Apple today announced that it had reached a settlement in a lawsuit brought against it by developers from the United States. Although the court has yet to approve the agreement, it includes several changes. The biggest change is that developers will now be able share information about how they pay for purchases via their iOS app and the App Store. This means that they can inform customers about payment options that are not subject to Apple commissions. There are also new transparency reports about the app review process and more pricing tiers.
Donald Cameron and Illinois Pure Sweat Basketball filed a class-action lawsuit against Apple in 2019. They claimed that Apple engaged in anticompetitive practices in allowing iPhone app downloads through its App Store.
Apple today announced that it will clarify that developers can use communication, such as email, to share information regarding payment methods other than their iOS app. Apple will not pay developers a commission for any purchase made outside their app or in the App Stores.
Developers would be able to communicate with customers via email and other communication methods. This was impossible under the App Stores rules which prohibited developers from using information they obtained in an app to contact users beyond the app. This settlement would allow developers to inform consenting users about payment options that will avoid Apples commissions.
Apple announced that it would increase the number of price points for developers, from less than 100 to more like 500. Apple also agreed to publish an annual transparency report, which will include information on the app review process. This includes the number and types of rejected apps, deactivated customer and developer accounts, objective data about search queries and results, as well as the number and number of apps that were removed from the App Shop.
Additionally, the company said that it would create a fund for developers who earn $1 million or less through U.S. App Store. This includes 99% of American developers. Hagens Berman is one of the law firms representing the plaintiffs in the lawsuit. The fund will be $100m with payments ranging between $250 and $30,000.
Cameron et al v. Apple Inc. settlement proposal by TechCrunch at Scribd
