Understanding the Core Technology Fee for iOS apps in the European Union

The Core Technology Fee (CTF) is an element of the new business terms in the European Union (EU) that reflects the value Apple provides developers through ongoing investments in the tools, technologies, and services that enable them to build and share innovative apps with users. Developers can choose to remain on the App Store’s current business terms or adopt the new business terms for iOS apps in the EU.

Developers operating under the new business terms for EU apps have the option to distribute their iOS apps in the EU via the App Store, Web Distribution, and/or alternative app marketplaces. These changes will also come to iPadOS later this fall. Developers operating under the new terms can also use alternative payment processors in their apps in the EU on the App Store across Apple operating systems. For developers who choose to agree to the new business terms, membership in the Apple Developer Program includes one million first annual installs per year for free for apps distributed from the App Store, Web Distribution, and/or alternative marketplaces.

Apple provides conditions where many developers do not pay the CTF. Developers whose apps do not surpass one million first annual installs per year and nonprofits, educational institutions, and government entities with an Apple Developer Program fee waiver do not pay the CTF. The CTF is also not required for developers with a no revenue business that offer free apps without monetization. Additionally, small developers (earning less than €10 million in global business revenue) are provided with a 3-year free on-ramp to the CTF and won't pay the CTF for first annual installs that exceed the threshold within a 3-year period.

The CTF aims to meet the needs of both users and developers. Since a first annual install is only counted once per account, developers can deliver unlimited feature updates, bug fixes, and security patches to users for 12 months with no additional fee, regardless of how many devices the user has. And when users upgrade or replace their devices, developers aren’t charged when users reinstall their apps through an iCloud transfer.

Learn more about the Alternative Terms Addendum for Apps in the EU

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How the fee works

The CTF is based on the number of first annual installs for an app in a 12-month period.

• First annual install. This is the first time an app is installed by an account in the EU in a 12-month period. After each first annual install, the app may be installed any number of times by the same account for the next 12 months with no additional charge. A first annual install may result from an app’s first-time install, a reinstall, or an update from any iOS app distribution option — including the App Store, an alternative app marketplace, TestFlight, an App Clip, volume purchases through Apple Business Manager and Apple School Manager, and/or a custom app.
• One million free first annual installs. Membership in the Apple Developer Program includes one million first annual installs per year for free for apps distributed from the App Store, Web Distribution, and/or alternative marketplaces.
• Fee for each first annual install over one million. Developers pay a CTF of €0.50 for each first annual install over one million in the past 12 months.

Apple provides many conditions where developers do not pay the CTF:

• Developers whose apps do not surpass one million first annual installs per year.
• Nonprofit organizations, accredited educational institutions, or government entities with an Apple Developer Program fee waiver.
• Developers that earn no revenue whatsoever. This includes offering a free app without monetization of any kind (physical, digital, advertising, or otherwise). This is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.

To support small developers, we provide a 3-year on-ramp to the CTF to help them create innovative apps and rapidly grow their business:

• Small developers (earning less than €10 million in global business revenue) who haven’t previously exceeded one million first annual installs are provided with a 3-year free on-ramp to the CTF. During this period that starts once a developer signs the Alternative Terms Addendum for Apps in the EU, they won't pay the CTF for first annual installs that exceed the threshold so long as they continue to earn less than €10 million in global business revenue within the 3 years.
• If a small developer grows to earn between €10 million and €50 million global annual business revenue within this 3-year on-ramp period, they’ll start to pay the CTF after one million first annual installs up to a cap of €1 million per year. After 3 years, they will pay for each first annual install after the initial one million first annual installs per year.
• To qualify for these terms for up to 3 continuous years, developers must declare their global business revenue is in an eligible tier annually. After 3 years, they will pay for each first annual install after the initial one million first annual installs per year.

Important note: You must declare your revenue before your first app surpasses one million first annual installs in order to receive these on-ramp benefits. If any of your apps exceed one million first annual installs before you declare your revenue, you will not be eligible. To declare your revenue, the Account Holder of your Apple Developer Program membership can select their global annual revenue when agreeing to the Alternative Terms Addendum for Apps in the EU, when renewing their Developer Program License Agreement, or at any other time.

Developers of alternative app marketplaces pay the Core Technology Fee for every first annual install of their app marketplace, including installs that occur before one million.

To help developers understand the potential impact of the new business terms on their app businesses, Apple is sharing a fee calculator tool and new reports.

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First annual installs

The first annual install of an app takes place the first time it’s installed on iOS by an Apple account in the EU in a 12-month period. Each first annual install initiates a 12-month period of unlimited installs for that app by the same account at no additional charge. Once the period ends, the next install counts as a first annual install and starts a new 12-month period of unlimited installs for that app by the same account.

