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Apple adds more carve-outs to its EU core tech fee after criticism from devs | TechCrunch


Apple is tweaking how it applies a new fee that can affect iOS developers in the European Union as it continues to configure its approach to the bloc’s Digital Markets Act (DMA): Developers of free apps will be able to avoid the fee entirely under changes it announced Thursday, which apply from today, while other developers earning under a certain revenue threshold will get longer before they have to pay Apple the fee.

The core technology fee (CTF) remains opt-in for iOS developers in the region, as Apple continues to offer its standard business terms, but those wanting to take up new entitlements the DMA has required Apple to offer — such as allowing sideloading of apps, third-party app stores, and support for alternative payment tech than Apple’s own — must agree to the set of business terms that include the CTF (as Apple calls it).

The fee remains under scrutiny in the region where the Commission, which enforces the DMA on Apple and other gatekeepers — and opened its first investigations, including on Apple, in March — is actively exploring whether the mechanism is enabling the iPhone maker to avoid its obligations to open up the App Store to competition, such as from third-party app stores. But so far the EU hasn’t prevented Apple from charging a fee.

Apple said it’s making changes to the CTF in response to feedback from thousands of developers. Some have expressed concern the fee risks penalizing those who offer free non-commercial apps or small developers who end up with a surprise hit on their hands. An app that goes viral and crosses the 1 million first annual installs threshold Apple had already set before the fee kicks in could end up owing the tech giant a lot of money, since the fee costs €0.50 for each first annual install per year after the 1 million threshold.

In information provided for developers, Apple said the no-fee-for-free-apps tweak is intended to give “students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.” Developers will need to certify their non-commercial status annually to Apple to keep qualifying for the fee exemption. (NB: Government bodies and accredited educational institutions were already exempted from paying the CTF, provided they meet Apple’s criteria.)

Apple said the second change it’s announced aims to provide small developers that score a hit app more time to scale their business. Devs earning less than €10 million in global annual business revenue will get a three-year “free on-ramp to the CTF,” as its developer materials put it.

“Within this 3-year period, if a small developer that hasn’t previously exceeded one million first annual installs crosses the threshold for the first time, they won’t pay the CTF, even if they continue to exceed one million first annual installs during that time,” Apple wrote in a blog post. “If a small developer grows to earn global revenue between €10 million and €50 million within the 3-year on-ramp period, they’ll start to pay the CTF after one million first annual installs up to a cap of €1 million per year.”

Earlier this week the EU announced that Apple’s tablet OS platform, iPadOS, would also soon fall under the DMA too — giving the company six months to ensure it complies with the same rules that already apply to iOS, the App Store and Apple’s Safari browser.

Apple confirmed today that all DMA-related changes it’s applied to iOS will also apply on iPadOS later this fall. (Under the DMA it has six months to meet the iPadOS compliance deadline.)

“Developers can choose to adopt the Alternative Business Terms for Apps in the EU that will include these additional capabilities and options on iPadOS, or stay on Apple’s existing terms,” it wrote in the blog post.

“Once these changes are publicly available to users in the EU, the CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces,” it also noted, adding: “Users who install the same app on both iOS and iPadOS within a 12-month period will only generate one first annual install for that app.”


Software Development in Sri Lanka

Robotic Automations

Apple opens web distribution option for iOS devs targeting EU | TechCrunch


Apple is opening up web distribution for iOS apps targeting users in the European Union starting Tuesday. Developers who opt in — and who meet Apple’s criteria, including app notarization requirements — will be able to offer iPhone apps for direct download to EU users from their own websites.

It’s a massive change for a mobile ecosystem that otherwise bars so-called “sideloading.” Apple’s walled garden stance has enabled it to funnel essentially all iOS developer revenue through its own App Store in the past. But, in the EU, that moat is being dismantled as a result of new regulations that apply to the App Store and which the iPhone maker has been expected to comply with since early last month.

In March, Apple announced that a web distribution entitlement would soon be coming to its mobile platform as part of changes aimed at complying with the bloc’s Digital Markets Act (DMA). The pan-EU regulation puts a set of obligations on in-scope tech giants that lawmakers hope will level the competitive playing field for platforms’ business users, as well as protecting consumers from Big Tech throwing its weight around.

