Apple has announced that it will extend its new core technology fee to developers in Europe who create apps for the iPad. The fee was introduced as part of new rules imposed by the EU and applies to developers who reach more than one million first annual installs per year. However, Apple has also announced an exemption for developers who do not make any revenue and offer their apps free of monetization. This exemption is meant to give students, hobbyists, and other non-commercial developers the opportunity to create popular apps without paying the technology fee.
The fee structure charges developers 50 cents per install over 1 million in the past 12 months. The fee was introduced by Apple following pressure from the EU’s Digital Markets Act to open up access to its mobile system to alternative app stores and payment methods. Non-profit organizations, government entities, and educational institutions are currently exempt from the fee.
Small developers with less than €10 million in global annual business revenue that accept Apple’s alternative business terms will also receive a three-year amnesty from the fee. This amnesty applies to small developers who have not previously exceeded one million first annual installs and who cross the threshold for the first time. If a small developer grows to earn global revenue between €10 million and €50 million within the three-year period, they will start to pay the technology fee after one million first annual installs, with a cap of €1 million per year.
The changes, which were recently introduced for iOS, will be extended to iPadOS in the autumn. The European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act, prompting Apple to apply the new rules to the iPad as well.
