Apple got to a proposed settlement in a lawsuit filed against it in 2019 by its developers in the US. The lawsuit accused Apple of inflating the prices of apps and app purchases. As part of the settlement, developers will be able to share more information about how to charge for outside purchases of their iOS application or the App Store. This means from now and on Apple will be informing its users about payment options that aren’t subject to Apple commissions. The settlement also involves more pricing tiers and a transparent report regarding the app review process.
The case was filed against Apple in 2019. The developers Donald Cameron and Illinois Pure Sweat Basketball, said the company restricted its users to only download iPhone apps through its App Store. and that’s how they controlled their users’ actions.
In response to the backlash that occurred after it was announced that developers could share information about their payment methods outside of the App Store, Apple has clarified that they will not be compensated for doing so.
Under the settlement, developers would be permitted to communicate with customers through email and other communication services, which was hard to be done given the App Store’s terms and regulations. They ban developers from using contact information received within an app to communicate with users outside of the app. The settlement will lift this regulation, allowing them to inform consenting users about payment methods that enable them to avoid getting hit with a huge fee for each transaction.
In terms of pricing, Apple said it will increase the number of price points that developers can offer to customers. It also plans to publish a new transparency report that will detail the app reviews and other specifications. The report will include how many apps were rejected during the year, the number of user and developer accounts deactivated, and the number of apps that were removed from the App Store.
In response to the lawsuit filed against it, Apple has created a new fund that will provide payouts to developers who were not able to reach $1 million in annual sales through the App Store during the period from June 4, 2015, to Apr. 26, 2021. This is around 99% of developers in America. According to Hagens Berman, one of the law firms representing plaintiffs in the lawsuit declared that the fund will be $100 million, with payments ranging from $250 to $30,000.
You can stay up to date with the latest legal News and on Lexyom’s Legal News Page.