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Apple is expanding its core technology fee to include iPadOS apps

Apple is expanding its recently introduced core technology fee (CTF) to include iPadOS apps downloaded from its App Store, in response to the iPad operating system being listed among key services subject to EU tech rules. Initially announced in March, the CTF imposes a charge of 50 euro cents per user account per year for major app developers, with the first 1 million user accounts exempted. These changes are part of Apple's efforts to comply with the Digital Markets Act (DMA), which mandates opening up its closed ecosystem to allow app developers to distribute their iPhone apps directly to consumers, among other obligations.

In a recent blog post, Apple confirmed that iPadOS will be designated a gatekeeper platform under the Digital Markets Act, and the CTF will extend to iPadOS apps downloaded through various channels, including the App Store, Web Distribution, and alternative marketplaces. The company also announced that small developers with less than 10 million euros in global annual business revenue will either pay no CTF or a capped fee over a three-year period. Additionally, developers with no revenues, such as students, hobbyists, and creators of free apps without monetization, will be exempt from the fee.

Currently, exemptions from the CTF apply to developers whose apps do not exceed one million first annual installs, non-profit organizations, government entities, and educational institutions approved for a fee waiver. These measures reflect Apple's commitment to complying with EU regulations and fostering a more equitable environment for app developers within its ecosystem.

Source: adapted from an article by Sophie Blake, Author for Mobile Marketing Reads.

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