Apple has announced plans to extend its newly introduced core technology fee (CTF) to apps downloaded on its App Store for iPadOS, after the operating system for iPads was included in a list of key services subject to EU tech rules.
The move comes as part of Apple’s efforts to comply with the Digital Markets Act (DMA) enforced by the European Commission, which mandates changes to Apple’s closed ecosystem.
In March, Apple introduced a CTF of 50 euro cents per user account per year for major app developers, regardless of whether they utilise Apple’s payment services or the App Store. However, the first one million user accounts are exempted from this fee.
The inclusion of iPadOS as a gatekeeper platform under the Digital Markets Act prompted Apple to extend the recent iOS changes, which allow app developers to distribute their iPhone apps directly to consumers, to iPadOS as well.
As a result, the CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and alternative marketplaces, Apple stated in a blog post.
To address concerns regarding the financial burden on smaller developers, Apple outlined 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 during a three-year period. Additionally, developers such as students, hobbyists, and those creating free apps without monetisation will be exempt from the fee.
Currently, only developers whose apps do not exceed one million first annual installs per year, non-profit organisations, government entities, and educational institutions approved for a fee waiver are exempted from the CTF.
Source: Reuters
