In response to the Digital Markets Act, Apple has announced that it will be extending the core technology fee to iPadOS apps downloaded from its App Store. This decision comes after the operating system for iPads was added to a list of key services subject to EU tech rules. The core technology fee was first introduced in March as part of a series of new charges related to changes required to comply with the Digital Markets Act.
The core technology fee applies to all major app developers who use either Apple’s payment services or its App Store. However, 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.
The European Commission designated iPadOS as a gatekeeper platform under the Digital Markets Act. As a result, Apple will implement 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 Web Distribution and/or alternative marketplaces in addition to those downloaded through the App Store.
Apple’s blog post announced these changes and explained that they are necessary for compliance with the Digital Markets Act. This Act requires Apple to 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.
