Apple's EU Core Technology Fee Could Bankrupt Freemium App Developers

App developers in the European Union who choose to opt in to Apple's new business terms must pay an €0.50 "Core Technology Fee" or CTF for every app install over one million installs, a model that has the potential to bankrupt free or freemium app developers.

app store fees eu
Apple does not charge for the first one million "first annual installs" per iOS account each year, but after that, developers will begin racking up charges. A free or freemium app that goes "viral" and is downloaded more than one million times could be forced to pay astronomical fees, as demonstrated in estimates shared by developer Steve Troughton-Smith.


Under Apple's new business terms, a free or freemium app that gets two million annual "first installs" would need to pay an estimated $45,290 in fees per month according to Apple's fee calculator, or more than half a million dollars per year, even if no money is earned.

That's an unsustainable model for free apps, and freemium apps would need to be earning at least €0.50 per user to break even with the fee. A freemium app with thousands of installs from non-paying users could end up owing far more than is made. Developers will likely need to charge up front to ensure their apps make enough money to pay the CTF, as offering a free-to-download app could be risky if downloads exceed 1 million.

Free and freemium app developers can, however, choose to stick with Apple's current App Store business terms instead of opting for the new terms. In that situation, nothing would change, and app developers would continue to pay a 15 to 30 percent commission to Apple.

The €0.50 CTF applies to apps distributed both through the ‌App Store‌ and through alternative app stores if developers choose the new business terms. With the ‌App Store‌, developers are charged the €0.50 fee and must pay a 10 to 17 percent commission to Apple. With an alternative app store, there is no commission. Fees can be estimated for the existing terms and the new terms through a dedicated calculator that Apple has provided to developers.

Here's a breakdown of the available options:

  • Current App Store Agreement - Developers pay Apple a 15 to 30 percent commission. Under one million in revenue is a 15 percent commission through the ‌App Store‌ Small Business Program, over $1 million results in a 30 percent commission. Subscriptions require a 30 percent commission for the first year, and a 15 percent commission for the second year and beyond.
  • New terms, App Store distribution - Commission drops to 17 percent from 30 percent, and 10 percent from 15 percent. There is an additional fee of 3 percent for using Apple's payment system, so the commission would be between 13 and 20 percent for a developer that opts for the new rules and uses in-app purchases. The 3 percent fee does not apply for developers who use alternative payment systems. Developers must also pay €0.50 per app install per user each year after 1 million app installs.
  • New terms, alternative app store distribution - No commission, but developers must pay €0.50 per app install per user annually after 1 million app installs.

According to Apple, the CTF is applied for the first annual install, which is the first time an app is installed by an account in the EU in a 12-month period. After the first annual install, the app can be installed any number of times by the same account for the next 12 months with no charge.

Apple is waiving the fee for nonprofit organizations, accredited educational institutions, and government entities that are approved for a fee waiver.

Apple's Core Technology Fee could also be prohibitively expensive for apps like Spotify that have millions of users. An app that makes $10 million in sales through the ‌App Store‌ with 10 million "first installs" (aka, a 0.99 price) will need to pay Apple over $500k per month.


The EU app ecosystem changes are included in iOS 17.4, and developers who opt for Apple's new system will need to start paying fees starting in March when the update launches to the public.

Popular Stories

iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
Intel Inside iPhone Feature

Apple's Return to Intel Rumored to Extend to iPhone

Friday December 5, 2025 10:08 am PST by
Intel is expected to begin supplying some Mac and iPad chips in a few years, and the latest rumor claims the partnership might extend to the iPhone. In a research note with investment firm GF Securities this week, obtained by MacRumors, analyst Jeff Pu said he and his colleagues "now expect" Intel to reach a supply deal with Apple for at least some non-pro iPhone chips starting in 2028....
ive and altman

Jony Ive's OpenAI Device Barred From Using 'io' Name

Friday December 5, 2025 6:22 am PST by
A U.S. appeals court has upheld a temporary restraining order that prevents OpenAI and Jony Ive's new hardware venture from using the name "io" for products similar to those planned by AI audio startup iyO, Bloomberg Law reports. iyO sued OpenAI earlier this year after the latter announced its partnership with Ive's new firm, arguing that OpenAI's planned "io" branding was too close to its...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Monday December 1, 2025 2:40 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iPhone 14 Pro Dynamic Island

iPhone 18 Pro Leak Adds New Evidence for Under-Display Face ID

Monday December 8, 2025 4:54 am PST by
Apple is actively testing under-screen Face ID for next year's iPhone 18 Pro models using a special "spliced micro-transparent glass" window built into the display, claims a Chinese leaker. According to "Smart Pikachu," a Weibo account that has previously shared accurate supply-chain details on Chinese Android hardware, Apple is testing the special glass as a way to let the TrueDepth...
maxresdefault

iPhone Fold: Launch, Pricing, and What to Expect From Apple's Foldable

Monday December 1, 2025 3:00 am PST by
Apple is expected to launch a new foldable iPhone next year, based on multiple rumors and credible sources. The long-awaited device has been rumored for years now, but signs increasingly suggest that 2026 could indeed be the year that Apple releases its first foldable device. Subscribe to the MacRumors YouTube channel for more videos. Below, we've collated an updated set of key details that ...
Photos App Icon Liquid Glass