Briefing journalists on the latest development to its EU app ecosystem Tuesday, ahead of the official announcement, an Apple representative said developers wanting to distribute iOS apps directly will be able to tap into the entitlement through beta 2 of iOS 17.5.

In order to do so developers will have to opt into Apple’s new EU business terms, which include a new “core technology fee” charged at €0.50 for each first annual install over 1 million in the past 12 months regardless of where apps are distributed. App makers wishing to avoid the fee currently have no choice but to remain on Apple’s old business terms, meaning they are unable to access any of the DMA entitlements.

In earlier DMA changes, App has opened up to allow marketplace apps in the EU where developers can run their own app stores on iOS, including marketplaces composed of only their own apps.

Additional DMA-driven reforms include more flexibility from Apple around in-app payments, as well as a ban on its usual anti-steering measures. This means that iOS developers opting into the new T&Cs can inform their users of cheaper offers available outside Apple’s own App Store.

Returning to the new option of web distribution for iOS apps, Apple’s criteria for developers wanting to distribute their software directly include that they be in good standing with its developer program; attest to handle things like IP disputes and government takedown requests; and commit to providing iOS users with customer service, as Apple will not offer that kind of support for iOS apps downloaded outside its App Store.

It also emphasizes that all apps distributed from the web must meet its notarizations requirements, which it says are intended to protect platform integrity.

An Apple rep described this as a baseline safety and security standard, which they said iOS users expect to help ensure their device is protected from external risks.

The company continues to argue that sideloading apps carries inherent security risks for mobile users, suggesting it’s trying to find a way to comply with the DMA while taking steps to limit risks the changes create for its users.

The first time an iOS user attempts to download an app from a developer’s website they will be required to authorize the developer to install apps directly on their device. Apple’s current design of the authorization flow involves multiple steps and requires users to verify that they wish to provide permission for developer via the iOS settings menu and by clicking “allow” on subsequent permission pop-ups (the other option, i.e. to deny permission, reads “ignore”).

After they have gone through this multi-step flow and approved a developer, any future direct downloads involve fewer steps, per Apple.

The design of the follow-on flow that Apple showed during the briefing includes a screen notifying users that “updates and purchases in this app will be managed by the developer,” combined with a suggestion they “verify the information below before installing,” which is displayed above a card showing some basic app info and screenshots, as well as a link to see “more” info.

Apple argues these steps and the information iOS surfaces to users during the authorization process for direct web downloads are reasonable security measures; the DMA permits gatekeepers to apply these steps in order to protect platform integrity.

However critics of Apple’s DMA approach have decried these sort of pop-ups as “scare screens,” arguing the flow it designs is intended to inject friction and dissuade iOS users from stepping outside Apple’s garden — such as by implying direct downloads are riskier than downloads through Apple’s own App Store.

Apple’s approach to a number of other elements of DMA compliance are under investigation by the European Commission, so at least some of these criticisms have spurred EU enforcers to take a closer look at its take on what the law demands.

Last month the Commission announced that it’s looking into Apple’s rules on steering in the App Store and the design of choice screens for alternatives to its Safari web browser, which is another regulated core platform service under the DMA. The EU also announced some “investigatory steps” in relation to Apple’s new iOS fee structure, but, for now, the new core tech fee stands.

Given Apple has only just started implementing web distribution for iOS apps, it remains to be seen whether the EU will step in for a closer look at this aspect of its DMA compliance, too.

It’s also unclear how much demand there will be among iOS developers for direct web distribution. Asked about this, Apple said it’s heard from some app makers they want to have the option but it also pointed out it’s a new capability, which is just starting to be made available, saying it’s unsure how many developers will actually want to take advantage of the option. The option sits alongside the existing (established) and still available option of App Store distribution.

In the EU, developers also now have a third route for reaching users: They can submit a marketplace app to Apple requesting to distribute their software through their own alternative store hosted on its platform.


Software Development in Sri Lanka

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