Would you like to receive notifications on latest updates of the following headlines?

Apple Seeks Solution For Core Technology Fee Impacting Viral Apps

POSTED ON March 19, 2024 •   Uncategorized      BY Samuel O . Adeniyi
  • Apple is developing a fix for the Core Technology Fee (CTF) to avoid financially harming developers of free apps that go viral.
  • The CTF, a €0.50 fee per install over 1 million, applies to all apps under Apple's new EU business terms and could leave developers in debt.
  • This change is due to the Digital Markets Act, but Apple is offering more flexibility (like app distribution outside the App Store) with the new terms and is committed to supporting young developers.

In response to developer concerns, Apple is addressing the potential financial burden the Core Technology Fee (CTF) could place on creators of free apps that unexpectedly go viral. 

During a workshop, developer Riley Testut highlighted the issue, citing his experience with the GBA4iOS app exceeding 10 million downloads outside the App Store in 2014.

Under the CTF structure, such success could have resulted in a hefty fee that might have jeopardized his family's finances.

Apple's VP of regulatory law, Kyle Andeers, acknowledged the problem and assured developers of a solution in development.

He emphasized Apple's commitment to fostering innovation and preventing young developers from being discouraged by the CTF. 

The CTF, part of Apple's new EU business terms, charges €0.50 for each first-time install exceeding one million, applicable to both App Store and non-App Store distributed apps.

This raises concerns about developers potentially owing fees without generating revenue, particularly for free or freemium apps.

Andeers explained that the Digital Markets Act necessitated changes to Apple's prior model where developers shouldered risks while Apple only profited alongside them. The CTF now reflects the value Apple offers through its technology, tools, services, distribution, and payment processing.

While acknowledging limited instances of viral apps incurring significant CTF charges, Andeers stressed Apple's commitment to supporting developers, especially individual entrepreneurs, in pursuing innovative app creation. He confirmed ongoing efforts to develop a solution.

Importantly, developers retain the option to use Apple's existing App Store business terms with its 15-30% commission structure.

However, this restricts app distribution outside the App Store and bars the use of third-party payment solutions within it.

Apple's adjustments to its app ecosystem rules in the EU are a result of developer feedback.

These changes include allowing developers to return to the current App Store model after trying the new one and lifting restrictions on alternative app marketplaces. 

Additionally, developers will soon have the option to distribute apps directly from their websites, subject to Apple's requirements. It's crucial to note that these modifications are currently limited to the European Union.

READ ALSO
Eno enhances healthcare with N200m contribution to UUTH
BY Abiodun Saheed Omodara February 16, 2025 0

In an effort to enhance healthcare services, the Governor of Akwa Ibom State, Pastor Umo Eno, has co...

READ ALSO
Ododo Reorganizes the Tourism Board, Kogi Hotels
BY Ebiakuboere England December 3, 2024 0

KOGI- Kogi State Governor Alhaji Ahmed Ododo has appointed former Kogi Hotels and Tourism Board Chai...

READ ALSO
Rivers Varsity Suspends Four Students For Assault
BY Benedicta Bassey June 16, 2024 0

The Rivers State University, Nkpolu-Oroworukwo, Port Harcourt has suspended four of its students con...

READ ALSO
French Embassy Unveils Waste Management Project Worth €753,000 in Varsities
BY Benedicta Bassey June 14, 2024 0

The French Embassy, via the Cooperation and Cultural Department, has launched a plastic waste manage...

READ ALSO
ATBU Enhances Research Capacity For Lecturers
BY Benedicta Bassey June 14, 2024 0

The management of the Abubakar Tafawa Balewa University, Bauchi, has enhanced research capabilities...

READ ALSO
Russia Dismisses Claim of Recruiting Nigerian Students For Ukranian War
BY Benedicta Bassey June 13, 2024 0

The Russian Embassy in Nigeria has debunked the claims of recruiting African students, particularly...

READ ALSO
Soludo Warns Tinubu Against Accepting Unsustainable Minimum Wage
BY Benedicta Bassey June 13, 2024 0

Anambra State Governor Charles Soludo on Thursday warned President Bola Tinubu against approving &ld...

READ ALSO
Obi Cubana Lauds Burna Boy For Settling Patients' Hospital Bills
BY Ebiakuboere England June 12, 2024 0

Award-winning Nigerian music star Damini Ogulu, also known as Burna Boy, has been praised by million...

OUR CHANNELS:

Reinventing Nigeria’s Fiscal Framework: A Call for Unity and Responsibility
BY Abiodun Saheed Omodara July 9, 2025 0

President Bola Tinubu has emphasized his government's dedication to allocating sufficient resources...


CBN Mandates Capital Restoration Plans for Banks: A Step Towards Regulatory Compliance
BY Abiodun Saheed Omodara July 8, 2025 0

The Central Bank of Nigeria has instructed banks to provide a capital restoration plan as part of it...


Nigeria Faces Teacher Shortage: Over 31 Million Learners Rely on Just 915,913 Educators
BY Abiodun Saheed Omodara July 9, 2025 0

According to data from the Universal Basic Education, only 915,913 teachers are available for at lea...


Tinubu Calls for Equitable Global Framework at BRICS Summit
BY Abiodun Saheed Omodara July 8, 2025 0

President Bola Tinubu has advocated for a more equitable global framework regarding climate action,...


Two Men Charged in CBEX Investment Scheme Remain in Custody
BY Abiodun Saheed Omodara July 8, 2025 0

A Federal High Court in Abuja has placed two businessmen, Aweruso Otorudo and Chukwuebuka Ehirim, in...


LASG Takes Action, Dismantled  Illegal Checkpoints Along Badagry Expressway
BY Abiodun Saheed Omodara July 8, 2025 0

LAGOS, Nigeria - The Lagos State government has dismantled illegal checkpoints along the Lagos&ndash...


Natasha's Return Plans on Hold as Senate Awaits Court Judgment Copy
BY Abiodun Saheed Omodara July 8, 2025 0

The suspended Senator representing Kogi Central, Natasha Akpoti-Uduaghan, has declared her intention...


Nigerian States Accumulate N417.7 Billion in Domestic Debt Amid Rising FAAC Revenue
BY Abiodun Saheed Omodara July 8, 2025 0

At least 10 Nigerian states have cumulatively increased their domestic debt by N417.7 billion from t...


Governor Otti Facilitates Release of Inmates After 26 Years
BY Abiodun Saheed Omodara July 8, 2025 0

Governor Alex Otti of Abia State on Saturday welcomed three Nigerians who were released after spendi...


Tinubu Pledges to Eliminate Bureaucratic Hurdles in Agriculture During Bilateral Talks with Brazil
BY Abiodun Saheed Omodara July 8, 2025 0

President Bola Tinubu expressed his commitment on Saturday to his Brazilian counterpart, Luiz Inacio...


More Articles

Load more...

Menu