Apple is finally opening up the iPhone to sideloading and alternative app stores, at least in the European Union. The company is also allowing developers to use third-party payment services. All of this is part of Apple’s efforts to comply with the new Digital Markets Act (DMA) of the European Union, and at first glance, these changes seem to be a result of regulatory pressure.
Some developers are already criticizing Apple’s new guidelines. CEO of Epic Games, Tim Sweeney, known for his criticism of Apple, sharply criticized these changes, calling them “hot garbage”. However, Apple has new business terms that have some serious drawbacks, especially for larger developers. While the new rules will reduce the commission Apple charges, they will also introduce a new fee for Core Technologies amounting to 0.50 euros for apps with over a million downloads. For popular apps, these fees can add up.
Nikita Bier, the founder of the app Gas, which was later acquired by Discord, used Apple’s fee calculator to show how much Apple will take from apps subject to the Core Technologies fee. In a post on X (formerly Twitter), Bier shows that an app that generates $10 million in revenue and has 10 million downloads using the App Store payment processor will pay nearly $515,942 per month. That amounts to around $6.2 million per year payable to Apple, compared to $250,000 per month or about $3 million per year under the previous terms.
Critics also point out that Apple will require a €1,000,000 letter of credit from a financial institution with an “A” rating to open an alternative app store in the European Union.
Some developers are skeptical about the new changes. Paul Haddad, co-founder of Tapbots, says that “any reduction in the excessively high commission Apple charges is beneficial for developers”. However, Haddad notes that the Core Technologies fee may not be feasible for freemium apps and those that offer demo versions. “I’m not interested in risking money by installing/updating every app just to save a little on those who actually sign up for our app,” says Haddad.
Apple’s new policy is also criticized by Maxmamiliano Firtmana, a developer and author, who believes that Apple is employing “all the dirty tricks” to force developers to stick to the current rules and not to use new ones that will impose an installation fee (on every store), in addition to the revenues Apple will try to get from the apps, even if the App Store is not involved in any process.
Despite the potential drawbacks of Apple’s new guidelines, some are already embracing them. AltStore, an app store enabling sideloading on iOS, is already planning to officially launch its store in the European Union. AltStore developer Riley Testut says they are working to meet Apple’s requirements so that users can download AltStore directly from their website. Testut claims that developers will be able to publish their apps for free on AltStore. Additionally, AltStore will not take a commission from apps available exclusively to patrons through the Patreon platform.
Only time will tell if other developers and alternative app stores will adopt Apple’s new rules. One of the biggest challenges Apple will face in the coming days is whether the European Commission will accept the changes implemented by the company. The Commission will begin evaluating firms’ responses upon the entry into force of the DMA on March 7, with Commissioner Thierry Breton leading the…
FAQ:
1. What changes are being made to the iPhone and app stores in the European Union?
– Apple is opening up the iPhone to sideloading and alternative app stores in the EU. This is part of Apple’s efforts to comply with the new Digital Markets Act of the European Union.
2. What new business terms does Apple introduce for developers?
– Apple is reducing the commission it charges but introducing a new fee for Core Technologies amounting to 0.50 euros for apps with over a million downloads.
3. What criticism did these changes provoke?
– Some developers believe that the new terms have serious drawbacks, especially for larger developers. Critics point out the high fees for Core Technologies and the requirement of a €1,000,000 letter of credit from a financial institution with an “A” rating to open an alternative app store in the EU.
4. What specific fees may result from the new terms?
– Example: An app generating $10 million in revenue and having 10 million downloads would have to pay nearly $515,942 per month, resulting in an annual fee of around $6.2 million payable to Apple, compared to about $3 million under the previous terms.
5. What are developers’ opinions on the new changes?
– Some developers believe that any reduction in the commission is beneficial but express concerns about the feasibility of the Core Technologies fee for freemium apps and those with demo versions. Others believe that Apple is using tricks to force developers to stick to the current rules.
6. Are there developers and alternative app stores that have decided to adopt Apple’s new terms?
– Yes, AltStore, an app store enabling sideloading on iOS, plans to officially launch its store in the EU and meet Apple’s requirements. AltStore will allow developers to publish their apps for free and will not take a commission from apps available to patrons through the Patreon platform.
7. Will the European Commission accept the changes implemented by Apple?
– The Commission will begin evaluating firms’ responses upon the entry into force of the DMA on March 7. Only time will tell if the European Commission will accept the changes implemented by the company.
Key Terms/Jargon:
– Sideloading: Installing external apps on a device without using the official app store.
– Alternative app stores: Stores other than the App Store where developers can publish their apps.
– Commission: The fee charged by Apple to developers for using the App Store.
– Core Technologies: A new fee introduced by Apple for apps with over a million downloads.
– Freemium: A business model where an app is available for free but offers paid additional features or content.
– Sideloading: Sideloading
– App Store: App Store
– Patreon: Patreon
Suggested related links:
– Apple
– AltStore
The source of the article is from the blog jomfruland.net