Brussels: Apple has announced its intention to expand a recently introduced core technology fee to iPadOS apps available for download on its App Store, following the inclusion of the operating system for iPads in a list of key services subject to EU tech regulations, the tech giant revealed on Thursday.
In March, Apple unveiled a core technology fee (CTF) of 50 euro cents per user account per year for major app developers, regardless of whether they utilize any of its payment services or the App Store itself. However, the first 1 million user accounts are exempt from this fee.
The introduction of the CTF is part of a broader array of charges associated with adjustments made to comply with the Digital Markets Act (DMA). This legislation mandates that Apple open up its closed ecosystem by allowing app developers to directly distribute their iPhone apps to consumers, rather than solely through the App Store, among other obligations.
In response to the European Commission designating iPadOS as a gatekeeper platform under the Digital Markets Act this week, Apple stated in a blog post, “Apple will bring our recent iOS changes for apps in the European Union to iPadOS later this fall, as required.”
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The company clarified that the CTF will also extend to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces.
Furthermore, Apple outlined provisions for small developers, stating that those with less than 10 million euros ($10.7 million) in global annual business revenue will either pay no CTF or a capped CTF over a three-year period. Additionally, developers with no revenues, such as students, hobbyists, and those who create free apps without monetization, will be exempt from the CTF.
Presently, 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 excluded from the CTF.
