Understanding the Core Technology Fee for iOS Apps in the European Union: A Guide for Developers

Apple's recent announcement about the new business terms for developers operating in the European Union (EU) has sparked a lot of interest and confusion among app creators. One of the key changes is the introduction of the Core Technology Fee (CTF), which has left many wondering what this means for their business. In this article, we'll delve into the details of the CTF, who needs to pay it, and how it affects developers operating in the EU.

Firstly, it's essential to understand that not all developers will need to pay the CTF. According to Apple, those with a no-revenue business model offering free apps without monetization are exempt from paying this fee. Additionally, developers whose apps do not exceed one million first annual installs per year and nonprofits, educational institutions, and government entities with an Apple Developer Program fee waiver also do not need to pay the CTF.

For developers who choose to agree to the new business terms, membership in the Apple Developer Program includes one million first annual installs per year for free for apps distributed from the App Store, Web Distribution, and/or alternative marketplaces. This means that many developers can enjoy a significant reduction in their costs without having to pay the CTF.

Another exciting development is that developers operating under the new terms can now use alternative payment processors in their apps on the App Store across Apple operating systems in the EU. This gives them more flexibility and control over how they manage transactions with users.

The changes also extend to iPadOS, which will be updated later this fall to reflect these new business terms. Developers have the option to remain on the current business terms or adopt the new terms for iOS apps in the EU.

So, what is the CTF exactly? It's an element of the new business terms that reflects the value Apple provides developers through ongoing investments in tools, technologies, and services that enable them to build and share innovative apps with users. In other words, it's a fee that recognizes the significant role Apple plays in helping developers succeed.

In conclusion, while the CTF may seem daunting at first, many developers operating in the EU can avoid paying this fee altogether. Those who do need to pay will enjoy reduced costs thanks to the one million free installs per year included with membership in the Apple Developer Program. As always, it's essential for developers to stay informed about changes and updates from Apple to ensure they're making the most of their app-building endeavors.

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