Apple to introduce new core technology fee for iPadOS apps

Apple has announced that a core technology fee (CTF) will be introduced to iPadOS apps downloaded on its App Store. This comes after the operating system for iPads was added to a list of key services subject to EU tech rules.

in March announced 50 euro cents per user account per year for major app developers even if they do not use any of its payment services or its App Store. The company also announced that the first 1 million user accounts will be exempted from the fee.

The CTF is a set of new charges that are associated with the changes to comply with the Digital Markets Act (DMA). The Act requires Apple to open up its closed ecosystem by allowing app developers to distribute their iPhone apps directly to consumers instead of through its App Store, among other obligations.

“This week, the European Commission designated iPadOS a gatekeeper platform under the Digital Markets Act. Apple will bring our recent iOS changes for apps in the European Union to iPadOS later this fall, as required,” the company said in a blogpost.

“The CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces,” it said.

According to the company, the small developers with less than 10 million euros ($10.7 million) in global annual business revenue will either not pay any CTF or will have a capped CTF for a period of three-year.

Developers like students, hobbyists, and who create a free app without monetization need not to pay CTF.

Currently only developers whose apps do not surpass one million first annual installs per year, non-profit organizations, government entities and educational institutions approved for a fee waiver are exempted from the CTF.