Apple only counts first annual installs of an app that occur after the developer adopts the new business terms. Under these terms, developers can continue to deliver app updates as needed throughout the year and users can continue to receive essential updates, as well as new features and improvements that provide the best experience.

Only certain kinds of installs can be considered a first annual install, such as the first time an app is ever installed, redownloads of an app that was previously installed, and app updates, as long as they start a new 12-month period. Other installs, such as reinstalls of offloaded apps, iCloud transfers, and auto-downloads onto additional iOS devices by the same Apple account in the EU won’t be considered first annual installs. Only installs on iOS are considered first annual installs and, when these capabilities are introduced to iPadOS later this fall, installs on iPadOS will also count. However, 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. Learn about what can be considered a first annual install.

For example, let’s say that in April 2024, an Apple account in the EU installs Forest Explorer for the very first time on iOS. This is considered a first annual install and it starts a 12-month period when the developer can deliver an unlimited number of installs of that app to that account without generating an additional first annual install. Once the 12-month period ends, the next install counts as a first annual install and starts another 12-month period of unlimited installs for that app and account.

Apple has designed app installation capabilities for developers that align with our strong stance on privacy, ensuring that individual user data is protected and that app installation data is not shared with developers in a way that can identify individual users. Information about an app’s first annual installs is also not shared with other developers.

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Calculating the monthly fee

The Core Technology Fee is calculated by looking at the number of first annual installs in the past 12 months. On a monthly basis, developers are only billed for one-twelfth of the Core Technology Fee for each first annual install in excess of one million. If an app has fewer than one million first annual installs, there is no Core Technology Fee for that app that month.

For example, let’s look at the Forest Explorer app for the month of August. Apple looks back 12 months and considers the five months under the new business terms. In this case, the Forest Explorer app has generated 1.05 million first annual installs through the current month. In August, Apple only charges one-twelfth of the Core Technology Fee owed for the 50,000 first annual installs over one million, resulting in an amount of €2,083.33 due for that month. The developer will receive an invoice for the month of August presenting the monthly fee.

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Taxation, billing, and payments

As is standard for business transactions, the Core Technology Fee does not include taxes. You may see any applicable taxes, as required by tax law, added as new lines on your invoice. Taxes may apply in certain countries and/or regions, including but not limited to, value-added tax (VAT), sales and use tax, goods and services tax (GST), and consumption tax. For details, view the Alternative Terms Addendum for Apps in the EU.

Generally, the applicability of tax depends on a combination of factors:

• Your business location (your legal entity address provided when enrolling in the Apple Developer Program).
• Tax information that you provide to Apple (such as valid tax ID, exemption status, etc.).
• The billing Apple legal entity. For details, view documentation.

If you have questions, consult your tax adviser.

Developers who owe a Core Technology Fee in a given month will receive an invoice by the 15th day of the following month and will need to provide payment within 30 days of receiving the invoice. You can pay directly from your bank using a unique, virtual routing number for your developer account that’s provided on the invoice. Please note that late payments accrue interest and nonpayment may result in the offset of App Store In-App Purchase proceeds owed to you, removal of the app from the App Store, or removal from the Apple Developer Program.

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Resources

Take advantage of new resources to learn how the Core Technology Fee may apply to your business if you adopt the new business terms in the EU.

Calculating the potential fee

Apple has prepared a fee calculator to help you put the new business terms into context and understand how first annual installs may lead to a Core Technology Fee. You can also use data in Sales and Trends to apply these terms to your historical performance using data from the 2023 calendar year.

• Fee calculator

New reports in App Store Connect

If you’ve agreed to the new business terms for EU apps, you’ll be able to view additional reports related to your first annual installs and associated monthly financials. Reports in Sales & Trends let you monitor your first annual installs on a regular basis and determine whether any of your apps exceed one million first annual installs. For apps that exceed one million, monthly financial reports appear in Payments & Financial Reports to show the details of the fee owed.

• App Store Connnect Help

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Q&A

First annual installs

What if someone downloads my app on multiple devices within a 12-month period?

We only count one first annual install per app per Apple account in the EU in any 12-month period. For example, if someone has two iPhones and installs your app on both phones, within a 12-month period using the same account, Apple only counts one first annual install.

Will I be charged if someone upgrades their iPhone and transfers my app to their new device?

No. iCloud transfers are never considered a first annual install, even if more than 12 months have passed since that account installed your app. Learn about what can be considered a first annual install.

What if a first annual install occurs in the middle of a month?

