Apple Loosens Core Technology Fee for Hobbyists and Small Developers

Link to: https://developer.apple.com/news/?id=d0z8d8rx

Daring Fireball

@daringfireball I don’t know why anyone thought EU mandating alternative stores would mean free access to Apple’s APIs.

If the EU mandates open access to Apple API it’d amount to imminent domain of copyright IP.

@pixelscience @daringfireball Apple is opening this door themselves by not having equal terms for everyone. The fact that you can gain free access to Apple's APIs if you are using the old terms means there are two sets of rules for developers. So long as Apple exempts devs in the old terms from the core tech fee they are leaving themselves open to being forced to drop the CTF for everyone
@amonduin @pixelscience so the EU are screwing us over.
@amonduin @daringfireball When you say “free” do you mean the $99/year iOS developer program and its associated license agreement?
@pixelscience for a corporation with at least tens of millions in annual revenue - $99 is effectively free.

@pixelscience @daringfireball

Now tell me how you apply that logic to MacOS.

Also, people have already paid for that API: iPhones are not free.

@dmitriid @daringfireball Hi Dimitri!

We’ve been over this before and I don’t see the point in arguing with you again.

I’d discuss this again if you can review our prior conversation and can articulate my position back to me.

Have a great day.

@pixelscience @daringfireball

We may have, but I'll reiterate:

- Apple needs developers as much as, if not more than, developers need Apple. iPhone is nothing without the millions of apps Apple keeps boasting about.

- iPhones are not free. Every person that buys an iPhone pays for the development and access to the APIs that power it. It's no different from Apple giving "free access" to the APIs in MacOS

1/

@pixelscience @daringfireball

- Apple has literally no right to insert itself into every single transaction between the user and the developer.

- And on top of that we have Apple's own executives saying that they don't care if AppStore is profitable or not and thay yhey don't even track how much loney it brings. So according to Apple *themselves* they don't have to do what they do

2/2

@dmitriid @pixelscience @daringfireball as for “right” to be part of the transaction…you must not have ever worked retail like in, oh you know, a mall, or practically anywhere, where it’s extremely common for landlords to collect a % of gross as terms of the lease. For being in the mall. Seriously this absurdly common. They built it, they offered it, they charge for it. Build your own platform if you don’t like it. Does Nintendo or Sony give theirs for free? nooope

@delric @pixelscience @daringfireball

Ah yes. How could I forget that for every transaction I have with Nike, for example, they have to pay a percentage to every single mall where they have a presence.

Also: why doesn't the retail analogy work with MacOS?

@dmitriid @pixelscience @daringfireball iPhone was an obvious and immediate hit as soon as it hit the market, even without apps or an app store. Still a day 1 purchase. So the claim that it’s the apps that made the iPhone is rather bumpkins. People like my parents don’t even download apps, but want an easy to use phone that doesn’t require tech support from their children.

@delric @pixelscience @daringfireball

The "obvious choice" for people who don't remember history, at all. The original iPhone especially was a far from obvious choice.

And to deny the fact that apps made iPhone what it is today is to deny reality.

@pixelscience @daringfireball because Apple has been giving away APIs for free for decades and withholding that under the DMA would be blatantly anticompetitive. I have no problem with charging for APIs. Lots APIs are commercially priced. But exclusively charging developers who don’t use an Apple service? That’s not OK.

The price for APIs should be the same for all developers no matter what store.

@abhibeckert @daringfireball When I say “APIs” I mean Apple-owned closed-source frameworks like UIKit, Core Graphics, hardware drivers, the bootloader, etc.

Things one could describe as the “core technologies” of Apple’s platforms needed by developers to make apps.

If you ever build a platform, or even just write an app, then I hope for all our sake that the government doesn’t come and demand everyone else have free access to your work without letting you decide what fair compensation is.

@pixelscience @abhibeckert @daringfireball You continue to ignore the last sentence. The price should be the same regardless of the store. It isn't.

If I develop a Mac app using UIKit and release it on the web I pay only $99. If I develop a music streaming iOS app and distribute it exclusively under the existing App Store terms I pay only $99. If I develop the same music streaming app and want to distribute it both in the App Store and an Alt Store now I have to pay 0.5/download.

@amonduin @abhibeckert @daringfireball Yes. Apple sets its own pricing for licensing its IP. That includes a 15%~30% commission for one store and a flat per-download rate for alternative distribution.

If it makes you feel better, Apple, Xbox, Steam, and PlayStation didn’t consult me ahead of time for what I think fair store licensing model should be, either.

@pixelscience @abhibeckert @daringfireball in my example apple would receive no commission for the app that used the old App Store exclusive terms. This is them essentially giving away their IP if you agree not to take advantage of the DMA, this is essentially steering, and should be against the rules (we shall have to wait and see but I have my doubts the CTF will stand up forever)

@amonduin @abhibeckert @daringfireball If I understand you:
- Apple doesn’t charge a flat per-download core technology fee for App Store downloads
- Apple charges for access to their IP is through App Store terms. Ex: 15%~30% retail margin for purchases
- But charging anything for access to Apple IP is steering

If I got that wrong, let me know.

@pixelscience @abhibeckert @daringfireball
If an App dev chooses to use the old terms then:
- Apple charges 0% to Reader apps if they are using the old terms
- Apple charges Walmart/McDonalds 0% for third party IAP

If you choose to accept the option (even if you don't use it) to put your app in third party stores then you are charged 0.5 per download (with Apple's asterisks)

This is steering to the old terms because the same App can be charged 0% or 0.5/download...

@amonduin I think your point about ‘steering’ relates to the DMA’s provisions to prevent gatekeepers from “treat services and products offered by the gatekeeper itself more favourably in ranking than similar services or products offered by third parties on the gatekeeper's platform”.

But why would anyone assume a third party would be treated *more* favorably than first party?

Even if EC decides core technology fee is unfair developers won’t get free access to Apple API.

@pixelscience the difference is a game business can be successful without deploying on Xbox, Steam, or PlayStation - and many are.

That’s not the case with iPhone. There are major industries, including many direct competitors to Apple (such as Spotify) which have to agree to whatever terms Apple comes up with. That’s why Apple is being held to a higher standard than game consoles.

Ultimately it’s up to government to make these decisions.

@abhibeckert Are there are any third-party AAA studios that don’t publish to multiple platforms? It’s been 7 years since I worked at PlayStation DTG. I could be out of touch.

Either way, it’s a courts game for Apple at this point. They have to justify to the EC courts that their behavior is legal.

For us developers that choose to use Apple frameworks I doubt publishing is going to get meaningfully better — different, perhaps — but not better.

It’s worth reading this https://developer.apple.com/support/core-technology-fee/

Core Technology Fee - Support - Apple Developer