Apple is reviewing its copy of the fees recovered as a result of the implementation of the new commercial terms following the DMA-forced launch of sideloading. Those who earn nothing from their app are exempt, while “small” developers can benefit from a three-year leniency period.
Earlier this year, Apple explained in detail how third-party stores work and in particular the pricing conditions on iOS. We were talking about sideloading, i.e. the installation of applications outside the official store, the Apple Store.
Apple opens its Store, commissions are on everyone’s lips
As we explained at the time, commissions for some developers could literally skyrocket. For example, with one million installs and six million in revenue for an app (a $5.99 subscription, for example), the rate would be $100,000 per month ($1.2 million per year).
At the time, some developers announced their intention not to publish their app in Europe. Andy Yen, founder and CEO of Proton, criticized Apple’s stance: “Apple’s alleged compliance with the DMA is disingenuous. The DMA is supposed to promote competition, but the statements […] show that Apple is fighting tooth and nail to maintain its profits and monopoly with every possible method of manipulation.” Apple, for its part, took the opportunity to chastise the DMA.
A risk for small developers
In March, developer Riley Testut spoke at a workshop on the Digital Markets Act, as Macrumors recalls. He was asking Apple officials what would happen if a young developer’s app went viral overnight. He spoke from experience, his GBA4iOS app had been downloaded more than 10 million times outside of the Apple Store.
This could result in hundreds of thousands of dollars (or more) in fees. Kyle Andeers, Apple’s vice president, explained at the time that the company was working on a solution. It’s now online.
Also in March, the European Commission banged its fist on the table and launched DMA infringement proceedings against Google, Apple, Meta and Amazon. Complaints against the iPhone’s father include Apple’s “new pricing structure and other terms and conditions applicable to alternative app stores and web-based app distribution.” This could be contrary to Article 6(4) of the Digital Markets Act.
Sideloading: iPadOS will follow the path of iOS this fall
Yesterday, Apple updated its page explaining how its “Core Technology Fee” works. The first piece of news is that iPadOS will get the same treatment as iOS “by the end of the fall.” Don’t think of this as a good “free” deed on Apple’s part, the operating system has just been designated as a gatekeeper.
Therefore, it is therefore subject to the DMA, like iOS. The manufacturer has six months to comply with the regulations, which brings us to this fall.
Subsequently, the narrative changed rapidly, and the company now claims to offer “conditions under which many developers do not pay CTF.” In fact, the basic principle – €0.50 for each first annual planting above a threshold of 1 million – remains exactly the same, but several exceptions are added.
As before, apps with fewer than one million annual downloads are exempt, as are nonprofits, accredited educational institutions, and government entities that benefit from the Apple Developer Program fee waiver.
An important novelty is that developers who do not earn any income are also exempt from the CTF. “This includes offering a free app with no monetization of any kind (physical, digital, advertising, or otherwise). The goal is to give students, hobbyists, and other non-commercial developers the ability to create a popular app without paying CTF,” Apple explains.
“Small” developers: special conditions
Then, for “small” developers, Apple offers a three-year “start-up” program.
Those that generate less than €10 million in revenue (globally, across all businesses) and have not yet exceeded one million first annual installations will benefit from a three-year grace period: “They will not pay CTF for first annual installations that exceed the threshold as long as they continue to generate less than €10 million in global turnover over the three-year period.”
If, over the course of this three-year period, a “small development of the