That's what it's called Basic technology fees The amount of €0.50 per download was discussed during a workshop on Apple's compliance with the European Digital Markets Act. Apple attorney Kyle Anders said Apple believes the company meets all the requirements of the Digital Markets Act. But sometimes unexpected bottlenecks appear as well. For example, iOS developer Riley Testot said that when he was an 18-year-old high school student, he released an app that became an unexpected hit. Under the current circumstances, he would financially destroy his family in one fell swoop.
Testut has become known for its Game Boy Advance GBA4iOS emulator. The app launched off the App Store in 2014 and has been downloaded more than 10 million times. According to Apple's new rules in the European Union, he will have to pay 5 million euros. This is impossible for a free app without ads. It would financially ruin young men like Testot in one fell swoop.
Developer Such fears That from now on parents will be careful if children want to create an app.
Also featured in the video above is Gary Davis (right), who we recently interviewed.
The core technology fee is intended to compensate Apple for the use of tools and infrastructure. The compensation is actually intended for apps from big tech companies like Spotify and X, but it also has an impact on people who dream up their own app and then unexpectedly face a multi-million euro bill. These are amounts that the average student or salaried employee would never be able to afford…annually!
to Apple fee calculator You can find out how much money you lost:
The fact that basic technology fees are a problem for small developers of free applications was already known in January 2024 pointed out By developer Steve Troughton Smith. He then predicted that it would not be sustainable.
Anders now says Apple is working on a solution, but it hasn't been found yet. He pointed out that Apple does not want to nip innovation in the bud. Young app makers and their parents don't have to be afraid to launch an app, Anders promised. He stressed that Apple's payment model for apps has been working well so far, but must now be transformed in a hurry, so that not everything is perfect yet:
What we are trying to do is dismantle the model that has been embedded for fifteen years. For fifteen years we monetized everything by committee. It included everything from technology to distribution to payment processing. The great thing about this model is that it allowed developers to take risks. Apple only gets paid if the developer gets paid, and that has been a great driver of innovation over the last 15 years.
Like I said, we've seen kids as young as 8, 9, 10 and even teenagers creating amazing apps and this is one of the great success stories of the App Store. In terms of underlying technology fees and our business model, we had to change. DMA mandates forced us to break down what we had built and price each component individually. Now we have fees for technology, tools and services, and fees for the distribution and services we provide through the App Store. And then we have a separate payment processing fee if a developer wants to use that.
According to Anders, there should be room for dreamers, whether they are children, adults or grandparents. Everyone should be able to create an app, not just big companies. Anders says his company looked for examples of widespread applications, but couldn't find any. But regardless of the numbers, Apple wants to prevent people from being afraid to launch an app.
50 cents per application
It's still unclear when Apple will offer a solution, or what that solution will be. Rare cases appear to be evaluated separately. However, in principle, the Core Technology Fee (CTF) applies to all apps released under Apple's new business terms. It also applies to apps distributed outside the EU App Store. Developers pay €0.50 for each first install of an app, if that app has been installed more than 1 million times. An initial installation is the first time a customer downloads an application to a device per year. If you download the app first on your iPhone and then on your iPad, this will count once.
Fees apply to free and paid apps. This could lead to a situation where the developer owes Apple millions without ever getting a dime. If you develop an app targeting a global audience, 2 million app installs per year is quite realistic. You will then have to pay 500,000 euros per year to Apple.
This way you avoid a huge bill from Apple
There are actually ways to get rid of massive CTF amounts. One solution is for the maker of the free app to charge €0.50 to break even. You won't earn anything from it, but using the income from your app, you can pay Apple's hefty bill. Another solution is to not accept the new EU App Store business terms. It then continues to operate under the old conditions, paying a 15 to 30 percent commission to Apple. In this case, nothing will change: you can continue to offer your free application and you will no longer receive an invoice. You are then obligated to remain in the app store and cannot, for example, display your app via your website. Developers have one chance to return from new conditions to old conditions.
See also
For example, Apple will adapt the European App Store for sideloading
Apple will reduce tariffs on EU app makers if they agree to the new terms. The company today announced a package of measures related to upcoming EU legislation (DMA). Alternative marketplaces for apps will be created and developers will be allowed to use alternative payment methods.
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