Apple Announces New Core Technology Fee for iPadOS App Developers Amidst EU Regulations: What You Need to Know

In response to the Digital Markets Act (DMA), Apple has announced that it will be extending a new core technology fee to iPadOS apps downloaded from its App Store. This fee is in compliance with EU tech regulations, which require the company to open up its closed ecosystem and allow app developers to distribute their iPhone apps directly to consumers instead of solely through the App Store, among other obligations. The CTF will now apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces.

Apple 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. However, the first 1 million user accounts are exempt from this fee. This change is part of Apple’s efforts to comply with EU regulations and open up its ecosystem.

In addition to this change, Apple also announced that small developers with less than 10 million euros in global annual business revenue will either pay no core technology fee or a capped core technology fee 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.