Technology

Apple extends new technology fee to iPad, expands exemptions

The iPadOS has been designated a gatekeeper under EU rules

The iPad operating system has been designated as a gatekeeper by the European Commission. File photograph.

Ciara O'Brien
Thu May 2 2024 - 16:52

Apple is to extend to the iPad its new core technology fee it charges developers in Europe, after the tablet software was added to a list that was subject to new rules imposed by the EU.

The tech giant said it would extend the exemption to developers who do not make any revenue, and offer their apps free of monetisation. “This condition is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF,” Apple said in a blog post.

The technology fee, which was introduced under new business terms for developers in the EU, applies to developers who reach more than one million first annual installs per year, with non-profit organisations, government entitles and educational institutions approved for a fee waiver currently exempt.

The current charging structure sees developers who accept the new terms pay 50 cent per install over 1 million in the past 12 months.

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The fee was brought in after the tech giant was compelled by the EU’s Digital Markets Act to open up access to its mobile system to alternative app stores and payment methods. The fee is charged to developers even if they do not use Apple’s payment services.

Small developers – those with less than €10 million in global annual business revenue – that take up the alternative business terms offered by Apple will also get a three-year amnesty from the fee.

It is applicable to small developers that have not previously exceeded one million first annual installs and who cross the threshold for the first time.

“If a small developer grows to earn global revenue between €10 million and €50 million within the three-year on-ramp period, they’ll start to pay the CTF after one million first annual installs up to a cap of €1 million per year,” Apple said.

The changes, which were recently introduced for iOS, will be brought to iPadOS in the autumn, the company said, after the European Commission designated iPadOS a gatekeeper platform under the Digital Markets Act.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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