Apple has recently made some exciting updates to its app distribution policies in the European Union, aiming to make it easier for developers to thrive. Here’s a breakdown of the key changes:
– Core Technology Fee (CTF): This fee is part of Apple’s alternative business terms in the EU and aims to recognize the value provided by Apple’s tools and services for app development. It helps developers create and distribute apps more effectively.
– Who is exempt from the CTF? Nonprofits, government entities, educational institutions, and developers with zero revenue are not required to pay this fee. This exemption is fantastic news for students, hobbyists, and non-commercial developers who can now launch popular apps without any financial barriers.
– Grace period for small developers: Developers with less than €10 million in global annual business revenue will have a 3-year grace period where they are not obligated to pay the CTF, even if they exceed one million first annual installs. If their revenue grows between €10 million and €50 million within this period, the fee will be applied gradually.
– iPadOS updates: Apple is extending its recent iOS changes to iPadOS by fall 2024 to align with new EU regulations. Developers can choose to adopt these alternative business terms for their apps on iPadOS or continue under Apple’s existing terms. The CTF will apply to iPadOS apps downloaded from various platforms.
We encourage developers to explore the updated App Install reports in App Store Connect, which now includes a handy fee calculator to help them understand the new terms better. Stay tuned for more updates as Apple continues to support and empower developers in the EU market!
