Apple Inc. agreed to agree a class action lawsuit with software developers who challenged the tech giant’s practices in relation to the App Store.
The proposed deal released Thursday marks the latest step in the legal battles Apple has had in recent years with small businesses and larger entities such as Epic Games Inc., Match Group Inc. and Facebook Inc. which distribute applications across their platform. Some of these disputes related to the company’s App Store practices have reached the Supreme Court.
Apple launched the App Store in 2008 and has since intensified its focus on the services business to generate revenue and profits. It has also filed criticism from developers, regulators and lawmakers over alleged anti-competitive practices in relation to the App Store. The company has reduced App Store rates for smaller developers among other concessions and has largely championed its business practices and promoted the economic opportunities of its software ecosystem.
This is what settlement means and how it can shape your relationship with developers in the future.
What were the terms of the agreement?
Apple agreed to resolve the claims (without admitting crimes) that filed a 2019 federal lawsuit alleging it had the power of a monopoly over the distribution of iOS apps and extracted excessive commissions from software developers.