Apple extends new core technology fee to iPadOS apps

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NEW YORK, May 4: In response to the European Union’s regulatory framework, Apple announced on Thursday its decision to apply a core technology fee (CTF) to iPadOS apps downloaded from its App Store. This move comes after the EU designated iPadOS as a gatekeeper platform under the Digital Markets Act (DMA), requiring Apple to extend its recent iOS changes to the iPad operating system.

The core technology fee, introduced in March, amounts to 50 euro cents per user account annually for major app developers, regardless of whether they utilize Apple’s payment services or the App Store. However, the first 1 million user accounts are exempted from this fee.

The implementation of the CTF is part of a broader initiative to comply with the DMA, which aims to open up Apple’s closed ecosystem. One of the DMA’s mandates is to allow app developers to distribute their iPhone apps directly to consumers, bypassing the App Store.

In a blog post, Apple clarified that the CTF will apply to iPadOS apps downloaded through various channels, including the App Store, Web Distribution, and alternative marketplaces.

Moreover, Apple outlined special considerations for small developers, stating that those with less than 10 million euros in global annual business revenue will either be exempt from the CTF or subject to a capped fee for three years. Additionally, developers with no revenue, such as students, hobbyists, and creators of free apps without monetization, will not incur the core technology fee.

Currently, exemptions from the CTF are granted to developers whose apps do not exceed one million first annual installs, as well as non-profit organizations, government entities, and educational institutions approved for a fee waiver.

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