Apple is streamlining the way it charges a new fee iOS developers in the European Union are reshaping their approach to the bloc’s Digital Markets Act (DMA): developers of free apps can avoid the fee entirely under changes announced on Thursday that take effect today, while other developers benefit from below one At certain sales thresholds, it will take longer before you have to pay the fee to Apple.
The so-called “core technology fee” remains optional for iOS developers in the region as Apple continues to offer its standard terms and conditions, but those who want to take advantage of new permissions that the DMA has required of Apple – such as allowing sideloading apps ; third party app stores; and support for alternative payment technologies than Apple’s – must agree to the terms and conditions that include the CTF (as Apple calls it).
The fee remains under scrutiny in the region, where the commission, which enforces the DMA at Apple and other gatekeepers – and also opened its first investigations into Apple in March – is actively investigating whether the mechanism allows the iPhone maker to do its bidding To avoid opening obligations and to expose the App Store to competition, for example from third-party app stores. However, so far the EU has not told Apple that it cannot charge a fee.
Apple announced that it is making changes to the CTF in response to feedback from thousands of developers who have expressed concern about the risks of fees penalizing those who offer free/non-commercial apps or small developers who end up with a surprise success suffer. An app that goes viral and exceeds the 1 million initial installs per year threshold that Apple had already set before introducing the fee could leave the tech giant owing a lot of money – since the fee is €0.50 for each first annual install per year thereafter is 1M threshold.
In information provided to developers, Apple said that optimizing no-fee-for-free apps is intended to “give students, hobbyists, and other non-commercial developers the opportunity to create a popular app without paying the CTF.” Developers must certify their non-commercial status to Apple annually to remain eligible for the fee waiver. (Note: Government agencies and accredited educational institutions were already exempt from paying the CTF provided they meet Apple’s criteria.)
Apple said the second change announced was aimed at giving small developers who achieve a successful app more time to scale their business. Developers who generate less than 10 million euros in annual global revenue will receive “free access to the CTF” for three years, as the developer materials state.
“If, within that three-year period, a small developer that has not previously achieved more than one million initial installs per year exceeds the threshold for the first time, it will not pay the CTF, even if it continues to achieve more than one million initial installs per year during that period “Wrote Apple. “If a small developer achieves global revenue between 10 and 50 million euros within the three-year launch period, it will start paying the CTF after one million initial annual installations, up to a cap of 1 million euros per year.”
Earlier this week, the EU announced that Apple’s tablet operating system platform iPadOS would also soon fall under the DMA. This gives the company six months to ensure that it adheres to the same rules that already apply to iOS, the App Store and Apple’s Safari browser.
Apple confirmed today that all of the DMA-related changes it made for iOS will also apply to iPadOS later this fall. (After the DMA, it has six months to meet the iPadOS compliance deadline.)
“Developers may choose to adopt or remain with the alternative terms and conditions for apps in the EU that include these additional features and options on iPadOS.” Apple‘s existing conditions,” it wrote in a blog post.
“Once these changes are publicly available to users in the EU, the CTF will also apply to iPadOS apps downloaded via the App Store, web distribution and/or alternative marketplaces,” it also said, adding: “Users who Install the same app.” On both iOS and iPadOS, only an initial annual install will be generated for this app over a 12-month period.”