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This seems quite clever by Reddit. It looks like there's some deal that if they remove ads from their apps they get free api usage for a few months. Seems suspicous that both apps doing this have removed ads.
This will soften the blow a little for Reddit as now at least 1 decent sized 3rd party app on each platform (Android/IOS) will continue to work for a while.
A clever PR move that changes nothing.
API fee is not free, only delayed. I have no idea how the devs will handle the combined bill when it comes. It'll be a huge bill while income from subscriptions have not really picked up yet. I would not take this risk even if someone give me Appollo source code for free.
I don't think they will be paying anything until they implement subscriptions. They are exempt for now in exchange for removing advertising from their apps.
Once they implement subscriptions then they get income to cover the cost of the api.
The new API requires you to remove ads regardless, they could get banned by reddit for serving their own ads.
You're right that this is a PR move rather than a genuine attempt to work with devs, but I think it would have been more clever if Reddit had done this three weeks ago, when they could have undermined the "this will kill third party apps" narrative. Instead, they waited until Huffman had spouted off about how he admires Elon, who killed Twitter's third party apps, and how the API was "never meant" for third party apps. Basically, he has expressed a personal desire to see third party apps killed, and usually the CEO's opinion overrules official company statements with this kind of thing. So now, it's going to be hard for the company to turn around and claim that killing third party apps isn't their end goal.