Apple has announced that it will be extending a new core technology fee to iPadOS apps downloaded from its App Store in compliance with EU tech regulations. This comes after iPadOS was added to the list of key services subject to these rules. The company introduced a core technology fee of 50 euro cents per user account per year for major app developers, even if they do not use Apple’s payment services or its App Store. The first 1 million user accounts are exempt from this fee.
The Digital Markets Act (DMA) requires Apple to open up its closed ecosystem by allowing app developers to distribute their iPhone apps directly to consumers instead of solely through the App Store, among other obligations. As a result, the core technology fee (CTF) will now apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces.
Apple also announced that small developers with less than 10 million euros in global annual business revenue will either pay no CTF or a capped CTF during a three-year period. Developers with no revenues, such as students, hobbyists, and those who create free apps without monetization, will not be charged the CTF. Currently, only developers whose apps do not exceed one million first annual installs, non-profit organizations, government entities, and educational institutions approved for a fee waiver are exempt from the CTF.