May 27, 2024
Apple Eases Impact of Core Technology Fee on Small Developers

Apple Eases Impact of Core Technology Fee on Small Developers

Posted May 2, 2024 at 4:44pm by iClarified
Apple announced changes to its Core Technology Fee (CTF) today that are meant to ease the fee's impact on small developers in the EU.

The CTF is an element of the alternative business terms in the EU that reflects the value Apple provides developers through tools, technologies, and services that enable them to build and share innovative apps. We believe anyone with a good idea and the ingenuity to bring it to life should have the opportunity to offer their app to the world. Only developers who reach significant scale (more than one million first annual installs per year in the EU) pay the CTF. Nonprofit organizations, government entitles, and educational institutions approved for a fee waiver don't pay the CTF.

Today, Apple introduced two additional conditions in which the CTF is not required:

● First, no CTF is required if a developer has no revenue whatsoever. This includes creating a free app without monetization that is not related to revenue of any kind (physical, digital, advertising, or otherwise). This condition is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.

● Second, small developers (less than €10 million in global annual business revenue*) that adopt the alternative business terms receive a 3-year free on-ramp to the CTF to help them create innovative apps and rapidly grow their business. Within this 3-year period, if a small developer that hasn't previously exceeded one million first annual installs crosses the threshold for the first time, they won't pay the CTF, even if they continue to exceed one million first annual installs during that time. If a small developer grows to earn global revenue between €10 million and €50 million within the 3-year on-ramp period, they'll start to pay the CTF after one million first annual installs up to a cap of €1 million per year.

Developers can learn more about Apple's Core Technology Fee at the link below...

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Apple Eases Impact of Core Technology Fee on Small Developers
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