Apple Extends New Core Technology Fee to iPadOS Apps: What You Need to Know About the EU’s Digital Markets Act

On Thursday, Apple announced that it will extend a new core technology fee (CTF) to iPadOS apps downloaded from its App Store. This decision comes after the European Union designated iPadOS as a gatekeeper platform under the Digital Markets Act. The CTF of 50 euro cents per user account per year will now apply to iPadOS apps, in addition to iOS apps, as part of Apple’s efforts to comply with EU tech rules.

The CTF was introduced in March for major app developers, regardless of whether they use Apple’s payment services or App Store. The first 1 million user accounts are exempt from this fee. This move is in line with the requirements of the Digital Markets Act, which aims to open up closed ecosystems and allow developers to distribute iPhone apps directly to consumers.

In a blog post, Apple stated that the CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and alternative marketplaces. Additionally, small developers with less than 10 million euros in global annual business revenue will either pay no CTF or a capped fee during a three-year period. Those with no revenue, such as students, hobbyists, and developers 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. These changes mark Apple’s commitment to aligning with EU regulations and ensuring fair treatment for developers accessing its platforms.