Home ยป Enhanced Core Technology Fee Structure for Developers in Europe: Apple’s Response to Complaints

Enhanced Core Technology Fee Structure for Developers in Europe: Apple’s Response to Complaints

Changing the terms for app developers in the European Union group of Apple to comply with the DSA law poses ongoing issues, especially regarding the new Core Technology Fee (CTF) of 0.5 euros per download per year for apps exceeding 1 million initial downloads. This has prompted the European Commission to consider investigating this matter.

Recently, Apple announced enhancements to the details of calculating the Core Technology Fee (CTF) to provide more clarity and accommodate developers who should not be charged despite high download numbers. Exempt parties now include non-profit organizations, governmental bodies, and educational institutions.

CTF will not be levied if developers have no revenue-generating plans for their apps, particularly for students, hobbyists, or non-commercial organizations, especially for popular apps with rapid downloads. Small developers earning less than 10 million euros globally per year can request a CTF exemption for the first 3 years to allow business structure adjustments and prevent CTF from becoming an early cost. If the app fails to reach 1 million downloads after 3 years, this fee is waived.

For companies earning between 10 and 50 million euros, the CTF will be capped at a maximum of 1 million euros per year for the first 3 years. However, larger companies will be subject to the full CTF amount.

Apple also addressed concerns raised by the European Commission about iPadOS falling under the Gatekeeper platform as per the DSA law, similar to iOS. Apple will align with iOS guidelines in Europe, allowing app downloads outside the store and implementing the CTF for developers, with further details to be updated in the future.

TLDR: Apple is adjusting developer terms in the EU to comply with DSA laws, introducing the Core Technology Fee, and aligning iPadOS with iOS guidelines.

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