Apple’s response to the EU’s Digital Markets Act: What app developers need to know

Apple's compliance with the EU's Digital Markets Act (DMA) has led to the introduction of new business terms for app developers, providing options such as third-party app stores, alternative payment systems, and increased data sharing. While these changes grant developers more flexibility and control, they also introduce complexities, including the Core Technology Fee (CTF), which charges €0.50 for each new app install, reinstall, or update beyond the first million annually. Developers can choose to adhere to the new terms or continue with existing ones, but each option has significant implications for app distribution and revenue. The changes aim to level the playing field by allowing developers more choices, but the economic impact of the CTF and other fees makes the decision challenging, particularly for apps with high install volumes. Some niche opportunities might exist for apps with high average revenue per user (ARPU), but the situation remains fluid as the new policies are subject to change, and some developers have already expressed concerns to the EU about Apple's compliance with the DMA.