Apple Developing Strategy to Address EU Core Technology Fee Impact on Apps Going Viral
Apple recently made headlines with the announcement of a 0.50 euro Core Technology Fee that apps distributed using the new EU App Store business terms must pay. The fee has raised concerns among developers about the potential financial burden, especially if a free app unexpectedly goes viral.
In response to these concerns, Apple VP Kyle Andeers recently met with developers to discuss their issues during a workshop on Apple’s Digital Markets Act compliance. During the workshop, iOS developer Riley Testut shared his experience of having a free app downloaded over 10 million times, potentially resulting in millions in fees under the new rules.
Acknowledging the need to find a solution that does not stifle innovation or scare young app makers and their parents, Apple assured developers that they are working on addressing the concerns and will provide an update in the future.
The 0.50 euro Core Technology Fee applies to all apps in the EU and must be paid for every “first” app install over one million installs. This fee makes it risky for developers to create free or freemium apps outside of the App Store that may go viral. Developers have the option to continue using Apple’s current App Store business terms or adopt the new terms to access new features.
Apple has made changes to app ecosystem rules based on developer feedback in the EU, including allowing developers to opt back in to current App Store rules after trying out new rules and lifting restrictions on alternative app marketplaces.
Overall, Apple is working on finding a solution to address concerns over the Core Technology Fee and support innovation and young app makers in the EU. Stay tuned for updates from Apple on potential changes to the fee structure.
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