Apple announced today it has reached a proposed settlement (embedded below) in a lawsuit filed against it by developers in the United States. The agreement, which is still pending court approval, includes a few changes, the biggest one being that developers will be able to share information on how to pay for purchases outside of their iOS app or the App Store — which means they can tell customers about payment options that aren’t subject to Apple commissions. The settlement also includes more pricing tiers and a new transparency report about the app review process.
The class-action lawsuit was filed against Apple in 2019 by app developers Donald Cameron and Illinois Pure Sweat Basketball, who said the company engaged in anticompetitive practices by only allowing the downloading of iPhone apps through its App Store.
In today’s announcement, Apple said it is “clarifying that developers can use communications, such as emails, to share information about payment methods outside of their iOS app. As always, developers will not pay Apple a commission on any purchases taking place outside of their app or the App Stores.”
This would allow developers to communicate with customers by email and “other communication services,” which was difficult to do under the App Store’s rules, which forbid developers from using contact information obtained within an app to contact users outside of the app. The settlement would lift this rule for all app categories, enabling developers to tell consenting users about payment methods that avoid Apple’s commissions.
In terms of pricing tiers, Apple said it will expand the number of price points available to developers from fewer than 100 to more than 500. It also agreed to publish a new annual transparency report that will share information about the app review process, including how many apps are rejected, the number of customer and developer accounts deactivated, “objective data regarding search queries and results,” and the number of apps removed from the App Store.
The company also said it will create a new fund for qualifying developers in America who earned less $1 million per calendar year through the U.S. App Store during the period from June 4, 2015 to Apr. 26, 2021. This represents 99% of developers in America. Hagens Berman, one of the law firms representing plaintiffs in the lawsuit, said the fund will be $100 million, with payments ranging from $250 to $30,000.