The Core Technology Fee (CTF) is a component of the EU’s Alternative Business Conditions, acknowledging the value Apple provides to developers. This encompasses tools, technologies, and services enabling them to craft and distribute innovative applications. Developers achieving significant scale (over one million initial annual installations per year in the EU) are subject to CTF. However, nonprofit organizations, government agencies, and educational institutions approved for fee waivers are exempt.
Apple introduces two new conditions exempting CTF:
Income Exemption:
Developers with no income, including those offering free apps with no associated monetization, are exempt from CTF. This provision aims to support students, hobbyists, and nonprofit developers in creating popular applications.
Small Developer Initiative:
Small developers with annual revenue less than €10 million receive free CTF access for three years to foster innovation and business growth. If a developer exceeds one million first-year installs during this period, they remain exempt. However, once global revenue reaches €10-50 million over three years, CTF applies.
We’ll keep you updated on any future revisions to these conditions.
iPadOS
The European Commission designates iPadOS as a gateway platform under the Digital Markets Act. Apple will implement changes to iOS for EU apps onto iPadOS this fall. Developers can opt for Alternative Commercial Terms for EU Apps or adhere to existing terms.
Upon implementation, CTF will apply to iPadOS apps. Users installing the same app on iOS and iPadOS within 12 months receive only one first annual installation, adds NIXsolutions.
For more details, visit the “Understanding the basic technology levy for iOS applications in the European Union” section. Ensure to sign the updated terms if you’ve entered into an agreement on alternative terms for EU applications.
We’ll keep you updated on further developments.