It is known that Apple is still charging developers in the EU despite distributing on alternative app stores, but that is now changing with its recent policy update, particularly for small-time developers.
Through this, Apple is now giving exemptions and lower fees to pay for small developers to distribute their apps to iOS via third-party platforms, with new provisions for the CTF tax.
Many developers first complained to and against Apple that these charges are absurd, mainly as they are not distributed via the main App Store.
Apple: EU Alternative App Store Developers Exempted from CTF
Apple announced its latest policies for the EU region, particularly under the DMA, which allows users to sideload.
Initially, it asked for a certain fee to pay, known as the Core Technology Fee (CTF), which is required from developers distributing outside of the Apple App Store that would be downloaded to iOS.
Now, it is no longer asking for CTF from small-time developers, particularly those whose apps have "no revenue whatsoever."
For creators who developed an app purely for fun, a hobby, or to help others without asking for payments in return (in the form of physical, digital, or advertising goods), their CTF tax on the App Store is waived.
Additionally, small developers earning less than 10 million Euros annually based on their business revenue are given a three-year free ramp to the CTF.
Apple added that those not exceeding one million first annual installs would not be charged with the CTF.
More Provisions for Alternative App Stores, iPadOS to Join
For those exceeding the revenue and installs within the ramp period, Apple would charge CTF.
On the other hand, the iOS changes applied in the past months are also coming to the iPad as the EU recently designated it as a gatekeeper.
Apple's Alternative App Store and EU DMA
When the European Union's DMA took effect, Apple drastically changed its technology, particularly with iOS, which now allows third-party payment options and sideloading for the App Store.
At first, the Cupertino giant drew massive criticisms from its renowned Big Tech rivals and competitors, but it defended that it complied with the DMA.
The first iteration of Apple's DMA compliance was with iOS 17.4 which offered sideloading, new payment options, iPhone NFC tech shared among other fintech apps, and more.
However, with iOS 17.5, Apple allowed users to download apps directly from websites, offering the real sideloading experience familiar to Android's APK.
However, amidst all of this, Apple previously revealed that iOS apps that are distributed outside the App Store still need to apply under its platform and pay a certain fee for doing so.
This is the CTF tax, and after several months since this rollout, Apple is now changing its policies to make way for small developers to avoid paying this, especially if they meet Cupertino's criteria.
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