Apple Working on Solution for EU Core Technology Fee Possibly Bankrupting Apps That Go Unexpectedly Viral

[jarman92]

Isn't this fee for apps that are distributed outside of Apple's app store?

No, the CTF applies to any developer who accepts the new, post-DMA terms. So a developer can (1) stay on the old terms and will be required to stay in the App Store (no CTF); (2) accept the new terms and stay on the App Store voluntarily (and pay CTF); or (3) accept the new terms and distribute outside the App Store (and pay CTF).

But if Apple allowed developers to accept the new terms and pay nothing for distribution outside the App Store, everyone and their mother would do so and iOS would be a hot mess.

 

[siddavis]

So you’re saying iPhone is a game console? OK then commission should only apply to games.

No, those are platforms. iPhone/iOS is a platform. You can do more than play games on those, no?

 

[Mrkevinfinnerty]

Don’t want to pay our usual 15-30% commission? Then pay the Core Technology fee.
You gunna pay us one way or another

spoken like a true racketeer.

 

[jakey rolling]

They could‘ve also gone the Microsoft route, pulling a Visual Studio per seat licensing system for enterprise but they chose to only use IAP monetization to cover their bases.

Considering the vast majority of small developers get Visual Studio and a whole plethora of SDK's and development tools for free - yes, that would be a better route.

VS Enterprise is a lot more than just an OS SDK.

 

[sw1tcher]

Not sure where you're quoting from, but it is abundantly clear that the annual developer fee provides access to such resources but does not cover the cost to Apple of providing those resources. $99/year is a pittance and serves only to prevent spam and abuse of the system.

I got it straight from Apple: https://developer.apple.com/programs/

Join the Apple Developer Program to reach customers around the world on the App Store for iPhone, iPad, Mac, Apple Watch, and Apple TV. Membership includes all the tools, resources, and support you need to develop and distribute apps, including access to beta software, app services, testing tools, app analytics, and more.


That developer fee covers the cost of everything developers need to develop and distribute their app(s).

Enrollment - Membership - Account - Help - Apple Developer

developer.apple.com

By enrolling in the Apple Developer Program, individuals and organizations receive everything they need to develop apps for distribution. Members can distribute apps on the App Store for iPhone, iPad, Mac, Apple Watch, Apple TV, and iMessage. They can also distribute software outside of the Mac App Store, as well as offer custom apps to specific businesses and proprietary apps to their employees on Apple Business Manager.

As already explained extensively, here and elsewhere, the CTF covers Apple's decade-plus of work on the iPhone/App Store, Xcode, APIs and SDKs, developer sessions, documentation, regulatory compliance, marketing...

That is a load of B.S.

If developers give their app away for free on their alternative app store, there's a Core Tech Fee and an annual developer fee.

But if developers give their app away for free on Apple's App Store, there's no Core Tech Fee; They just pay Apple the annual developer fee and nothing else.

So how then is Apple being compensated (as you claim) for Apple's decade-plus of work on the iPhone/App Store, Xcode, APIs and SDKs, developer sessions, documentation, regulatory compliance, marketing...


In the former instance where the app is distributed through an alternative app store, the annual developer fee is not enough, hence the Core Tech Fee.

But in the latter instance where the app is distributed through Apple's App Store, the annual developer fee alone is suddenly enough?

You cannot have both be true.

 

[siddavis]

How come they seem to be fine providing those tools without additional fees on the Mac, and have always done so? How come Android is fine without requiring fees for sideloading?

Dunno, but why not stay and play in those spaces if that's what you like?

 

[contacos]

Apple is waiting for the EU to tell them what to do

 

[Abazigal]

Cool, so Apple will just go back to being subjective with who gets things for discount/free, while others that don't have a cute upbringing story will be punished by fees?

My head heads

No different from how the DMA targets US tech companies almost exclusively while conveniently excluding their own local business.

 

[xiJulian_]

No, it's not. Apple is not required to give a free all access pass to their platform. It costs money to develop a platform and SDKs.

you already pay for that when you buy a mac, an iphone, and the developer license

 

[siddavis]

Nintendo, Sony, and Microsoft shouldn't be able to exact a share in revenue of games distributed outside of their app stores either.

You mean like when they get a cut of games bought at Walmart, Target, Best Buy, and on and on?

 

[spazzcat]

Gee...forcing companies to change everything to suit a ridiculous group of jealous companies and misinformed politicians isn't working out great. Imagine that.

Yep, once the government gets involved in something it never gets easier or cheaper. Regulations have their place, but they always make things harder and more expensive. And your guarantee that the consumer is most likely going to pay the price.

 

[AlexESP]

That doesn't address why the two should be treated differently. Why is Apple entitled to a cut of app proceeds from its phone platform vs its desktop computing platform.

Because they consider that’s the product strategy (from economic, functional, etc.) for the phone compared to the Mac.

Where do you draw the line? Sony gets a cut for PS5 games. I can’t even install apps on my fridge, and it’s perfectly capable for that. TVs have pre-installed apps I cannot remove.

All this decisions for each single product have consequences. When you start to think about it, you see how in the end this necessarily ends up in arbitrariness.

 

[vipergts2207]

Well GBA4iOS isn't exactly a good starting point. Apple don't allow emulators as a rule, not because emulators are illegal as such but the ROMS, including the GBA ones, are illegal. So at no point would they be allowed to distribute them anyway so the only distribution market is outside of any legitimate app store, licensed or otherwise. Apple would not offer any signing or distribution even by proxy for this and they probably shouldn't.

