New Core Technology Fee for iPadOS Apps: What It Means for Developers and Consumers

Apple has announced that it will be introducing a new core technology fee (CTF) for iPadOS apps downloaded from its App Store. This comes in compliance with EU tech regulations, which have designated iPadOS as a key service subject to these rules. The CTF will apply to all iPadOS apps, regardless of whether they are distributed through the App Store, Web Distribution, or alternative marketplaces.

The CTF is 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. These changes are part of Apple’s efforts to comply with the Digital Markets Act (DMA), which requires 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.

Small developers with less than 10 million euros in global annual business revenue will either pay no CTF or a capped CTF 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.