Apple Seeks Solution for EU Fee That Could Bankrupt Viral App Developers
-
Apple is working on a solution for the new 0.50 euro Core Technology Fee that could bankrupt developers of apps that unexpectedly go viral. An Apple exec said they don't want to stifle innovation or scare young developers.
-
The fee applies to apps created under the new EU business terms, for both App Store and non-App Store distribution, after 1 million installs per year.
-
A viral free app could owe significant fees without ever making money, making free/freemium apps risky under the new terms.
-
Developers can still use the existing App Store terms to avoid the fee, but that prevents App Store alternatives and distribution outside the App Store.
-
Apple has tweaked some of the new EU rules based on feedback, like allowing developers to revert terms and easing restrictions on third-party stores, but the core issues around the technology fee remain.