CommentComment

From John Gruberā€™s excellent summary of last weekā€™s DMA proposal:

The Core Technology Fee (CTF) disrupts the free/freemium model used by Appleā€™s biggest rivals and competitors. Metaā€™s apps are all free: WhatsApp, Instagram, Facebook, and now Threads. Meta has paid Apple effectively nothing for those apps, ever. The YouTube app offers IAP subscriptions but most of Googleā€™s popular iOS apps are just completely free, so Google pays Apple nothing. Spotify has 500 million worldwide users, split 40-60 between paid and free (ad-supported). That means Spotify likely has roughly 100 million free users on iOS -- and Spotify pays Apple nothing.

If any of these companies, with hundreds of millions of EU users, opts in to the new EU rules (and thus opts out of the existing App Store rules), theyā€™ll be on the hook to pay Apple hundreds of millions of dollars (well, euros -- but theyā€™re roughly 1:1) per year.

At first glance, this sounds like the ā€œre-thinkingā€ of the App Store I wished for back in Issue 544. Except it isnā€™t. šŸ˜¬ The opt-in nature of Appleā€™s proposed changes will mean none of those huge companies that distribute free apps would ever choose to sabotage themselves by choosing the new deal, effectively cementing that part of the original App Store structure forever. Iā€™m not terribly surprised that what I was suggesting wasnā€™t possible, as applying a new mandatory fee structure on large companies that have been paying nothing would have been incredibly challenging, and also invited yet more scrutiny on Apple.

I didnā€™t see any speculation about a two-tier system before this announcement, but it makes sense for Apple, who is presumably happy with how it all worked before these changes and, I believe, would be happiest if everyone stuck with the original App Store financial structure.

Itā€™s going to be hard for anyone except a small number of billion-dollar companies to adopt these terms, so I think Iā€™m done talking about it. I didnā€™t expect it would be for smaller developers, but this is not a scheme for anyone reading this newsletter to get involved with. The risks of the CTF are too significant. We should leave the huge companies and governments alone to fight with each other over this.

I tried several times to write more on this subject this week, but it all feels a little pointless. Anything that you or I can say makes no difference at all. All Iā€™ll say is that I donā€™t feel good about any of the involved parties right now. What a messy situation.

Dave Verwer  

News



Tools

Code



Business and Marketing

Jobs

Senior Mobile Software Engineer, iOS (Swift) @ Doximity ā€“ We are looking for a talented iOS Software Engineer to join our growing team of developers. We have built and maintain a suite of fully-native iOS and Android apps that healthcare professionals use on a daily basis to increase productivity and provide better patient care. ā€“ Remote (within US timezones)

iOS Developer @ KURZ Digital Solutions GmbH ā€“ Join KURZ Digital Solutions! Take the lead in developing innovative apps as an iOS developer and explore modern technologies in a dynamic team. Experience a culture of learning and creativity that combines tradition with digital innovation. ā€“ Remote (within European timezones) with some on-site work (Germany)

 

Are you hiring? Post open Swift and Apple platform positions for free over at iOS Dev Jobs!

 

And finally...