Each first annual install is attributed to a particular month, regardless of the day it occurs. For example, since first annual installs occurring on May 1 and May 15 both take place in May, their 12-month period ends on April 30 of the following year.

How is my fee impacted if someone installs an app from the App Store, then installs it again later from an alternative app marketplace or a developer’s website?

As long as the app is installed by the same Apple account in the EU within 12 months of the first annual install, subsequent installs are free, even if the app is installed from a different source. For example, if someone installs your app for the first time from the App Store, deletes it, then reinstalls it from an alternative app marketplace within 12 months of their first annual install, you won’t be charged again for the subsequent install.

What happens if I have fewer than one million first annual installs in the past 12 months?

If you have fewer than one million first annual installs in the past 12 months, you won’t pay a Core Technology Fee that month.

What kind of apps are counted?

Only installs on iOS by Apple accounts in the EU may be counted as first annual installs. This fall, when Apple’s changes to comply with the DMA are introduced to iPadOS, installs on iPadOS will also count. However, 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. Automatic installs of universal purchase apps onto platforms such as macOS, tvOS, visionOS, and watchOS are not counted as first annual installs. And if someone installs an iOS-only app onto a compatible device, such as an Apple Vision Pro, that install also won’t count as a first annual install.

How does Apple count first annual installs for volume purchases from Apple Business Manager or Apple School Manager?

Apps purchased using Apple Business Manager or Apple School Manager may only be counted as first annual installs once the app is installed. For example, if someone purchases 100 copies of your app through Apple Business Manager and only installs 20 of those copies onto their corporate devices, only those 20 installs may be counted as potential first annual installs.

Cases where the CTF is capped or not required

Who is not required to pay the CTF?

Developers whose apps do not surpass one million first annual installs per year.

Nonprofit organizations, accredited educational institutions, and government entities approved for a fee waiver.

Students, hobbyists, and other non-commercial developers with a no revenue business. Their apps must be free apps without monetization and unrelated to revenue of any kind (physical, digital, advertising, or otherwise). To distribute apps without paying the CTF, they’ll need to declare annually that they don’t earn revenue.

Small developers (less than €10 million global annual business revenue) are eligible for 3-year exemption to the CTF. If they grow to earn global business revenue between €10-50 million, they will receive a €1 million cap on the CTF within the 3-year on-ramp. To distribute apps under these terms, they’ll need to declare their global business revenue annually.

When does the 3-year on-ramp period start?

The continuous 3-year period begins once you sign the Alternative Terms Addendum for Apps in the EU. During the 3-year period, if your revenue remains below €10 million, you will not pay the CTF. If your revenue grows to between €10 million and €50 million, you will pay the CTF after one million first annual installs up to a cap of €1 million. To continue distributing apps under these terms, you’ll need to declare your revenue annually. After the 3-year period of paying no and/or reduced CTF, you will begin paying the CTF for each first annual install after the initial one million first annual installs per year.

For example, if you sign the new terms in May 2024 and none of your apps have more than one million first annual installs, then you will not pay the CTF. If in August 2025 one of your apps crosses one million first annual installs, then these benefits will start applying, if you qualify based on your global business revenue.

You must declare your global annual revenue before your first app surpasses one million first annual installs in order to receive these on-ramp benefits. If any of your apps exceed one million first annual installs before you declare your revenue, then you will not be eligible.

If my apps all drop below one million first annual installs, will the on-ramp period of 3 continuous years pause?

No. The free on-ramp for 3 continuous years begins once you sign the Alternative Terms Addendum for Apps in the EU, and expires 3 years later, regardless of your apps’ activity thereafter.

How do I declare my revenue?

To declare your revenue, the Account Holder of your Apple Developer Program membership can select their global annual revenue category when agreeing to the Alternative Terms Addendum for Apps in the EU.

When declaring your global annual revenue category, you must take into account:

• Revenue from business activity globally inside or outside of your app (physical, digital, advertising, or otherwise); and
• Revenue from associated corporate entities. An associated corporate entity is any other entity that controls, is controlled by, or is under the control of your company.
• Please convert any global business revenue in other currencies using the spot rate at the end of the period.

What period does the global business revenue apply to?

The global business revenue must be from the most recent 12-month financial statement on the companyʼs record. If this is not available, you may declare your global business revenue from the last 12 months.

How often must I declare my revenue?

Small developers need to declare they are within a global annual revenue each year to maintain their eligibility for the 3-year on-ramp to the CTF.

Can a developer who participates in the free on-ramp to the CTF for 3 years also qualify for a €1 million cap for 3 years in the future?

