Apple Tweaks New EU App Store Business Terms After Developer Feedback

[MacRumors]

With the launch of iOS 17.4, Apple's app ecosystem changes in the European Union have gone into effect. Apple today said that it made some last minute updates to its terms of service after receiving feedback from developers.

To distribute apps through an app marketplace, with a reduced fee to Apple, or with an alternative payment option, developers have to opt in to new business terms that accept the Core Technology Fee and other new pricing mandates. Apple did not initially provide a way for developers to try the new system and then opt back out if it does not work out, but now there is a one-time term swap option available in some circumstances.

Apple says that developers have a one-time option to terminate the new rule addendum [PDF] and swap back to Apple's standard business terms, though there is a catch. Developers who want to change back cannot have distributed an app through an alternative app marketplace or have used an alternative payment processing method.

You may terminate this Addendum without also terminating the Developer Agreement one time, provided You have never had an Application be an Alternative App Marketplace (EU), be distributed through an Alternative App Marketplace (EU), use Linking Out, or use Alternative Payment Processing.

Opt-out will be available for developers who decided to continue to distribute their apps through the App Store while adopting the Core Technology Fee and reduced commission option. The CTF is .50 euros per download after 1 million downloads, and the commission is 13 percent for small business owners and 20 percent for installs over 1 million (this includes the App Store payment processing fee).

Developers who want to create an alternative app marketplace can now do so without a stand-by letter of credit for €1,000,000, which would restrict marketplace creation to large companies. Developers who have been a member of good standing in the Apple Developer Program for two continuous years or more and have an app that had more than one million first annual installs in iOS in the EU in the prior calendar year can create a marketplace without the proof of funds.

There is also no longer a corporate entity requirement when signing up for new terms, so a large business can sign up at the developer account level rather than having to have each controlling membership approve the swap to the updated business terms.

With iOS 17.4 released, we should soon be seeing the first alternative app marketplaces launch. Developers are now free to adopt the new business terms, distribute their apps outside of the App Store, and use third-party payments in their apps. Note that all of these changes are limited to developers and users in the European Union.

Article Link: Apple Tweaks New EU App Store Business Terms After Developer Feedback

 

[vertsix]

How unnecessarily complicated and petty. This isn't a thing on macOS! Or Windows. Or Linux. Or Android.

Can you imagine the fallout if Microsoft went a similar route when they unveiled the Microsoft Store on Windows?

 

[coffeemilktea]

I can't help but think that if the Chinese government had made a similar demand as the EU did, Apple would have implemented a much easier-to-use system with no Core Technology Fee, if only because ol' Tim is so quick to appease them. 🤔

But since it's the EU, Apple went with this "solution" instead. 🤪

 

[Jamie0003]

*Everyone suddenly dies of malware*

I look forward to finally being able to make iOS do useful, actual desktop computer level stuff.

….when this is finally possible in the UK, and on the iPad. oh well one day

 

[Lyrics23]

Hard to see this being found to be in compliance.

The "Core Technology Fee" and deliberately worse terms on the App Store for those choosing to also make their apps available on other app stores is extremely anti-competitive, and an obvious attempt to discourage developers from making their apps available on alternative stores. Not by competing by having the better store themselves, but by abusing their market power to set punishing terms for anyone daring to try another option.

Exactly the sort of behaviour the DMA seeks to prevent.

 

[turbineseaplane]

They actually listened to developers?

It’s not even April 1st yet

 

[turbineseaplane]

Someone posted here that it’s like a quarter of their revenue

Sounds “worth the trouble” to me

 

[jdavid_rp]

So, as a small dev, should I accept the new terms? I mean, it’s not like I’m gonna reach 1M downloads anytime soon 😂

 

[GeneralChang]

Well... improvement, however small, is still improvement? I guess?

 

[iOS Geek]

How unnecessarily complicated and petty. This isn't a thing on macOS! Or Windows. Or Linux. Or Android.

Can you imagine the fallout if Microsoft went a similar route when they unveiled the Microsoft Store on Windows?

Serves them right. Consider it a lesson in "be careful what you wish for".

 

[erikkfi]

More bogus terms the EU should immediately strike down with the force of a thousand suns.

 

[XXPP]

How unnecessarily complicated and petty. This isn't a thing on macOS! Or Windows. Or Linux. Or Android.

Can you imagine the fallout if Microsoft went a similar route when they unveiled the Microsoft Store on Windows?

XBOX.

 

[XXPP]

EU is only 8% revenue.

 

[MilaM]

What will be the consequences of non-compliance?

Fines: of up to 10% of the company’s total worldwide annual turnover, or up to 20% in the event of repeated infringements

Periodic penalty payments: of up to 5% of the average daily turnover

Tim Cook decided to atone for past tax dodging. Maybe he's a decent person after all.

 

[jdavid_rp]

Serves them right. Consider it a lesson in "be careful what you wish for".

Well, i don’t get the lesson. It’s an opt in thing. If you’re happy and you know it just don’t change to the new terms.

 

[XXPP]

No, thanks. No reason for alternate shops.

 

[sw1tcher]

Someone posted here that it’s like a quarter of their revenue

Sounds “worth the trouble” to me

If you're referring to the EU's $2 billion fine, it's actually less than 1/10th of Apple's quarterly European revenue.

For Apple's 4th quarter of 2023, Europe revenue was $22.463 Billion.

For all of fiscal 2023, Europe revenue was $94.294 billion

Europe is Apple's 2nd largest market. It accounts for around 25 percent of Apple's revenue.

 

[mvwoensel]

EU is only 8% revenue.

That's only about App Store revenue, not about all the other (direct and indirect) revenue from the EU.

 

[contacos]

Another fine is just waiting for them

 

[klasma]

The "Core Technology Fee" and deliberately worse terms on the App Store for those choosing to also make their apps available on other app stores is extremely anti-competitive, and an obvious attempt to discourage developers from making their apps available on alternative stores.

It also makes it impossible to publish an app for free as a hobbyist on an alternative app store if millions may find the app useful.

 

[mvwoensel]

No, thanks. No reason for alternate shops.

It would be more accurate to say that you have no clue why Apple's behavior is harmful, why competition is necessary, and why users would want to install apps from other stores than the App Store on devices that they own.

 

[User 6502]

Serves them right. Consider it a lesson in "be careful what you wish for".

It just anticipates further and harsher rules as Apple is complying maliciously. It won’t do them any good, just make things even worse for them.

 

[spazzcat]

It also makes it impossible to publish an app for free as a hobbyist on an alternative app store that millions may find useful.

If you find your app is being download by millions of people are you are not making money you kind of have failed.

 

[klasma]

Here is an interesting read, by the way: https://www.baldurbjarnason.com/2024/facing-reality-in-the-eu-and-tech/

 

[iOS Geek]

It also makes it impossible to publish an app for free as a hobbyist on an alternative app store that millions may find useful.

Then they can direct their anger at the EU for meddling and forcing changes. Those hobbyists were better off before than they are now.