When Apple released the big iOS 17.4 software update yesterday it brought with it a slew of changes and improvements. But if you're in the European Union there is no doubt as to what the biggest change was. With the release of iOS 17.4, Apple added support for third-party app stores for the first time, a move that comes at the behest of the EU's Digital Markets Act. As part of that, Apple is offering developers alternative business terms as well.
Those business terms allow developers to choose a new system in terms of the way Apple takes its cut. While previously all developers paid Apple 30% (or 15% for small businesses) of the money made via the App Store, the new terms change things somewhat. Under the new terms, Apple would charge developers a Core Technology Fee to run the App Store. The Core Technology Fee is 0.50 euros per download after the first 1 million downloads, but there were always concerns about what would potentially happen after that million-download threshold was met. As an example, a developer could potentially offer an app that goes viral out of nowhere, causing a huge number of downloads to be made. If that developer doesn't have a robust monetization system behind them, things could get out of hand and land them with a bill they can't possibly afford.
