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

[JamesMay82]

very unfair! unless they are trying to push some app developers out of the store.

I find 90% of the App Store to be filled complete crap with lots of poor reviews. I only use apps from mainstream companies. My daughter uses all the free game apps and they are just awful I find. we have Apple Arcade but weirdly sh e still sticks to free ones.. I'm convinced it's subliminal messaging! ha

 

[AppliedMicro]

Still amazes me that there are people out there that genuinely expect Apple to run an online digital marketplace, provide cloud storage and worldwide digital distribution of iOS applications as well as toolchains, IDE's, etc, all for nothing. Apple spent billions building this ecosystem.

They’re raking in billions in device sales - and profit from that alone.
And availability of apps is what make or break a smartphone platform/OS.

As others have said, producing a freemium app that 2 million people use should provide adequate revenue streams for you to pay something back to Apple for the excellent service they are providing.

Selling phones for hundreds of Euros in price and margin each should provide adequate revenue for Apple to provide the developer tools and app notarisation for free - and not force developers to sell through them.

Apple make the phones and are well compensated for it.
Third-party developers make apps and should be compensated for it.

No need for double-dipping.
When Epic are selling a game or Spotify are providing audio stream, Apple should have no business in charging a 30% on that.

 

[Shirasaki]

If I understand the new rules correctly, I have a different view. If you stay in the old system nothing changes. If you use an alternate App Store, you pay €0.50 once, killing off a number off free(mium) apps from outside the Apple ecosystem. Paid apps from outside the Apple Store using their own billing system now only have to pay this €0.50 instead of the 15-30%, and -nothing- for in app purchases. The fools that sign up for using an alternate App Store and their own billing, but stay in the Apple ecosystem will pay through their noses…

Thats 0.5 euro PER INSTALL, not just “once only”, unless said App somehow removes the ability for Apple to track how many installs happen, but then those devs risk breaching TOS, thus being banned from releasing apps in iOS altogether.

This new rule exist because Apple refuses to truly let go off the hooks of their iPhone and iPad user base (why should they?), thus still want to maintain a level of data collection, followed by basic tracking (they don’t need personal info but still tracks something).

 

[Onelifenofear]

It’s the EU we are talking about. They are used to getting everything for “free”. Heck, people all over the world are flocking to Europe to enjoy getting everything for ”free”.

Well we pay for everything in Taxes... but it goes to pay for Medical care for free, rather than the whole military $500 for a toilet seat thing - or the vast amount of money that goes back to 3rd party government vendors who weirdly enough are part owned by Governor, senators etc* ... So it's swings and roundabouts. P

*This also happens in the UK/Europe, but to a far lesser extent.

 

[hans1972]

Apple is just a criminal organisation. How can they demand a fee for apps that are not even bought at their own app store? Also what gives them the right to monitor which apps someone installs from third party app stores? They somehow need to collect data to see how often an app is installed. That is private information that Apple does not have the right to access.

Apple can create any fee they want as long as the DMA doesn't forbids it.

The right to monitor all third-party app stores and individual apps, comes from the DMA itself.

 

[Shirasaki]

Apple would just withdraw Apple Music from Android, which is what all app developers on iOS should have done if they're weren't satisfied with the deal they got with Apple.

But they don’t, regardless of their own reasons. To this I blame devs for not voting with their own Wallet.

 

[hans1972]

Just imagine the uproar if Microsoft suddenly decided that it imposes a 50 Cent per year fee for all software that runs on a Windows device. That would be ridiculous and on iPhones it is no less ridiculous.

It should be legal and I wish Microsoft would do it.

 

[hans1972]

Not risky at all. The "concept" is whatever the EU defines it as. It's their borders and they have the right to create laws. Right now, EU has designated Apple, Amazon, Alphabet, etc. as gatekeepers and stated clearly what their obligations are.

There is no EU constitution that says "government may never interfere with businesses."

Yes, but there is also copyright laws which applies to software and the EU countries are also bound by copyright conventions like the Bern convention.

 

[AirpodsNow]

If you’re app is free, why the hell would you list it in a side loaded store knowing the fees.

This is a non issue.

Well not really. I can imagine some reasons why Apple does this

• An alternative store would be more popular if it’s also has freemium apps so people go there more often also for those.
• One can start with freemium first and then ask payments later if more popular. However if they start with Apple it’s hard to shift stores. So developer need to take the risks
• Alternative stores might have different app policies, so Apple might refuse where others dont
• Freemiums like Netflix type, can start boycotting Apple Store all together just to pressure Apple

So in some ways I can see this as a deterrent for preventing some major freemium apps disappearing from the App Store, because their user base will download it anywhere they tell them. I would assume if the alternative store becomes popular some big ones could be incentivised (this App Store pays developer money) to become its exclusives…. And I guess this measure of 50c prevents it or at least makes it expensive to do so.

