Apple announced that the core technology fee (CTF) will also apply to iPadOS apps that will be downloaded on the App Store.
The announcement came after the European Commission (EU) added iPadOS as a key service to its list that should be regulated.
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Apple Introduces CTF to iPadOS App Developers
The Digital Markets Act (DMA) forced the tech giant to impose a CTF of 50 euro cents per user account per year once they exceeded one million users. The fee applies to every major app developer regardless if they are using the App Store’s payment services or their own.
The European Commission has officially classified iPadOS as a gatekeeper platform based on DMA’s checklist. The changes to the iOS apps in the EU will start to reflect this fall. All iPadOS apps from the App Store, Web Distribution, and alternative marketplaces will apply the CTF.
“Since a first annual install is only counted once per account, developers can deliver unlimited feature updates, bug fixes, and security patches to users for 12 months with no additional fee, regardless of how many devices the user has,” the company explained.
Apple Sets Requirements for CTF Eligibility
In a press release, Apple detailed that some developers will not be charged by the CTF. For instance, if the app fails to exceed one million first annual installs per year, the developer is not required to pay.
Moreover, educational institutions, nonprofit organizations, and government entities who applied for the Apple Developer Program fee waiver are not included in the CTF. Businesses that have no monetization and other small developers are also excluded provided that they fit Apple’s qualifications.
Developers of iPadOS apps must be prepared to pay the CTF of €0.50 for each first annual install of over one million. Apple also clarified that developers are billed for one-twelfth of CTF for each annual install.
“If an app has fewer than one million first annual installs, there is no Core Technology Fee for that app that month,” Apple added.
Related Article: Apple Opens App Downloads From Web for iPhones in EU