John Gruber Shares Scathing Commentary About Apple's Departing Software Design Chief

Thursday December 4, 2025 9:30 am PST by
In a statement shared with Bloomberg on Wednesday, Apple confirmed that its software design chief Alan Dye will be leaving. Apple said Dye will be succeeded by Stephen Lemay, who has been a software designer at the company since 1999. Meta CEO Mark Zuckerberg announced that Dye will lead a new creative studio within the company's AR/VR division Reality Labs. On his blog Daring Fireball,...
Johny Srouji

Apple Chip Chief Johny Srouji Could Be Next to Go as Exodus Continues

Sunday December 7, 2025 10:41 am PST by
Apple's senior vice president of hardware technologies Johny Srouji could be the next leading executive to leave the company amid an alarming exodus of leading employees, Bloomberg's Mark Gurman reports. Srouji apparently recently told CEO Tim Cook that he is "seriously considering leaving" in the near future. He intends to join another company if he departs. Srouji leads Apple's chip design ...
Apple John Ternus 2019

Will John Ternus Really Be Apple's Next CEO?

Friday December 5, 2025 9:01 am PST by
There is uncertainty about Apple's head of hardware engineering John Ternus succeeding Tim Cook as CEO, The Information reports. Some former Apple executives apparently hope that a new "dark-horse" candidate will emerge. Ternus is considered to be the most likely candidate to succeed Cook as CEO. The report notes that he is more likely to become CEO than software head chief Craig Federighi, ...
ios 18 to ios 26 upgrade

Apple Pushes iPhone Users Still on iOS 18 to Upgrade to iOS 26

Tuesday December 2, 2025 11:09 am PST by
Apple is encouraging iPhone users who are still running iOS 18 to upgrade to iOS 26 by making the iOS 26 software upgrade option more prominent. Since iOS 26 launched in September, it has been displayed as an optional upgrade at the bottom of the Software Update interface in the Settings app. iOS 18 has been the default operating system option, and users running iOS 18 have seen iOS 18...

Top Rated Comments

mthomas184 Avatar
25 months ago
If you’re app is free, why the hell would you list it in a side loaded store knowing the fees.

This is a non issue.
Score: 75 Votes (Like | Disagree)
BC2009 Avatar
25 months ago

We all know that the new terms will be mandatory at the point of your annual account renewal.
I am pretty sure the new terms are there to deter people from using alternative app stores. Apple is telling the EU that the work they do to support app developers is not a charity and that adding value to the App Store (and revenue for non-free apps) is where Apple recuperates the costs of the investment they make into Xcode and all the API's (xxxKit's) they provide to developers.

I still recall when game consoles would take like 60% in licensing fees for every cartridge sold. Nobody cried about Nintendo or Sony or Microsoft doing that. How about when Amazon was taking like 95% from independent authors selling books through them and only paid them after they sold a minimum number of books? Yet Apple was the one who DOJ went after in eBooks.

There is nothing wrong with Apple taking the fees they do to provide development tools and distribution. The problem with the App Store that needs fixing is the horribly inconsistent and seemingly arbitrary review process for apps -- you would think Apple's executives would have fixed that by now.
Score: 71 Votes (Like | Disagree)
truthsteve Avatar
25 months ago
well no, you can use the old agreement. just don't switch to the new one.

clickbait title.
Score: 58 Votes (Like | Disagree)
Marshall73 Avatar
25 months ago
Ah, the greed never ends. Apple looked at what unity wanted to do then said “hold my beer”
Score: 42 Votes (Like | Disagree)
Shirasaki Avatar
25 months ago

I am pretty sure the new terms are there to deter people from using alternative app stores.
Not just deter, but with full intention to DOA it. Apple is full on middle fingering EU.
Score: 34 Votes (Like | Disagree)
DFZD Avatar
25 months ago
You don’t build a 3 Trillion Empire by sharing your lunch with other kids.
Score: 34 Votes (Like | Disagree)