Do the fees developers pay Apple when using alternative app stores comply with Digital Markets Act (DMA) rules? The EU Commission is currently investigating this question with surveys of app developers, Report from American financial news agency BloombergThe issue is whether the fees prevent free competition on Apple’s platforms.
Advertisement
Apple’s Core Technology Fee is only payable by developers who agree to Apple’s optional terms and conditions in the EU. Anyone who continues to sell their apps only through Apple will have to pay the usual commission of up to 30 percent on app and in-app purchases. Since iOS 17.4, alternative marketplaces have become available on iPhones in the EU.
This is how fees work
The terms for paying the “core technology fee” are complex compared to the old regulation: developers pay it for the first installation of an app, but only when the number of installations exceeds one million. Additionally, each additional first installation per year will cost 50 cents – this includes updates.
However, while initially following narrow rules, Apple has made some concessions: You don’t have to pay anything for free apps. Nonprofit organizations are also exempt, and there is a three-year transition period for small developers to purchase apps – this is intended to prevent small developers from being ruined in the event of the sudden success of their app. According to Apple, most developers don’t have to pay any fees due to regulations.
What does the EU want to know from developers?
The EU Commission is still skeptical. The questionnaire, which was sent out in December according to Bloomberg, asks whether developers can afford to charge their buyers, whether they have had to adapt their business models as a result and whether they agree with Apple’s claim that the optional terms actually work. Reduces cost impact for developers. It is uncertain when the questionnaire will be evaluated and further procedural steps will be taken.
If the investigation finds that Apple’s rules do not comply with the DMA, coercive measures and fines will be imposed – up to ten percent of annual sales.
(MKI)
