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Apple adds carve-out to EU core technology fees after criticism from developers

TechBrunchBy TechBrunchMay 2, 20244 Mins Read
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Apple is tweaking how it applies new fees applicable to iOS developers in the European Union as it continues to set its approach to the European Union's Digital Markets Act (DMA): Changes will allow free apps to Developers will be able to avoid fees entirely, the company announced Thursday, effective today, but other developers who earn below a certain revenue threshold will have to pay fees to Apple. It will take even more time.

As Apple continues to offer standard terms and conditions, so-called “core technology fees” remain opted-in for iOS developers in the region, but the new rights that the DMA requires Apple to provide (side Developers who wish to request permission (e.g. loading permissions) to the app. Third-party app stores. You must agree to a set of business terms, including support for alternative payment technologies that are not proprietary to Apple – CTF (as Apple calls it).

The European Commission, which enforces the DMA against Apple and other gatekeepers and launched its first investigation involving Apple in March, is actively investigating whether the mechanism allows iPhone makers to avoid opening obligations. Fees continue to be scrutinized in the regions currently being investigated. Elevate the App Store to compete with third-party app stores and more. But so far, the EU has not told Apple it cannot charge fees.

Apple introduced the CTF in response to feedback from thousands of developers concerned that fees risk penalizing developers who offer free/non-commercial apps and smaller developers who would be caught off guard. announced that it would change. Apps that spread quickly and exceed the initial 1 million annual installs threshold that Apple had already set before charging began could end up owing the tech giant significant amounts of money. there is. 1M threshold.

In information provided to developers, Apple said the app-free adjustment provides “an opportunity for students, hobbyists, and other non-profit developers to create popular apps without paying CTF.” He said the purpose was to give. Developers must annually certify their nonprofit status to Apple to remain eligible for fee waivers. (Note: Government agencies and accredited educational institutions are already exempt from paying CTF as long as they meet Apple's standards.)

Apple said the second announced change is aimed at giving small developers with hit apps more time to grow their business. As stated in the developer documentation, any developer with a worldwide annual business revenue of less than 10 million euros will be given his 3-year “free migration to CTF”.

“If within this three-year period, a small developer who has never previously exceeded 1 million initial annual installs exceeds the threshold for the first time, even if the initial annual installs continue to exceed 1 million. “No CTF will be paid, even if it does.” Apple wrote. “If a small developer grows from 10 million euros to 50 million euros in worldwide revenue within his 3-year startup period, after the first 1 million installs per year, the upper limit of 1 million He starts paying CTF up to euros per year.

Earlier this week, the EU announced that Apple's tablet OS platform, iPadOS, would also soon be subject to the DMA, ensuring that it complies with the same rules that already apply to iOS, the App Store, and Apple's Safari browser. The company was given six months to do so.

Apple today confirmed that all DMA-related changes applied to iOS will also be applied to iPadOS later this fall. (DMA gives you six months to comply with iPadOS.)

“Developers can choose to adopt the EU's Alternative Business Terms for Apps, which includes these additional features and options for iPadOS, or stay with Apple's existing terms,” ​​it said in a blog post.

“Once these changes are rolled out to users in the EU, the CTF will also apply to iPadOS apps downloaded through the App Store, web distributions, and/or alternative marketplaces,” it said, adding: He added: For both iOS and iPadOS, if he installs an app within 12 months, the first yearly install of that app will only be generated once. ”



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