In a recent European Union event, Apple highlighted the inequality present in the Core Technology Fee (CTF) model which impacts small-scale developers, particularly those creating successful free apps. Officials empowered these developers as key contributors to the thriving app ecosystem and thus deserving of benefits, rather than penalties.
Apple presented a novel alternative aimed at achieving a fairer balance, which focuses on reducing CTFs, particularly for small-scale app developers, enhancing their profitability and long-term sustainability. The proposal was enthusiastically received, hailed as a significant stride toward an equitable tech environment.
The CTF issue was first introduced by AltStore developer Riley Testut, who presented a hypothetical scenario where an app accruing 10 million downloads could amount to a debt of €5 million in fees to Apple. This could result in substantial financial distress for sole developers or small teams.
Kyle Andeer, an Apple representative, acknowledged such potential predicaments, confirming the company’s active search for a viable solution. He reported that Apple’s research and development teams are earnestly working towards a viable resolution. This will involve collaboration with external partners, emphasizing the company’s unwavering commitment to user satisfaction, trust, and security.
Andeer verified that the scenarios proposed by Testut are uncommon. He underscored the structural benefits of Apple in terms of technology, distribution, and payment processing, which have spurred innovation over the last 15 years. This system, he argued, supports developers while fostering creativity and experimentation in the iOS ecosystem.
However, the Digital Markets Act’s recent regulations have prompted considerable changes to Apple’s business model, segregating fees for tech, distribution, and services. These revisions have led to a shift in Apple’s operation, its revenue now categorized separately. Tech fees now include product development and software upgrade costs, distribution fees cover logistics, shipping, and packaging, and service fees include customer support, cloud storage, and app store operations.
Despite these adjustments, Andeer emphasized Apple’s commitment to support individuals and developers. He urged the developer community to stay abreast of the situation. However, he did not furnish any detailed plan.
