Apple said Thursday it will relax some App Store rules in order to resolve a class action lawsuit filed by U.S.-based developers over its store conditions.
Why is it important?: Apple will allow developers to communicate with users about alternative payment methods outside the App Store. It will also set up a $ 100 million fund for small developers and make some other changes to its practices, but maintain its overall commission structure.
As part of the settlement, pending judicial approval:
- Developers can communicate directly with customers about alternative payment options. Customers must consent and have the right to deactivate.
- Apple is committed to maintaining a three-year program that reduces commissions to small businesses.
- Apple will also set a $ 100 million fund for small developers in the U.S., which will range from a minimum of $ 250 to $ 30,000 depending on the size of the developer. Eligible developers are those who earned less than $ 1 million over each of the five years, according to an Apple group that accounts for more than 99% of developers.
- Apple is committed to making sure that search results in the App Store are based on objective criteria.
- Apple will offer more prices for apps. Today there are less than 100, but the company is committed to increasing it to more than 500 options.
- The company will issue a transparency report that will include data on the number of rejected and deleted apps and disabled client and developer accounts.
- With the exception of the small developer fund, the rest of the changes are being made globally.
Between lines: Apple ceded some reasons on issues of interest to developers, but manages to maintain (at least for now) the key structures of its App Store, including the general commission structure of the store, as well as its ban on use rival app stores or in payment mechanisms applications.
- The deal, which is due to be approved by Judge Yvonne Gonzalez Rogers, comes as Apple is pending the resolution of an independent lawsuit filed by Fortnite developer Epic Games, which seeks to force Apple to allow rival payment to apps and store options.
- The same federal judge hears the Apple-Epic case and a sentence can be handed down at any time.
What they say:
- Plaintiffs’ attorney, Steve Berman: “This hard-won deal will bring significant improvements to U.S. iOS developers who distribute their digital products through the App Store, especially to those small developers who bring so much creativity and energy to their work.”
- Apple member Phil Schiller: “We want to thank the developers who have worked with us to reach these agreements in support of the goals of the App Store and for the benefit of all our users.”