A few months ago, the EU twisted Apple’s arm and forced it to open iOS up to alternate app stores. The company acquiesced but introduced its ludacris Core Technology Fee (CTF). Well, according to a new report, Apple is excluding more developers from the CTF, and this is something that should have been done from the get-go.
If you need a refresher on the topic, the EU forced Apple to allow third-party app stores onto iOS. Until then, the only way to get apps onto your iOS device was through the Apple App Store. Well, the EU said that Apple being the sole provider of iOS apps meant that it was a gatekeeper. So, rather than being fined a ton of money, Apple caved and allowed third-party apps to run on iOS.
However, Apple does not want to go down without a fight. It introduced a few outrageous policies, and one of them was the CTF. Basically, if you have an app on an alternate app store, and it gets more than 1 million downloads, you’d need to pay 50¢ for every download from that point going forward. Obviously, being charged for downloads is not set well without developers. Obviously, people see this as a ploy to keep people from developing for alternate app stores.
Apple is excluding certain developers from the CTF
A new report claims that Apple made some changes to its CTF policy. It excludes certain developers from receiving the fee. However, in order to be on the list, you should not expect to be paid for your app. According to the policy, in order to avoid having to pay the CTF, you cannot monetize your app whatsoever.
This means that you cannot display ads or offer ad purchases. Offering links to buy physical goods is also out of the question. You need to make sure that you are making $0.00 from your app in order to forego the fee.
So, if you want to avoid the fee, the only form of currency you should accept for your app is five-star reviews. In a statement, Apple says, “This condition is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.”
There are other exceptions
If a developer monetizes their app, and they make less than €10 million in global annual business revenue, then they’ll be exempt from the fee for three years. This will give them the opportunity to grow their business before having to commit half of each dollar to Apple.
However, after developers cross this €10 million line before the three years are up, they will be charged the CTF. What’s fortunate is that Apple caps the fees at €1 million a year.
These rules also apply to people developing apps for iPads
Not everyone is happy with this change
Tim Sweeney, Epic Games CEO, has long been an enemy of Apple’s business practices. In a heated X post, he stated that the company is “…still demanding a cut of transactions they have nothing to do with, from apps distributed through channels they have nothing to do with, in violation of EU law. Another rotten, bad faith move.”
Apple is tweaking its anticompetitive “core technology” junk fee – while still demanding a cut of transactions they have nothing to do with, from apps distributed through channels they have nothing to do with, in violation of EU law. Another rotten, bad-faith move. https://t.co/WLpCdULczb
— Tim Sweeney (@TimSweeneyEpic) May 2, 2024
So, it appears that Apple still has a ways to go before its policy gets universal approval.