Forced to open the iPhone to alternative application stores, Apple implemented a tax of 50 cents, mandatory for each download, to encourage developers to stay on the App Store. This tax has the opposite effect, since it encourages small developers to abandon the European market. Good news: it will disappear.
With the Digital Markets Act, its digital regulation, the European Union has forced Apple to make several historic changes in recent weeks. Among them: the opening of the iPhone to stores competing with the App Store, such as the Alt Store.
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Unfortunately for developers, Apple was initially very uncollaborative. The brand has implemented a tax of 50 cents per download, called Core Technology Fee, and mandatory for any developer who decides to market an application elsewhere than in the App Store in Europe (after 1 million downloads). This results in ridiculous situations, such as that of the Delta emulator, available free of charge in all countries in the world, except those in the European Union, to pay the famous tax.
On Thursday, May 2, Apple announced good news for almost all application creators: almost all of them are now exempt from the Core Technology Fee. Apps can now be offered in the App Store and elsewhere for free.
The European App Store saves its skin
With this important change, Apple now distinguishes developers into four categories (they will have to prove that they belong to their category once every 12 months):
- Non-commercial developerswho make apps in their free time and don't want to make money: no tax will not be asked of them, including over one million downloads.
- Small developers with a turnover of less than 10 million euros: no tax will not be asked of them, including over one million downloads.
- Small developers with a turnover between 10 and 50 million euros: the tax is capped at 1 million eurosor the equivalent of 2 million downloads, between 2 and 10% of their turnover.
- Developers who earn more than 50 million euros per year: nothing changes, always 50 euro cents per installation above the first million.
Apple's target is always the same: the company wants to make giants like Spotify, Netflix or Fortnite pay, who dream of sharing no euros with it. Other small developers, like those who find overnight success, are no longer in its sights. Note that the turnover concerns the entire activity of the developer, not just the income generated by his application.
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Ahead of the May 2 announcement, Apple has already made several DMA-related changes. Among them, the possibility of downloading an app from a website or creating an application store more easily. Small developers present in Europe have the choice between the current model (between 15 and 30% commission, only on the App Store) and the European model (between 10 and 20%, with a tax only above 50 million this side).
Apple promises DMA changes in iPadOS 18
Alongside this announcement, Apple announced the arrival of DMA changes on iPad “this fall”, a few days after the European Union included iPadOS on its list of access controllers (this timing corresponds to that of iPadOS 18, which should arrive in the fall). Good news for developers: installing an app on iPhone and iPad will only be equivalent to a single fee of 50 cents, if it is done within a period of 12 months.
With these changes, Apple is not only responding to users' protests, but also to European concerns. The European Commission is not very satisfied with the conditions put in place by the Californian brand. This relaxation should help Apple in its defense.