Julie Clover
Apple today announced changes to the €0.50 Core Technology Fee (CTF) that apps distributed under the EU's new business terms must pay, introducing a solution that will prevent the spread of viral small apps. charged unreasonable fees.
Firstly, independent and small developers who do not receive any income at all will not have to pay CTF. There is no fee for students, hobbyists, and free app developers who distribute free apps and make no money. Developers will be required to declare their non-profit status annually, and to maintain this status, developers must not have any revenue from their apps on or off the App Store.
Secondly, to allay concerns. Because CTF results in outrageous fees for an app that suddenly goes viral, Apple has implemented a three-year incentive process for small developers. The three-year period begins from the moment the developer agrees to the new App Store business conditions, and during this time, if the application goes viral and exceeds the annual threshold of one million installations that triggers the CTF, the CTF will not be charged if the developer earns less than €10 million in global business income, and the commission is reduced thereafter .
- Below €10 million: CTF is not payable over a three-year period.
- Between €10 million and €50 million: CTF must be paid but is limited to €1 million per year over a three-year period.
- Over €50 million: the benefit is no longer available and the full CTF amount must be paid.
- After three years: developers will pay for each first annual installation after initial million first annual installations per year.
Please note that this ramp-up period is only available to small developers who have not previously done so. has surpassed one million first-year installs, and this figure is calculated based on global business revenue, not just the App Store income.
Apple says that 99 percent of developers will not be subject to the CTF to begin with, but the new ramp-up period will continue to ensure that smaller developers with breakthrough success have time to scale. your business before paying a fee.
Back in March, developer Riley Testut spoke with Apple representatives at a Digital Markets Act seminar and asked what would happen if a young developer's app went viral. and unwittingly received millions in royalties. Testut asked this question because when he was a high school student, he released GBA4iOS outside of the App Store. It was suddenly downloaded more than 10 million times, which would have bankrupted it if it had been subject to core technology fees.
In response, Apple Vice President of Regulatory Affairs Kyle Andiers said Apple was working on a solution , because the company is not trying to stifle innovation. Apple believes it will be rare for a free app to go viral and incur exorbitant fees, but the changes will prevent that from happening. The CTF update will also be a welcome change for those who want to release completely free apps outside of the App Store.
CTF only applies to apps that have subscribed to the new App store Conditions for doing business in the European Union. Apps in the EU can now be distributed through alternative app stores and developer websites without relying on the App Store.
Apple has more information about the new changes to CTF in its updated CTF support page.
Apple has more information about the new changes to CTF in its updated CTF support page.
Tags: App Store, European Union[ 116 comments ]
