Manzana has just updated its rules for app distribution in the European Union, both from the App Store and through third-party stores. After receiving much criticism for the introduction of the Core Technology Fee (CTF), a fee of 0.50 euros for each download after exceeding 1 million first annual installations in Europe, those from Cupertino have implemented a change that exempts some developers from paying.
Specifically, Free applications without monetization will not pay the Core Technology Fee. That is, those that do not have advertisements, microtransactions, sales of physical or digital goods, or income of any other type. “This condition is intended to give students, hobbyists and other non-commercial developers the opportunity to create a popular application without paying the CTF,” indicate from Apple.
Likewise, Apple has introduced a change that will initially exempt small developers with less than 10 million euros of global revenue per year from paying the Core Technology Fee. Those who meet this requirement and have chosen the new application distribution terms in Europe, They will not pay the CTF for 3 years.
In the latter case, app creators will not have to pay the Core Technology Fee even if they exceed one million first annual installations in Europe during that grace period. Yes indeed, as long as they have not previously exceeded that barrier.
If during those three years they increase their annual income to a figure of between 10 and 50 million euros, they will begin to pay the CTF. But it will be after exceeding one million first annual installations, and with a limit of 1 million euros per year.
The inclusion of the Core Technology Fee as part of the changes due to the Digital Markets Law was the cause of strong criticism. But not only from large corporations, but also from developers of free or distributed applications under the model. freemium.
With the new tax, many app creators with low or no income would have had to pay thousands of euros under certain circumstances. For example, an application without the sale of digital goods or services that achieved 1.5 million first installations in one year would have to pay almost 21,000 euros per month in CTF. Even if it were only available from the official App Store, but under the new distribution terms.
With the changes now announced, this will no longer be like that. In fact, Apple has updated your online calculator to reflect this issue. It remains to be seen if the measure is enough to calm the spirits of developers who had threatened to no longer launch apps for Apple devices in the European Union. Although the opposing voices have not been long in coming.
Tim Sweeneyleader of Epic Games, has reloaded against those from Cupertino for this new modification. The businessman described the Core Technology Fee as a “garbage fee.” Furthermore, he said the latest update of the terms is “another rotten and bad faith move.”
It is worth noting that Apple has also announced that iPadOS will receive the same changes in app distribution as iOS. This means that paying the Core Technology Fee will also impact downloading applications for the iPad. Let’s remember that Apple has 6 months to open its tablet in Europe as much as the iPhone.
Source: https://aliteq.com/apple-will-not-charge-the-core-technology-fee-to-apps-without-monetization/