Apple has confirmed that in the EU, apps for Apple iPads running iPadOS will have the same rules, and will be subject to the same “Apple Tax”, as those for iPhones running iOS. The iPhone maker has further indicated that users installing the same app on the iPhone and the iPad will be considered as a single install, which should help developers.
iOS and iPadOS apps to get the same Apple Tax treatment in the EU
Apple has been making some fundamental changes to its iOS App Store operational in the EU. Essentially, the company has obliged with the European Union (EU) rules.
According to the EU’s directive, Apple opened up its iOS App Store to third-party payment mechanisms. The company even allowed “side-loading” apps in iOS, and the iPhone’s onboard NFC chip will eventually allow third-party tap-to-pay apps.
Apple’s iOS App Changes in the EU Coming to iPad https://t.co/UMHaSkGrWf pic.twitter.com/dYmQLhzE8M
— iPhone in Canada (@iPhoneinCanada) May 2, 2024
What this essentially means is that Apple iPhone owners can confidently install apps from external (non-App Store) sources. Moreover, developers would be able to ask for payment without having to go through Apple’s payment gateway.
Apple has confirmed that these same regulations will apply to apps meant for iPad tablets. Specifically speaking, EU developers, making apps for the iPads sold in the EU, will be able to distribute iPad apps outside of the App Store using alternative app marketplaces or websites, MacRumors has reported. The European Commission recently said that iPadOS is also a gatekeeper platform. Hence, Apple could be making the changes proactively.
NEWS: Apple confirms that iPadOS will incorporate DMA-style changes later this year after the iPad’s software was designated as a gatekeeper by the EU. Presumably with iPadOS 18, users will be able to download apps on the iPad via alternative marketplaces and web distribution. pic.twitter.com/GCxRsnxHdS
— Supercharged (@spercharged) May 2, 2024
How much will iPad app developers in the EU pay?
Apple currently charges a 30% commission for every transaction that takes place on the Apple App Store. This Apple Tax was lowered for developers who make less than a million dollars in a single year.
After the EU’s ruling, which hinges on the Digital Markets Act (DMA), Apple tweaked its commission policies. The company started charging a “Core Technology Fee”. Several companies have claimed that Apple’s revised charges are quite close to the old Apple Tax regime.
In the EU, Apple takes a cut of 17% on app sales and that will decline to 10% for most developers and subscriptions after the first year. Apple does spare iOS app developers who make less than a million dollars every year. And this will be extended to the iPad app developers.
Apple Affirms Adoption of EU DMA Regulations for iPad 😑
Apple stated that it will introduce the ability to install third-party app stores, apps from external sources, and choose and utilize third-party browsers on the iPad.
These features are expected to be implemented this… pic.twitter.com/B7bkyRUVdj
— 𝗟𝗜𝗔𝗡𝗗𝗥 (@TechLiandr) May 2, 2024
Apple will charge the Core Technology Fee (CTF) for apps that developers choose to distribute outside of the App Store and have more than one million first annual installs. However, Apple is offering a reprieve to developers who offer the same app for an iPhone and an iPad.
Technically, iPhone and iPad owners may download the same app twice. Apple has confirmed that if this happens, it will treat this as a “single install” as far as CTF calculations are concerned.
In other words, users who install the same app on their iPhone and iPad, in 12 months, will only generate one first annual install. Needless to say, this should help developers stay below the CTF threshold.
It is important to note that Apple has made these changes only for EU app developers. Moreover, the relaxed laws of distribution would be restricted to the EU region.