Developers who declare revenue less than €10 million may remain in the free on-ramp or the €1 million cap tier for a total of 3 years as they grow their business. During this period of 3 continuous years, developers may move between tiers as their business changes. After 3 years, they will be charged for each first annual install after the initial one million first annual installs per year.

Is a developer that earns between €10 million and €50 million in global annual revenue eligible for the €1 million cap on CTF for 3 years?

Developers are only eligible for the cap if they entered the 3-year on-ramp to the CTF as a small developer earning less than €10 million in globally annual revenue first, and then grew to earn between €10 million and €50 million in global annual revenue afterwards during the 3-year period.

Should I declare my revenue if I’m a small developer, and none of my apps are above one million first annual installs?

We strongly recommend that small developers declare their revenue, even if none of their apps are above one million first annual installs, so that they can receive the appropriate benefits if any of their apps later exceed that threshold. If any of your apps exceed one million first annual installs before you declare your revenue, then you will not be eligible for the on-ramp benefits.

As an individual developer, what kind of revenue do I need to declare?

To participate in the 3-year on-ramp to the CTF, you must declare your global business revenue category annually, which should include all revenue earned worldwide from your commercial activities. This excludes personal income that is earned for reasons unrelated to your apps or work as an app developer.

If I agree to the alternative business terms, will my free on-ramp to the CTF for 3 continuous years automatically start?

No. You must also declare your global annual revenue category to determine your eligibility for the free on-ramp to the CTF.

Is the free on-ramp to the CTF for 3 years applied per app or per developer account?

The continuous 3-year period applies once per developer account. If your account’s 3-year free on-ramp to the CTF has expired, then the CTF will apply to each app in your account that exceeds one million first annual installs from that point forward.

Does the free on-ramp or €1 million cap for the CTF apply to alternative app marketplaces?

Alternative marketplace apps are not eligible for the on-ramp and pay the CTF for every first annual install of their app marketplace, including installs that occur before one million. Developers of marketplace apps that meet the eligibility requirements of the on-ramp for small developers may apply the on-ramp benefit to their apps that are not marketplaces.

Do I automatically qualify for the on-ramp to the CTF if I’m already enrolled in the App Store Small Business Program?

No. Additional enrollment is required. The App Store Small Business Program features a reduced App Store commission rate on paid apps and In-App Purchases distributed on the App Store in 175 territories. Program eligibility is based on your total App Store proceeds, which are your sales net of Apple’s commission and certain taxes and adjustments.

The CTF is a separate fee for each first annual install over one million for apps distributed in the EU via the App Store, Web Distribution, and/or alternative app marketplaces. Eligibility for the free on-ramp and/or cap for the CTF is based on your global business revenue and whether your apps have ever exceeded one million first annual installs.

Reporting

I’m seeing two report versions when I download my Historical App Install reports. Which one should I use?

Report version 1_1 will include first annual install data from both iOS and iPadOS, whereas report version 1_0 only includes data from iOS. We recommend using report version 1_1 in order to understand how installs across iOS and iPadOS may impact the fees you owe.

Why do the Historical App Install reports contain data for some of my apps, but not all of my apps?

Apps must have received at least one install from an Apple account in the EU on iOS or iPadOS in 2023 in order to appear in the Historical App Install reports.

When I try to download the Historical App Install reports, there’s a message that says “Your apps did not generate any data for this report in the selected reporting period.” What does this mean?

If none of your apps generated any installs in the EU on iOS or iPadOS in 2023, you’ll receive this message when you try to download your Historical App Install reports.

My app launched this year, but I’m seeing reinstalls and updates appear as first annual installs in my reports. Why is this happening?

In some cases, users may first install your app in regions outside the EU or on devices other than iPhone before downloading your app on iOS in the EU. Since first annual installs can only occur on iOS in the EU and these users may have already installed your app outside iOS or the EU, these first annual installs may appear as reinstalls or updates.

Data integrity

How does Apple know how many installs my apps are getting?

Apple provides secure installation APIs that can be called by the App Store, Web Distribution developers, or alternative app marketplaces to request the installation of iOS apps. This API, along with a signal when the installation is complete, enables Apple to accurately count how many times an app is installed.

How will Apple protect developers from install spam?

Apple already takes a number of steps to prevent fraud and scams and protect developers’ intellectual property. Apple is implementing additional measures to monitor, detect, and prevent install abuse, including:

• An install verification mechanism to ensure that all installs come from real Apple devices.
• Limits on the number of first annual installs that can come from a single device.
• Investigating, and potentially terminating, user or developer accounts that engage in suspicious behavior.

If a developer believes that their app’s install count was inflated by install spam, they’ll be able to contact us.