Along with sideloading, alternative app marketplaces and discounted app store tariffs within the EU, Apple is also introducing a controversial new fee as part of its adjustments to the Digital Markets Act. The so-called Core Technology Fee (CTF) is intended to compensate for Apple's platform development services, patents and free developer tools in the future – and is to be paid by all those who no longer want to use the old App Store distribution (with 15 or 30 percent commission).
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The problem: The CTF also applies to freeware apps. You only have to pay for one million installations (or first updates/redownloads) per year. But sudden hits could drive small developers into ruin. Apple also seems to be aware of this. This was the topic of a workshop the company held for European developers, reports developer and Apple leak expert Steve Troughton-Smith on his Mastodon channel (transcript of the entire session).
From 0 to 10 million downloads
Kyle Andeer, the vice president of Apple's legal department responsible for regulatory law, gave his assessment in response to a question from Altstore founder and developer Riley Testut (known for the GBA4iOS emulator). Testut wanted to know what would happen if a young developer suddenly found himself in the millions by the CTF due to a major app success. He himself achieved more than ten million downloads with GBA4iOS, which would have meant almost 5 million euros.
Andeer said Apple currently has no solution to the problem. “I completely understand that.” The company looked at the data and “didn't find many examples of a viral app or an app that suddenly became a hit and caused huge costs.” But ultimately he doesn't care what this data says. Apple doesn't want people to be afraid. “I have four children myself who play around with this stuff. I don't have five million euros to pay. So it's something we have to get done and it's something we're working on.” He ended his remarks with “Stay tuned”.
Integrated business model dismantled
Andeer also explained that Apple is in the process of dismantling its integrated model that it has used for 15 years. “For 15 years, we monetized everything through the commission. It covered everything from technology to distribution to payment processing and the beauty of it was that it allowed developers to take risks. Apple only got money if the developer got money .” This has been an “incredible driver of innovation over the last 15 years”.
Apple itself knows children between the ages of 8 and teenagers who appear in the App Store with great apps and “incredible success stories”. In terms of CTF and business model, the conditions of the DMA had to change. “To your point – what are the implications for a dreamer or a (young person) who is just starting out? It could also be a child, an adult or a grandparent. We want to continue to encourage these types of developers,” said Andeer.
(bsc)