If Apple's platform doesn't work for their profit margins they are free to sell their software elsewhere, including a plethora of phones from a diverse set of manufacturers. But they don't want to do that because Apple's platform makes them a fuck load of money. They just want more of it.
How about this: Apple can charge Epic the same outrageous* 12% that Epic charges game developers. Do you think that would alleviate Epic's concerns?
> Vertical integration is illegal.
Can you provide a legal document or explicit law that states "vertical integration is illegal"?
* It's outrageous because Epic provides even fewer services (SDKs for example), still requires developer fees $100/submission, and has a much smaller user base. They're also not really doing anything. At least Apple makes the iPhone and improves the capabilities of it each year...