Apple plans to extend the new Core Technology Fee (CTF) to iPadOS apps

Yes, Apple's announcement of the Core Technology Fee (CTF) stirred quite a bit of discussion. It's part of their ongoing efforts to monetize their ecosystem and ensure revenue streams beyond just the App Store commissions.

Apple has confirmed that the Core Technology Fee (CTF) will extend to iPadOS apps downloaded from the App Store. This decision comes after iPadOS was included in the list of key services subject to EU tech rules. The CTF entails a charge of 50 euro cents per user account per year for major app developers, with the first 1 million user accounts exempted from the fee, regardless of whether they use Apple's payment services or the App Store.

The Core Technology Fee (CTF) is among the new charges introduced as part of Apple's adjustments to comply with the Digital Markets Act (DMA). The DMA mandates Apple to open up its closed ecosystem, allowing app developers to distribute their iPhone apps directly to consumers instead of solely through the App Store, among other obligations. In response to the European Commission designating iPadOS as a gatekeeper platform under the DMA, Apple stated in a blog post that it will extend its recent iOS changes for apps in the European Union to iPadOS later this fall, as mandated.

"The CTF will also be applicable to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces," the statement clarified.

The company further stated that small developers generating less than 10 million euros ($10.7 million) in global annual business revenue will either be exempt from the CTF or subjected to a capped CTF over a three-year period.

Developers with no revenue streams, such as students, hobbyists, and those who create free apps without monetization, will not incur the CTF.

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 CTF.