What's new for apps distributed in the European Union? Apple has introduced significant changes to its Core Technology Fee (CTF) structure, making it easier for developers to bring innovative fitness apps to the market. Let's dive into what these updates mean for you.

Core Technology Fee Simplification

The CTF is an essential component of Apple's alternative business terms in the EU, reflecting the value the tech giant provides developers through tools, technologies, and services that enable them to build and share amazing apps. At Apple, we believe anyone with a great idea should have the opportunity to share their app with the world. Only developers who reach significant scale (more than one million first annual installs per year in the EU) pay the CTF. Nonprofit organizations, government entities, and educational institutions approved for a fee waiver don't pay the CTF.

To further simplify the process, Apple has introduced two additional conditions where the CTF is not required:

  • First, developers who earn no revenue whatsoever (including creating free apps without monetization) won't need to pay the CTF. This condition aims to empower students, hobbyists, and non-commercial developers to create popular fitness apps without incurring unnecessary costs.
  • Second, small developers (less than €10 million in global annual business revenue*) that adopt the alternative business terms receive a 3-year free on-ramp to the CTF. During this period, if a small developer exceeds one million first annual installs for the first time, they won't pay the CTF. If their global revenue grows between €10 million and €50 million within the 3-year on-ramp period, they'll start paying the CTF after one million first annual installs up to a cap of €1 million per year.

iPadOS Update

The European Commission has designated iPadOS as a gatekeeper platform under the Digital Markets Act. Apple will bring its recent iOS changes for apps in the EU to iPadOS later this fall, as required. Developers can choose to adopt the Alternative Terms Addendum for Apps in the EU that includes these additional capabilities and options on iPadOS or stay on Apple's existing terms.

Once these changes are publicly available to users in the EU, the CTF will also apply to iPadOS apps downloaded through the App Store, Web Distribution, and/or alternative marketplaces. Users who install the same app on both iOS and iPadOS within a 12-month period will only generate one first annual install for that app.

To help developers estimate any potential impact on their app businesses under the Alternative Terms Addendum for Apps in the EU, Apple has updated the App Install reports in App Store Connect that can be used with our fee calculator. For more details, visit Understanding the Core Technology Fee for iOS apps in the European Union. If you've already entered into the Alternative Terms Addendum for Apps in the EU, be sure to sign the updated terms.

Global Business Revenue

When calculating global business revenue, Apple takes into account revenue across all commercial activity, including from associated corporate entities. For additional details, read the Alternative Terms Addendum for Apps in the EU.

Stay ahead of the game with these fitness app development updates. Whether you're a seasoned developer or just starting out, understand how these changes can benefit your business and help you create innovative apps that users love.