Apple announced that it will extend the core technology fee to iPadOS apps downloaded on the App Store after the operating system was 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, even if they do not use Apple’s payment services or App Store. The first 1 million user accounts are exempt from this fee.
These new charges are linked to changes required to comply with the Digital Markets Act, which mandates that Apple open up its closed ecosystem. This means that app developers will be able to distribute their iPhone apps directly to consumers instead of through the App Store. The European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act, leading Apple to bring the recent iOS changes to the European Union to iPadOS later this fall.
The core technology fee will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and alternative marketplaces. Small developers with less than 10 million euros in global annual business revenue will either pay no core technology fee or a capped fee during a three-year period. Developers who have no revenue, 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 per year, non-profit organizations, government entities, and educational institutions approved for a fee waiver are exempt from the core technology fee. The exchange rate is $1 = 0.9360 euros.