Apple to pay $100Mn to resolve developer lawsuit, will alter app store

American multinational technology giant- Apple Inc. plans to make various changes to its App Store in order to settle a USD 100 million lawsuit filed by developers in the U.S.

For the record, the lawsuit dates back to 2019 when certain iOS developers accused Apple of using its Application Store monopoly to levy heavy commissions.

As per the recent agreement, Apple will allow developers to use channels of communication such as email to inform users regarding the availability of various other payment options outside iOS applications along with expanding the price points that will be offered by developers for apps, subscriptions, and in-app purchases.

In addition to above, the California-based entity will include the institution of a USD 100 million ‘Apple Small Developer Assistance Fund’ and will provide annual transparency reports on the application review process.

According to a statement by Apple, the latest settlement will help App Store offer an enhanced business platform for developers along with ensuring the safety of the store.

To reach the point of settlement, the company and developers that are a part of the lawsuit have agreed on certain conditions that identify key priorities shared by both Apple and small developers.

The technology company is expected to implement the following measures, as mentioned in the draft submitted to the court:

  • Apple will continue to maintain the App Store Small Business project for the next three years. Businesses that earn less than USD 1 million each year will continue to pay a lowered commission of 15%, while developers who earn more than the target will pay the fixed 30% commission.
  • The firm will allow developers to use communications such as e-mail to share important information regarding various payment methods outside iOS apps. The developers will not pay commission to Apple for the transactions taking place outside the apps.
  • The results on Apple Store will continue to be based on objective characteristics like star ratings, text relevance, no. of downloads, and user behavior signals.

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By Priya Deshmukh

Priya started her professional journey with a career in content writing. Endowed with an MBA degree in Marketing, she believes in the power of content and its prominence in today’s fast-paced world of online marketing. Priya writes news articles for across business, technology, healthcare, and other areas of interest.