Apple has reversed its decision to ban Epic Games from launching its own app store on iOS in Europe, following pressure from European Union officials investigating the matter. This move comes just a day after the new Digital Markets Act went into effect in Europe, marking the first major test of the region's new digital competition rules. Epic Games, the maker of "Fortnite," will now be able to bring the popular game back to iPhones in Europe after being unavailable on iOS since 2020 due to a dispute with Apple over developer terms.

The European Commission has requested further information from Apple regarding allegations that it blocked Epic Games from setting up its own app store, potentially violating the EU's new Digital Markets Act. The rules, which aim to prevent big tech companies from monopolizing digital markets, require app stores to allow downloads from third-party sources. Apple's solution to this rule is a system allowing developers to create self-contained app marketplaces within iOS.

Epic Games accused Apple of revoking its developer account due to past criticisms of the tech giant and deliberate violations of Apple's terms to expose anticompetitive behavior. Emails published by Epic showed Apple leaders expecting Epic to breach store terms again, despite Epic's promise to abide by them. Apple initially justified its actions by referencing US court rulings affirming its right to terminate Epic's accounts for any reason. However, Apple has now relented and reinstated Epic's developer account in Europe, signaling a willingness to comply with the Digital Markets Act and allow competition in the app economy.

The European Commission is evaluating whether Apple's actions comply with other EU regulations, including the Digital Services Act, which prohibits tech companies from applying terms and conditions arbitrarily. Epic's attempt to launch its own app store in Europe was seen as a direct challenge to Apple's dominance in the market, leading to a legal battle between the two companies. Despite Apple's initial resistance, the pressure from EU officials has forced the tech giant to allow alternative app stores in Europe, opening up new opportunities for developers and consumers.