years.

The company has taken both Apple and Google to court over their allegedly monopolistic practices regarding their respective app stores. Epic emerged victorious in its case against Google, but not against Apple. However, the court ruling did prompt Apple to revise its App Store rules, allowing developers to link to alternative payment methods. Nonetheless, Epic is still embroiled in a legal battle with Apple, alleging that the company has failed to comply with the court order by only permitting developers to process their own payments with a reduced commission of 3%, which is not a viable option for them.

During his onstage appearance, Sweeney reiterated his criticism of the big tech companies, accusing them of “malicious compliance” with the courts’ decisions.

Sweeney stated, “The unfortunate reality is that Apple and Google are no longer trustworthy, law-abiding companies. They operate in a manner akin to gangster-style businesses, willing to do whatever it takes to achieve their goals. If they believe the fine for an illicit practice will be less than the potential lost revenue, they will continue the practice and pay the fine.”

The gaming executive highlighted the negative impact of the tech companies’ practices on his business, citing examples such as the warning screens displayed to users who attempt to install the Epic Games Store on their Android or iOS devices.

When Android users try to install the Epic Games Store, Google displays a warning that the software is from an “unknown source” and may harm their device. Sweeney referred to this as a “scare screen,” which deters 50-60% of users from completing the installation process. A similar warning is displayed on iOS, resulting in a comparable drop-off rate of 50-60%, according to Sweeney.

Sweeney characterized the use of these warning screens as “textbook self-preferencing,” noting that the companies are able to avoid accountability.

“For big tech companies, crime pays,” he asserted. “We should not expect this to change until regulatory enforcement becomes much more stringent,” he told the audience.

Furthermore, Sweeney explained that the friction and fees associated with third-party app stores on iOS have discouraged major game developers from distributing their games through the Epic Games Store. Instead of the usual 30% fee, Apple charges a reduced fee but imposes a “core technology fee” of 50 cents per install per year for apps with over 1 million downloads.

Sweeney noted, “Unless your app generates enormous revenue per user, any free-to-play game is unlikely to use this option, as it would be too costly. Apple would essentially bankrupt them if they did.”

However, Sweeney did mention that the Epic Games Store on iOS has managed to attract some older games, and the store is set to open up to developer submissions later this year, which he hopes will further expand the catalog on both Android and iOS.