Epic Games CEO Tim Sweeney has launched a scathing attack on Apple and Google, labeling them "gangster-style businesses" that engage in illegal practices to maintain their dominance in the tech industry. Speaking at a Y Combinator event on Wednesday, Sweeney claimed that the companies' practices are hurting his business and preventing developers from using Epic's services.

Sweeney's comments come as no surprise, given Epic Games' history of challenging big tech monopolies. The company has been at the forefront of the fight against Apple and Google's app store practices, having sued both companies for monopolistic behavior. While Epic won its case against Google, it lost to Apple, although the court did order Apple to open up its App Store to more competition.

Despite the court's ruling, Sweeney alleges that Apple has failed to comply, instead offering a 3% reduction in commission to developers who process their own payments. This, he claims, is not enough to make it worthwhile for developers to use alternative payment mechanisms. Sweeney has accused Apple of "malicious compliance" with the court's decision, saying that the company is only making superficial changes to avoid further legal action.

Sweeney's main grievance is the way Apple and Google treat Epic's Games Store software. On Android, Google displays a warning to users who try to install the software, claiming it may harm their device. Sweeney calls this a "scare screen" designed to deter users from installing non-Play Store apps. As a result, 50-60% of users abandon their attempt to install the software. A similar warning is displayed on iOS, leading to a similar drop-off rate.

Sweeney believes this is a clear example of "textbook self-preferencing," where the companies use their dominance to stifle competition. He argues that this behavior is illegal and that the companies are "getting away with it" because they can afford to pay the fines. "Crime pays for big tech companies," Sweeney said, adding that stricter enforcement is needed to change their behavior.

The Fortnite executive also revealed that the friction and fees associated with third-party app stores on iOS have deterred major game developers from distributing their games through the Epic Games Store. Apple's 30% fee, combined with a "core technology fee" of 50 cents per install per year for apps with over 1 million downloads, makes it too expensive for developers to use the platform. Sweeney hopes that the Android version of the Epic Games Store, which will open up to developer submissions later this year, will attract more developers and help to boost the catalog.

Sweeney's comments highlight the ongoing struggle between tech giants and developers, with the former accused of using their dominance to stifle innovation and competition. As the battle against big tech monopolies continues, Sweeney's words serve as a stark reminder of the need for stricter regulation and enforcement to ensure a level playing field for all.