Responding to feedback and criticism from the developer community, Apple has made a significant adjustment to its Core Technology Fee structure, aimed at alleviating financial pressures on small and non-profit developers within the EU. This decision aligns with the European Union's mandate for Apple to open its platform to third-party app stores, fostering a more competitive market.
Under the original fee policy, developers faced the possibility of incurring fees upwards of half a million Euros should their apps exceed one million downloads in a single year. This policy posed a significant threat particularly to creators of free apps, where high download numbers do not necessarily translate into high revenues.
Apple's revised fee policy introduces two major exemptions aimed at protecting small-scale and philanthropic app developers:
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Non-Profit Exemption: Developers with no global revenue, including those in educational sectors or those creating freeware, are now completely exempt from the Core Technology Fee. To benefit from this exemption, developers must register annually with Apple as a non-profit entity.
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Small Developer Incentives: Developers with annual revenues below 10 million Euros are considered 'small developers' under the new policy. These developers will now enjoy a three-year grace period during which the Core Technology Fee will be waived, regardless of app download numbers. If a small developer's revenue escalates to between 10 and 50 million Euros within this period, the fee will be reinstated but capped at 1 million Euros annually.
These updates are designed to ensure that developers can grow their apps' reach without the immediate burden of excessive fees, and they reflect Apple's commitment to fostering a supportive development ecosystem. This policy change not only helps protect smaller developers from unpredictable costs but also encourages innovation and diversity within the app marketplace.
The new rules have been implemented with immediate effect, as confirmed by Apple's recently updated developer documentation. This strategic move by Apple could significantly alter the landscape of app development within the EU, promoting a healthier, more competitive environment that benefits developers and users alike.
