Apple extends its core technology fees to iPadOS apps

Apple technology fees: Apple announced that it will extend its recently introduced core technology fee (CTF) to iPadOS apps downloaded from its App Store. This decision comes after the European Union included the iPad operating system in its list of key services subject to EU tech regulations.

The CTF, set at 50 euro cents per user account per year for major app developers, will be applicable even if developers do not use Apple's payment services or the App Store. However, the first 1 million user accounts will be exempted from this fee.

The move aligns with Apple's efforts to comply with the Digital Markets Act (DMA), which mandates the opening up of its closed ecosystem. As per the DMA, Apple must allow app developers to distribute their iPhone apps directly to consumers, among other obligations.

In response to the European Commission's designation of iPadOS as a gatekeeper platform under the DMA, Apple confirmed that it will extend the recent iOS changes for apps in the European Union to iPadOS later this year.

The CTF will apply to iPadOS apps downloaded through various channels, including the App Store, Web Distribution, and alternative marketplaces.

Apple also announced special provisions for small developers, stating that those 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. Additionally, developers such as students, hobbyists, and those who create free apps without monetisation will not be subject to the CTF.

Previously, only developers meeting specific criteria, such as those with apps not exceeding one million first annual installs, non-profit organisations, government entities, and educational institutions, were exempted from the CTF.

(With Rueters inputs)