 

[Onelifenofear]

So basically, the way Apple is getting around EU rules/law is to design a piece of code that complies with the EU rulings but then make it so that piece of code is chargeable and then change the app store T&C's telling app developers if they want to use that piece of code they have to pay for it.

Sorry Apple but the word starting with SK and ending in M comes to mind. Such a despicable way to behave towards app developers and the EU.

No.. it's not a "piece of code" though is it... it's 15 years of iOS development and iPhone development AND the 1.45 Billion active iPhone users as a potential customer.

The Original post here completely fails to mention that if the developer wants to NOT use a third party store. they can just carry on selling via App Store and they don't ge this charge.

"Apple is sharing new business terms available for developers’ apps in the European Union. Developers can choose to adopt these new business terms, or stay on Apple’s existing terms. For existing developers who want nothing to change for them — from how the App Store works currently and in the rest of the world — no action is needed, and they can continue to distribute their apps only on the App Store and use its private and secure In-App Purchase system. Developers must adopt the new business terms for EU apps to use the new capabilities for alternative distribution or alternative payment processing. For apps in the EU member states where the DMA is taking effect, the following options will be available:"

Update on apps distributed in the European Union - Support - Apple Developer

developer.apple.com

 

[Onelifenofear]

Scummiest company in the universe.

Or you could actually read the proper article. Developers don't HAVE to switch.

 

[Onelifenofear]

I have a free app. Until the dust settles I just removed it from all of Europe. It's just a game and its not super popular or anything so I dont think I would have to worry but I can't afford to pay anything on an app that doesn't make money so for now I've taken it off.

Pleas read the actual article... not the click bait original post. Nothing changes UNLESS you want to sell stuff through a third party Appstore. Stay with Apple App Store and it stays the same.

"Apple is sharing new business terms available for developers’ apps in the European Union. Developers can choose to adopt these new business terms, or stay on Apple’s existing terms. For existing developers who want nothing to change for them — from how the App Store works currently and in the rest of the world — no action is needed, and they can continue to distribute their apps only on the App Store and use its private and secure In-App Purchase system."

Update on apps distributed in the European Union - Support - Apple Developer

developer.apple.com

 

[Onelifenofear]

From Apple's developer website:

How does Apple know how many installs my apps are getting?​

Apple provides secure installation APIs that can be called by the App Store or alternative app marketplaces to request the installation of iOS apps from within their app. This API, along with a signal when the installation is complete, enables Apple to accurately count how many times an app is installed.




What I find even more interesting is that apparently Apple's applying the first annual install Core Technology Fee only to iPhones (strictly speaking anything that runs iOS, so at this time iPhones). I was fully expecting this to apply to iPads, too, for example. From their developer website:

Are app installs on iPadOS, macOS, tvOS, visionOS, or watchOS counted?​

No. Only installs on iOS by Apple accounts in the EU may be counted as first annual installs.


By my reading that means if the new business terms apply to you and you release for example an iPadOS or visionOS -only app in the EU you're not charged the CTF. What's more, apparently installing iPhone (iOS) apps on for example iPads (iPadOS) doesn't count either:

View attachment 2341313

A more conspiracy-theory -minded person than I might think Apple plans to roll all of their OSes into one - iOS - some time in the (potentially far) future.

...but I suspect the truth is actually far less interesting than that.

The EU directive ONLY targets phones... Which in part goes to explain this EU Group's complete lack of knowledge about anything technical... the fact they also tried to demand that iMessage should be allowed to be used by anyone also shows how stupid they are about coding, security, storage etc etc.

 

[Onelifenofear]

Oh they will.

Sigh... Read the actual apple article first paragraph...

Update on apps distributed in the European Union - Support - Apple Developer

developer.apple.com

 

[ChromeCloud]

I'm genuinely happy that Apple found a way to adhere to the legislations without giving away free lunches to Meta, Microsoft and Google.

The last thing I want on my phone is to have to install 5 different alternative app stores and manage my subscriptions in 20 different ways and have those huge corporations get even more of my money.

 

[laptech]

No.. it's not a "piece of code" though is it... it's 15 years of iOS development and iPhone development AND the 1.45 Billion active iPhone users as a potential customer.

The Original post here completely fails to mention that if the developer wants to NOT use a third party store. they can just carry on selling via App Store and they don't ge this charge.

......

