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Apple Working on Solution for EU Core Technology Fee Possibly Bankrupting Apps That Go Unexpectedly Viral
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Literally everyone who isn’t being deliberately obtuse for purposes of this argument understands that the $99/year is a nominal fee to prevent spam and abuse of developer tools. Not only is it manifestly, absurdly low, it also hasn’t changed in 15 years. And it would be absurdly regressive if it were an actual fee—Meta, with a market cap > $1 trillion and $134 billion/year in revenue, pays the same pittance as a developer with no apps and no revenue.
And as I’ve already pointed out to someone else here (who immediately stopped responding), the screenshots you yourself posted reference “gain[ing] access to” resources at least 3 separate times.
But putting aside all that, you’d be OK with Apple getting rid of all current fees and only charging a yearly fee of, say, 15% of the developer’s annual revenue for developer access?
Well you can read an in depth analysis by the EU on it and compare it to apple’s claim and provided data they posted in 2020
Impact assessment of the Digital Markets Act
I mean it wasn't until very recently that Apple even allowed developers to choose a number between 0 and £1 though...
Google’s fees are nearly identical to Apple’s. The only difference is Apple charges 30% for subs < 1 year old (for developers not in the Small Business Program). Apple also doesn’t charge fees for free apps.
Attachments
Apple also has another market, the ROW. They can sell their phones and apps there and pull out from the EU.
It was just an example. Do we have any evidence of app prices going down when developers received a bigger slice of the pie?
Maybe the EU will just break up Appstore from Apple so that everyone has a level playing field. It will become one of the appstores then. Let Apple charge apps on (formerly Apple's) Appstore the same CTF. You know that it is a distinct possibility under DMA.
And would would own this App Store seeing how Apple is US company and they can't split up a US company. So Apple US would own Apple EU and Apple App Store?
so apple EU will have no tax income due to needing to pay apple US the core tech free for downloads.
Yes, I would be fine with that for anyone using apples services etc
It’s not about being obtuse, but interpreting the text as written and not what Apple intended as that’s not what’s in the text provided. And it’s absolutely not self evident of what you say considering that’s what Apple grants MacOS developers who are members of the developers program.
As well as they make no reference that the commission is used for anything.
In a U.S. legal framework, the literal interpretation of A commission is a fee paid to an agent as compensation for executing a transaction. It is calculated either as a percentage of the transaction value or as a flat fee.
And the literal interpretation of “gaining access to” in the context of contracts involving APIs, SDKs, and other resources generally implies the right to enter and use a specific set of software tools and data. This can include the ability to:
- Connect to and use APIs (Application Programming Interfaces) to interact with other software or services.
- Utilize SDKs (Software Development Kits) which may contain libraries, tools, and documentation to develop applications.
- Access resources such as data, code libraries, or computing power.
It’s abundantly clear that the annual developer fee provides access to such resources for the developers, AND use of apples resources as listed on their numerous pages.
Still haven’t heard from a single EU developer that plans on signing up for the new EU dev agreement 😉
Anyone? Anyone?
Looks like a real winner, guys!
Anyone? Anyone?
Looks like a real winner, guys!
Could it be that all of you screaming for the DMA are just enjoying for the power trip?
It’s nice to feel like a winner 🥇
But reality is just a wee bit different when the actual developers don’t agree 🤷🏻♂️
It’s nice to feel like a winner 🥇
But reality is just a wee bit different when the actual developers don’t agree 🤷🏻♂️
It’s really quite simple. There are many iPhone and iPad users who want to access freeware. There are many developers who want to create freeware. Apple should not get between these two groups of people and prevent the ability of these groups to connect. This is where true innovation is happening.
That's sort of saying the same thing, just differently
If there were more than two players, the gate keeping effect would be diminished to the point that these actions would be unlikely (or less likely and with less teeth at least)
Put another way -- if there were several large players in this space, Apple wouldn't be able to get away with the gatekeeping anyhow
Exactly. But the EU have done nothing to foster that sort of competition and resolve the underlying issue. A terrible missed opportunity.
Breaking news: They can.
"The Commission will monitor the effective implementation of and compliance with these obligations. In case a gatekeeper does not comply with the obligations laid down by the DMA, the Commission can impose fines up to 10% of the company's total worldwide turnover, which can go up to 20% in case of repeated infringement. In case of systematic infringements, the Commission is also empowered to adopt additional remedies such as obliging a gatekeeper to sell a business or parts of it or banning the gatekeeper from acquisitions of additional services related to the systemic non-compliance."
Digital Markets Act: Commission designates six gatekeepers
The European Commission has today designated, for the first time, six gatekeepers, under the Digital Markets Act (DMA).
Well that's good, though I suspect most/all developers would lose their collective minds were Apple to ever implement that plan.
Yes, I don't disagree with that. The developer fee certainly provides access to Apple's resources. But it does not cover Apple's costs of providing those resources, which is why Apple charges a commission on App Store sales and/or the Core Technology Fee.
They will be quickly disabusd of the opinion once the Eu starts fining them in the billions and Apple changes the CTF requirements. The major goal of the DMA is the establishment of Alternate appstores. This directly impedes that objective. Due to the CTF, only Apple Appstore can thrive while all others cannot. What will be purpose of the DMA if it is not prevent exactly that?
One way could be to ensure that either the CTF goes or it is applicable to Apple's Appstore also. Remember, there can be no self-preferencing. So, Apple knows it and it will be preparing to change the CTF rules.
The other option is to ensure that Apple sells off the Appstore so that Apple also becomes one of the developers and has no more incentive to self-preference.
Choice is Apple's.
Breaking news: They can.
"The Commission will monitor the effective implementation of and compliance with these obligations. In case a gatekeeper does not comply with the obligations laid down by the DMA, the Commission can impose fines up to 10% of the company's total worldwide turnover, which can go up to 20% in case of repeated infringement. In case of systematic infringements, the Commission is also empowered to adopt additional remedies such as obliging a gatekeeper to sell a business or parts of it or banning the gatekeeper from acquisitions of additional services related to the systemic non-compliance."
Digital Markets Act: Commission designates six gatekeepers
The European Commission has today designated, for the first time, six gatekeepers, under the Digital Markets Act (DMA).ec.europa.eu
That's what the law says, but I shudder to think of the international fiasco and trade war that would result from the EU trying to fine Apple $30 billion+ or forcing it to sell off its EU business.
Are you seriously saying that 15% is the difference between you running your business or not? How on earth did we do it when we paid more to get our software distributed before something like an Apple app store and to a much smaller audience?
It is a small cost to get your product in-front of millions and sort your international tax situation, refunds, etc....
Why should a free app be sold just to pay Apple $$$? I don't get the logic.
I doubt Apple will wait that long. Once they are fined a couple of 2 billion dollar fines, they will come to their senses or the shareholders will fire Tim bringing sanity to the proceedings.