In a significant policy shift, Apple has announced the extension of its Core Technology Fee to iPadOS applications, alongside its existing application on iOS. This development is part of Apple’s broader adaptation to the European Union’s Digital Markets Act (DMA), which mandates greater openness and competition among digital platforms.
Understanding the Core Technology Fee
Introduced initially for iOS apps, the Core Technology Fee is a charge of €0.50 levied on each first annual install of an app exceeding one million downloads within the EU. This fee is applicable to apps distributed through the App Store or alternative marketplaces, reflecting Apple’s ongoing investment in its technology ecosystem which supports app developers.
New Opportunities and Compliance Challenges
Under the new terms, developers have the flexibility to use alternative payment processors without incurring additional costs from Apple, promoting a more competitive environment. This includes a reduced commission on transactions and a payment processing fee for those opting to use Apple’s services. The updated business model aims to balance compliance with the DMA while safeguarding user security and privacy, a priority underlined by the introduction of new features such as app notarization and enhanced malware protections.
EU’s Response and Industry Implications
However, this fee has attracted scrutiny from EU regulators, with concerns about its compliance with the DMA’s stipulations for fairness and non-discrimination. High-profile industry players have criticized the fee as potentially anti-competitive, arguing that it could deter developers from embracing the benefits of the DMA.
Preparing for Change
Developers affected by these changes are advised to familiarize themselves with the new entitlements in Xcode, ensuring compliance with the entitlement and metadata requirements for apps targeting EU users. Additionally, Apple has provided resources like a fee calculator and updated reporting tools in App Store Connect to help developers assess the impact of these terms on their operations.
This strategic extension represents Apple’s effort to navigate the complex regulatory environment in Europe, balancing developer needs with compliance and user protection. As the situation evolves, both Apple and EU regulators will likely continue to adapt their strategies to meet the digital market’s demands and legal requirements.