Of course it is a 'bit of code' because if it was hard coded into the main body of iOS, everyone would have to pay for it's use. The fact only those wanting to use the app in the EU has to pay proves it is a separate bit of code that app developers have to use in their app. It gives Apple a very good excuse to charge for use of the code because if it was hard coded into iOS Apple would be accused of 'double dipping', charging ALL app developers a yearly fee and then charging ALL app developers for the new bit of code whether they use it or not. Having it as a separate bit of code means Apple can see who is using function calls to call the code and those who are not.

As for your second paragraph, you have missed the point completely. Apple does not allow app developers to put in links in their app's that inform users there are other payment options outside of the app store or to provide links informing users that prices are cheaper outside of the app store, thereby preventing app developers from using such links if they want to stay using the app store but if they want to use such links in their apps they will have to use a 3rd party app store which will incur further costs. Very coinvent you failed to mention that.

 

[hans1972]

I reckon the argument would be that if Apple wants to charge money for its tools, it should do so consistently across both its own and independent app stores.

My understanding is that the EU core technology fee will also apply to the App Store, so no discrimination.

Update: It only applies to the App Store if you accept the new agreement.

 

[d5aqoëp]

“Malicious Compliance” at it’s finest. EU needs to B**ch slap Apple again. This is the same “Malicious Compliance” Apple did with US’s Right to Repair legislation by sending $1000 of bulky equipments to your home to change a measly battery.

Why can’t sane people at Macrumors see through this?

 

[Onelifenofear]

Posts like this are so weird

Apple isn’t some sports team, they don’t care about you at all.

This thread is full of comments defending this and I find that quite sad because this is basically Microsoft 2000s behaviour.

They won’t win this but the aim is to keep delaying it and create fear for customers.

Gibberish. Why should developers get all this for free?
16 years of platform building,
thousands of API's
load of hardware revisions
oh and 1.46 Billion active iPhone users as potential clients.

Epic's and the EU's take is they want to open a market stall in Apples Mall, grab all the customers that come in but not pay for ANY utilities, heating, light power or maintenance costs at all.

 

[hans1972]

So basically, the way Apple is getting around EU rules/law is to design a piece of code that complies with the EU rulings but then make it so that piece of code is chargeable and then change the app store T&C's telling app developers if they want to use that piece of code they have to pay for it.

Sorry Apple but the word starting with SK and ending in M comes to mind. Such a despicable way to behave towards app developers and the EU.

The EU Core technology fee is independent of any code. It's a business arrangement which the developers agrees to.

 

[Onelifenofear]

“Malicious Compliance” at it’s finest. EU meeds to B**ch slap Apple again. This is the same “Malicious Compliance” Apple did with US’s Right to Repair legislation by sending $1000 of bulky equipments to your home to change a measly battery.

Why can’t sane people at Macrumors see through this?

Why do you want 1.46 Billion potential customers and 15 years of software development for free?

 

[Abazigal]

But they don’t, regardless of their own reasons. To this I blame devs for not voting with their own Wallet.

It reminds me of the other thread where the apparent lack of YouTube and Netflix support for the Vision Pro is supposed to represent some sort of developer strike, as though these two companies somehow get to speak for the entire developer community. This suggests some sort of developer silo where only commentary from a select group gets heard.

There are a lot of reasons as to why a developer may decide not to support the Vision Pro on launch day. They may simply not have the time or resources to support an additional platform (especially one with a low install base), or simply have different priorities at the moment. At the same time, they may not want to deal with support complaints of iPad apps not running properly on the vision pro.

What this just goes to show is that the iOS app developer community is not a homogenous organisation. There are different viewpoints, perspectives, and experiences represented. The idea that developers are up in arms over Apple’s App Store policy is not representative of 35+ million developers. Instead, it likely represents only a small faction, especially long-term developers with a past going back to the web/Mac/PC days, who hold certain views regarding how apps should be distributed.

It's ridiculous to expect 35 million developers to dance to your tune just because you want to prove a point to Apple.

 

[MilaM]

Apple's revenue has been stagnant for a long time. They badly need to extract more revenue from the services category. Expect incresasing fees left and right in the coming years. This is also why they fight so hard against the DMA.

 

[Zest28]

Apple's revenue has been stagnant for a long time. They badly need to extract more revenue from the services category. Expect incresasing fees left and right in the coming years. This is also why they fight so hard against the DMA.

Microsoft has done the same approach. They basically have dropped Windows and don‘t even care if people pirate Windows anymore.

Microsoft uses Windows for selling their services.

 

[reyesmac]

Apple ruined free once already. Now free is ads and delays and in app purchases and subscriptions. If they could make an exception for actually free apps that ask nothing from the user and only charge them if they ever do that would be great. But they wont do the great thing. So we will just get more apps we pay for that have ads in them.