What I fail to understand is why it's such a big deal for them to allow that. I mean: would they do that in real life, too? “Only Walmart is allowed in this town”, sounds a little far-fetched, doesn't it? I can't think of any place in the US where only one store is allowed in town. iOS is basically a digital version of a town.
Strong disagreement with this. Cell phones are not towns. That's an oversimplification. They're a product from a company. The internet itself is a space where users interact with each other, so there's some ambiguity on that particular part. But smartphone devices and tablets are clearly not "towns."
The App Store, likewise, is not a "town." It is a service provided by Apple.
This is like saying that the Nintendo Switch is a town. It is not. It is a product sold by a company, with some live services and some offline services.
If you're for the concept that Apple must accept Epic Games's 3rd-party store on their devices, then, from a legal perspective, you'd also logically need to conclude that Nintendo must accept a pornographer's 3rd-party store on the Switch. You could replace "pornagrapher's 3rd-party app" with something either criminal or non-criminal; you could replace it with "Google," "Pokémon game," et cetera.
While you can make the argument that Nintendo markets their devices to both adults and kids (and so does Apple with their various iDevices)... You would need to remain consistent for both the iPhone and Nintendo.
And, obviously, putting a pornography shop on a video game device usually meant for children is a huge problem.
If Apple finds Epic's behavior or app objectionable, they have a right to refuse its existence on their devices—in the same way that Nintendo has a right to refuse a pornographer's 3rd-party store on their Nintendo device.
While I agree that sideloading should be an option for users, and that they should understand the risks of sideloading onto their devices—Epic Games clearly does not have a legal right to dictate what Apple does or doesn't do with their App Store or their devices.
Apple is, effectively, a publisher, in this situation. And publishers have a right to choose which texts (or apps) that they publish or do not publish.
And Apple's objection is Epic trying to avoid fees on an agreement.
Even though Apple is definitely abusing its price charges, and even though sideloading should be legal and optional for its users—Epic does not have a clear and justifiable legal ground to stand on. They want Fortnite to be in the App Store without paying Apple's requested fee.