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Apple to extend new core technology fee to iPadOS apps
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Apple to extend new core technology fee to iPadOS apps
May 2, 2024 8:23 AM

BRUSSELS, May 2 (Reuters) - Apple ( AAPL ) will extend a

newly introduced core technology fee to iPadOS apps downloaded

on its App Store after the operating system for iPads was added

to a list of key services subject to EU tech rules, the iPhone

maker said on Thursday.

Apple ( AAPL ) in March announced a core technology fee (CTF) of 50

euro cents per user account per year for major app developers

even if they do not use any of its payment services or its App

Store, with the first 1 million user accounts exempted from the

fee.

The CTF is part of a set of new charges linked to changes to

comply with the Digital Markets Act (DMA) which requires Apple ( AAPL )

to open up its closed ecosystem by allowing apps developers to

distribute their iPhone apps directly to consumers instead of

through its App Store, among other obligations.

"This week, the European Commission designated iPadOS a

gatekeeper platform under the Digital Markets Act. Apple ( AAPL ) will

bring our recent iOS changes for apps in the European Union to

iPadOS later this fall, as required," the company said in a

blogpost.

"The CTF will also apply to iPadOS apps downloaded through

the App Store, Web Distribution, and/or alternative

marketplaces," it said.

The company also said small developers with less than 10

million euros ($10.7 million) in global annual business revenue

will either pay no CTF or a capped CTF during a three-year

period.

Developers with no revenues such as students, hobbyists, and

developers who create a free app without monetization will not

be charged the CTF.

Currently only developers whose apps do not surpass one

million first annual installs per year, non-profit

organizations, government entities and educational institutions

approved for a fee waiver are exempted from the CTF.

($1 = 0.9360 euros)

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