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- 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.
