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Apple says third-party app marketplace creators must have €1,000,000 ‘letter of credit’

Apple today officially announced support for third-party app stores in the European Union, as part of iOS 17.4. In a document on its website, Apple says that anyone looking to develop an alternative app marketplace will have to provide evidence that it can financially “guarantee support for developers and customers.”

Apple says:

In order to establish adequate financial means to guarantee support for developers and customers, marketplace developers must provide Apple a stand-by letter of credit from an A-rated (or equivalent by S&P, Fitch, or Moody’s) financial Institution of €1,000,000 prior to receiving the entitlement. It will need to be auto-renewed on a yearly basis.

Apple says that marketplace developers will need to pay the €0.50 Core Technology Fee for each first annual installation of their marketplace app. This “letter of credit” will help prove to Apple that the marketplace developer as the financial means to support making that payment.

Marketplace developers, unlike developers of traditional apps, will be required to pay the Core Technology Fee immediately. There is no allocation of 1 million free installations for Marketplace developers like there is other developers.

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Avatar for Chance Miller Chance Miller

Chance is the editor-in-chief of 9to5Mac, overseeing the entire site’s operations. He also hosts the 9to5Mac Daily and 9to5Mac Happy Hour podcasts.

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