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Steam deck sir/ma'am. Getting the EPIC version to work is still a nighmare and most still cant get it to work.
No more exclusive games to one platform or another. :/ start being harder on the publishers and companies if they refuse to sell all their products
Their regular royalty payments are 12%, but they will reduce it if developers use Unreal Engine. Not sure if they reduce it down to 0%, but it would definitely be less than 12%.
Epic royalty for games using unreal is 5%, this is waived if sold via EGS, but not anywhere else.
Ahh I see you mean. I thought the EGS royalty fee is reduced/waived if developers use Unreal Engine. Turns out to be the other way around (Unreal Engine royalty is waived if the game is sold via EGS). Really aggressive marketing strategy from Epic Games. Get Unreal Engine in addition to an online store for the games to sell at.
Epic is using an asset that has close to monopoly gatekeeper status (Unreal Engine tech) to give their EGS store front an unfair advantage compared to competitors by conditioning the royalty payments for UE on publication through EGS.
This is a direct violation of article 6.12 from that regulation:
as using different tariffs for royalties on the engine depending on whether the user publishes through EGS or not, is in fact discriminatory.
I doubt Epic Games would get in trouble over this. Let’s suppose monopoly regulators ask Epic “if you are happy to waive fees for Unreal Engine games purchased on EGS, why not waive those same fees for Unreal Engine games purchased from Steam as well”. Epic can fight back by saying “if we waive fees for Unreal Engine games purchased from Steam, then we make absolutely zero money from Unreal Engine, therefore we will discontinue the software”.
Think about it: if Epic Games waived fees for Unreal Engine games across all platforms, then Unreal Engine has literally no purpose for existing since it makes zero money. At least if you buy the Unreal Engine game on EGS then they make 12% store royalty money. If that is not considered reasonable, then I don’t know what is. Regulators cannot force Epic to release Unreal Engine for free. There is nothing wrong with making money.
I'd think the practical application of it would be the reverse.
That is: not being allowed to waive royalty fees when publishing through EGS.
Note that the EU commission can designate a company as a gatekeeper even when it does not meet the actual thresholds as defined in article 3.2, provided it does still meet the characteristics as per article 3.1 -- which Epic does.
This prerogative is enshrined in article 3.8 and one of the reasons they can invoke it is when an untertaking features "(f) a conglomerate corporate structure or vertical integration of that undertaking, for instance enabling that undertaking to cross subsidise"
Which is effectively what Epic is doing by waiving royalties on UE offsetting them against the 12% cut for sales through EGS.
Similarly, article 3.8 could be invoked for undertakings that feature "(e) business user or end user lock-in, including switching costs and behavioural bias reducing the ability of business users and end users to switch or multi-home"
Which certainly applies to a digital distribution platform that aims to have users centralize their access and consumption of content via a curated library.
( For reference: https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32022R1925&from=EN#d1e1494-1-1 )
Anyway; back on topic:
the reason KH hasn't come to Steam yet is probably that it's still under exclusivity with Epic.
Disney and SE aren't stupid. The franchise prints money and as soon as it's liberated from EGS and arrives on Steam, that means yet another rush of essentially free cash - considering all the development and bugfixing on the PC ports is already done, and probably paid for up front through Epic's exclusivity deal. That's the reason companies go for that deal.
(And is another reason Epic could be classified as a gatekeeper under art 3.8f of the DMA; because EGS afaik doesn't break even and all the exclusivity deals are financed from earnings from UE licenses; Fortnite micro-pay; and investment money...)
And just confirming this now: Yes Epic Games is a private company, so their like Valve so basically non-US laws don't apply to them unless they allow it, if they dont then the EU has only themselves to blame for not reading the fine print.
Hell in the User agreement it literally states in sections 10, 11 for Steam...and...
https://store.epicgames.com/en-US/eula
Epic has theirs also in section 11: You agree that this Agreement will be deemed to have been made and executed in the State of North Carolina, U.S.A., and any dispute will be resolved in accordance with the laws of North Carolina, excluding that body of law related to choice of laws, and of the United States of America. Any action or proceeding brought to enforce the terms of this Agreement or to adjudicate any dispute must be brought in the Superior Court of Wake County, State of North Carolina or the United States District Court for the Eastern District of North Carolina. You agree to the exclusive jurisdiction and venue of these courts. You waive any claim of inconvenient forum and any right to a jury trial. The Convention on Contracts for the International Sale of Goods will not apply. Any law or regulation which provides that the language of a contract shall be construed against the drafter will not apply to this Agreement.