Apple has announced updates to its app distribution policies in the European Union, now reducing financial barriers for developers through the Core Technology Fee (CTF).
The CTF is part of Apple’s alternative business terms in the EU and is designed to reflect the value provided by Apple’s tools, technologies, and services that assist developers in creating and distributing apps.
Under the new guidelines, Apple says developers who achieve significant scale—exceeding one million first annual installs in the EU—are subject to the CTF. However, nonprofits, government entities, educational institutions, and now developers with zero revenue are exempt from this fee. This exemption is to support students, hobbyists, and other non-commercial developers by allowing them to launch popular apps without having to pay.
Apple is also introducing a 3-year grace period for small developers with less than €10 million in global annual business revenue. During this period, these developers will not be required to pay the CTF, even if they surpass one million first annual installs for the first time.
Should a developer’s revenue grow to between €10 million and €50 million within the 3-year window, the CTF will be applied only after reaching the one million install threshold, capped at €1 million per year.
Remember when the European Commission designated Apple’s iPadOS as a gatekeeper platform under the Digital Markets Act?
Apple now says it will extend its recent iOS changes to iPadOS by fall 2024, aligning it with the new EU regulations. Developers will have the option to adopt these alternative business terms for their apps on iPadOS or continue under Apple’s existing terms.
The CTF will also apply to iPadOS apps downloaded from the App Store, web distribution platforms, and other marketplaces. Apps installed on both iOS and iPadOS within the same 12-month period will only count as one first annual install, helping developers skip potential fee impacts.
Developers are encouraged to review the updated App Install reports in App Store Connect, which now has a fee calculator to let them figure out the new terms.
