Apple's fee for other app stores: EU Commission questions app developers
Things have quieted down around alternative app stores in the EU, but tensions between the iPhone maker and the EU Commission still simmer beneath the surface.
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Does the fee that developers have to pay to Apple when using alternative app stores comply with the provisions of the Digital Markets Act (DMA)? The EU Commission is currently investigating this question by interviewing app developers, reports the US financial news agency Bloomberg. The question is whether the fee prevents free competition on Apple's platforms.
The fee, which Apple calls the "Core Technology Fee", is only payable by developers who have agreed to Apple's alternative terms and conditions in the EU. Those who continue to distribute their apps only via Apple pay the usual commission of up to 30 percent on app and in-app purchases. Alternative marketplaces have been available on iPhones in the EU since iOS 17.4.
How the fee works
The conditions for paying the "core technology fee" are complex compared to the old regulation: developers pay this for the first installation of an app, but only when the number of installations exceeds the one million mark. In addition, the 50 cents must be paid for each additional first installation per year – This also includes updates.
However, Apple has made some concessions after initially tightening the rules: nothing has to be paid for free apps. Non-profit organizations are also exempt, and there is a three-year transition phase for small developers with paid apps – This is intended to prevent small developers from being driven to ruin if their app suddenly becomes a success. According to Apple, the majority of developers do not have to pay any fees due to the regulations.
What the EU wants to know from developers
Nevertheless, the EU Commission remains skeptical. The questionnaire, which was sent out in December according to Bloomberg, asks whether developers can pass on the fee to their buyers. It also asks whether they agree with Apple's statement that the alternative conditions actually reduce costs for developers. It is uncertain when the questionnaires will be evaluated and when further procedural steps will be taken.
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If the investigation concludes that Apple's regulation does not comply with the DMA, there is a threat of coercive measures and penalties – of up to ten percent of annual turnover.
(mki)
