They think $X is vastly larger than the $Y they would get from third party app developers. So, goodbye to third party app developers.
>Hi Mods,
We’re providing a follow-up on the last API update we made to make sure our mods, developers, and users have clarity on changes we are (and aren’t) making.
API Free Access
This exists and continues to be available.
If usage is legal, non-commercial, and helps our mods, we won’t stand in your way. Moderators will continue to have access to their communities via the API - including sexually explicit content across Reddit. Moderators will be able to see sexually-explicit content even on subreddits they don't directly moderate.
We will ensure existing utilities, especially moderation tools, have free access to our API. We will support legal and non-commercial tools like Toolbox, Context Mod, Remind Me, and anti-spam detection bots. And if they break, we will work with you to fix them.
Developers can continue non-commercial usage of the API, free of charge within stated rates. Reddit is also covering hosting for apps via the Developer Platform, which uses the Data API.
I get the want to simplify things, but it's already simple enough:
1. Reddit brings out absurdly priced API
2. Developers don't want to pay that much
3. Reddit then behind the scenes berates developers, claiming they are trying to blackmail millions of dollars, to the apps serving harmful ads, to posting about how the apps aren't "good citizens" and instead are scraping wildly
4. Developers push back and announce app closures
If it was about "showing ads", they would have budged on price a long time ago, added in guidelines to use the API and serve ads, etc. This is about controlling user data, tracking every bit they can, leveraging their content, and then monetizing the fuck out of it in the age of AI.