Apple announces 'Core Technology Fee': €0.50 fee per non-App Store install, but with a condition

Apple is introducing major changes to how apps operate in the European Union, giving developers new choices and opening the door to potential competition in its tightly controlled App Store.

If you want to read about other significant changes,

• Changes announced for iOS
• Changes announced for App Store
• Changes announced for Safari

Under the new business terms, available immediately for developers to test in iOS 17.4 beta, two key options emerge:

1. Stick with the existing model: Developers keep using the App Store as they always have, paying the standard 30% commission on in-app purchases.

2. Embrace the new EU options: This unlocks some notable changes, including:

• Lower commissions: Reduced rates of 10% (for most developers) or 17% for digital goods and services, a significant drop from the standard 30%.
• Freedom to choose payment processors: Apps can bypass Apple’s payment system and use their own, potentially saving transaction fees.
• Alternative app stores: Developers can distribute their apps through alternative marketplaces outside the App Store.
• Core Technology Fee: For apps downloaded more than 1 million times a year, a €0.50 fee applies for each new install outside the App Store.

While Apple emphasizes its commitment to providing a secure and trusted platform through its payment processing and App Store, the company also acknowledges the Digital Markets Act (DMA) in the EU, which mandates these new app distribution and payment options.

More here.