ETAG - does periodical checking it, if changed utilize rate limit?

currently we’re working on API, allowing SAGE products to communicate with Companies House.

By periodically checking for change through ETags (no changes => the same ETag returned), we can avoid download the full catalogue unnecessarily.

Does it mean, that checking ETag does not utilize rate limit, as it does not download full set of data?

You will still be subject to the rate limit and our fair use policy.
The API is not intended for the use you have described, you should be using the streaming API

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I understand, that The basic company information stream also utilizes the limit 600/5mins. Please, correct me if I am wrong.

There is no limit on the stream, is does not work the same way as the API.
You just consume the data that we produce as fast as you like.

Thank you! Really appreciated!