Apple extends core technology fee to iPadOS apps

Apple is set to extend its newly introduced core technology fee (CTF) to iPadOS apps downloaded from its App Store, following the inclusion of the iPad operating system in a list of key services subject to EU tech rules. The tech giant announced in March that it would impose a CTF of 50 euro cents per user account per year for major app developers, even if they do not utilize Apple’s payment services or its App Store, with the first 1 million user accounts exempted from the fee.

The CTF is part of a series of new charges linked to changes to comply with the Digital Markets Act (DMA), which requires Apple to open up its closed ecosystem by allowing app developers to distribute their iPhone apps directly to consumers instead of through its App Store, among other obligations.

In a recent blog post, Apple stated, “This week, the European Commission designated iPadOS a gatekeeper platform under the Digital Markets Act. Apple will bring our recent iOS changes for apps in the European Union to iPadOS later this fall, as required.” It further added, “The CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces.”

The company also announced that small developers with less than 10 million euros ($10.7 million) in global annual business revenue will either pay no CTF or a capped CTF during a three-year period. Additionally, 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 per year, non-profit organizations, government entities, and educational institutions approved for a fee waiver are exempted from the CTF. These changes represent Apple’s efforts to comply with EU regulations and create a fairer environment for app developers within its ecosystem.