But that's beside the point. Pick a better app and there might be a better negotiating position!

Emulators don't come with ROMs, at least not generally, so this would not be a problem for an app store.

 

[jarman92]

That developer fee covers the cost of everything developers need to develop and distribute their app(s).

You keep saying this but repeatedly highlighting things that clearly do not support it. The fee includes access to resources, it does not cover the cost of providing those resources. It's like a Costco membership—you pay a nominal fee to get access to the warehouse but that fee doesn't cover the cost of everything inside.

If developers give their app away for free on their alternative app store, there's a Core Tech Fee.

But if developers give their app away for free on Apple's App Store, there's no Core Tech Fee.

Wrong. Developers can accept the new terms and the CTF will apply both inside and outside the App Store.

 

[siddavis]

spoken like a true racketeer.

OK, now do corporate taxes.

 

[siddavis]

Yep, once the government gets involved in something it never gets easier or cheaper. Regulations have their place, but they always make things harder and more expensive. And your guarantee that the consumer is most likely going to pay the price.

But, but, but... think of the kids!

 

[AlexESP]

How come they seem to be fine providing those tools without additional fees on the Mac, and have always done so? How come Android is fine without requiring fees for sideloading?

We can discuss whether some products are doing fine without sideloading (or any other feature).

The problem here is that since some people (the EU) consider that something is doing good because/despite of X, they force everybody else to do X.

Discussing about whether something is doing fine is acceptable, what is not is forcing everybody else to follow that path.

 

[turbineseaplane]

I think the CTF is Apple trying disincentivize developers from leaving the App Store. We’ll see how long it survives.

I hope the EU makes it clear that they need to stop trying to use their power in this way

Apple and their overzealous use of their market position and Power is the entire problem here

 

[jakey rolling]

That doesn't address why the two should be treated differently. Why is Apple entitled to a cut of app proceeds from its phone platform vs its desktop computing platform.

Of course, the real answer to that question is "Apple is not Microsoft and Mac OS is not Windows - Apple doesn't have the market share in PCs to bully developers in the same way."

 

[9059737]

Apple is not required to give a free all access pass to their platform. It costs money to develop a platform and SDKs.

Yeah because it's not like Apple already makes tens of billions in profit from iPhones, billions more from App Store commissions, billions more from App Store ads, plus all the money from the Developer Program. Apple really needs to get that 50 cent install fee, otherwise they might go bankrupt.

Seriously, Apple keeps angering more and more developers and regulators by increasingly behaving like some entitled mobster overlord. They say that they love developers and comply with laws, but they're behaving so much worse than Microsoft two decades ago, and the outcome for Apple will also be so much worse if they don't change.

 

[siddavis]

That doesn't address why the two should be treated differently. Why is Apple entitled to a cut of app proceeds from its phone platform vs its desktop computing platform.

Why SHOULDN'T they be able to invoke the business model of their choosing? I have plenty of gripes with Apple and the product I am ultimately served with after purchase. But I have a choice, and so do you and all the developers. Exercise it if necessary.

 

[sw1tcher]

Wrong. Developers can accept the new terms and the CTF will apply both inside and outside the App Store.

Only if a developer accepts the new terms.

But if they stick to the old terms and continue to give away their app for fee on Apple's App Store, there will be no CTF.

Apple's EU Core Technology Fee Could Bankrupt Freemium App Developers

App developers in the European Union who choose to opt in to Apple's new business terms must pay an €0.50 "Core Technology Fee" or CTF...

www.macrumors.com

Free and freemium app developers can, however, choose to stick with Apple's current App Store business terms instead of opting for the new terms. In that situation, nothing would change, and app developers would continue to pay a 15 to 30 percent commission to Apple.


So again I ask you, how is Apple being compensated for "Apple's decade-plus of work on the iPhone/App Store, Xcode, APIs and SDKs, developer sessions, documentation, regulatory compliance, marketing..." if a developer sticks to the old terms and gives an app away for free? Is the annual developer fee enough under the old terms?

 

[spazzcat]

Yeah because it's not like Apple already makes tens of billions in profit from iPhones, billions more from App Store commissions, billions more from App Store ads, plus all the money from the Developer Program. Apple really needs to get that 50 cent install fee, otherwise they might go bankrupt.

Seriously, Apple keeps angering more and more developers and regulators by increasingly behaving like some entitled mobster overlord. They say that they love developers and comply with laws, but they're behaving so much worse than Microsoft two decades ago, and the outcome for Apple will also be so much worse if they don't change.

So they just be forced to give away everything now because they are successful, not isn't how business works.

 

[siddavis]

I hope the EU makes it clear that they need to stop trying to use their power in this way

Apple and their overzealous use of their market position and Power is the entire problem here

EU and their overzealous use of monopoly of Power is the entire problem here. (had to fix that)

 

[bradman83]

Why SHOULDN'T they be able to invoke the business model of their choosing? I have plenty of gripes with Apple and the product I am ultimately served with after purchase. But I have a choice, and so do you and all the developers. Exercise it if necessary.

Because by creating an app store they created a market, and markets are subject to regulation. Especially since, in certain regions, iOS has a dominant share of the mobile and tablet market.