Apple announced that it will be extending the core technology fee to iPadOS apps downloaded from its App Store. This decision comes in response to the operating system for iPads being added to a list of key services subject to EU tech rules. In March, Apple introduced a core technology fee of 50 euro cents per user account per year for major app developers, regardless of whether they use Apple’s payment services or its App Store. The first 1 million user accounts are exempt from this fee.
The core technology fee is part of a series of new charges related to changes required to comply with the Digital Markets Act. This Act mandates that Apple open up its closed ecosystem by allowing app developers to distribute their iPhone apps directly to consumers instead of through the App Store, among other obligations.
Apple stated in a blog post that the European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act. As a result, Apple will implement the recent iOS changes for apps in the European Union to iPadOS later this fall, as mandated. The core technology fee will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces.
The company also announced that small developers with less than 10 million euros in global annual business revenue will either pay no core technology fee or a capped fee over 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 core technology fee.
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 core technology fee.