comscore Apple proposes $100 million settlement, key policy changes to developers in class-action lawsuit
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Apple proposes $100 million settlement, key policy changes to developers in class-action lawsuit

The $100 million settlement will be split among small developers who earned $1 million or less in every calendar year between June 4, 2015, and April 26, 2021.

Apple logo, Apple AR Glasses


A new proposed agreement between Apple and a class-action lawsuit representing US app developers includes a $100 million payout and the company “clarifying” its policies to explain that iOS developers can contact their customers to inform them about alternative payment methods with their permission. Apart from the payment, the change in policy is very important for developers. Also Read - Flipkart explains iPhone 13 order cancellations are 'due to anomalies'

While the change in policy is important it will not have a major impact. To recall, Apple back in June updated its App Store Guidelines, to let developers communicate with customers outside of their apps. However, at the time developers were not allowed to contact users about alternate payment options using information obtained inside the app. If the proposal is approved then they will not have to try to obtain customer data from outside of the app. Also Read - Netflix doubles down on gaming efforts, sets up game studio in Helsinki

Apple in a statement on its official website has said, “To give developers even more flexibility to reach their customers, Apple is also clarifying that developers can use communications, such as email, 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 Store. Users must consent to the communication and have the right to opt-out,” it added. Also Read - Apple iPhone 14 Pro customers reporting 5G connection issues: Check details

The $100 million settlement will be split among small developers who earned $1 million or less in every calendar year between June 4, 2015, and April 26, 2021. Apple in its release is calling this settlement the “Small Developer Assistance Fund.” The website for eligible developers will become operational once the settlement is approved by a judge.

Out of the amount the court filings show the minimum payment ranging between $250 and $30,000. After all the approved claims are passed, the leftover funds will be donated to the Girls Who Code nonprofit.

Other points in the proposed settlement include the perpetual operation of the App Store Small Business Program, publishing of an annual transparency report about the App Store, developers to be able to set more than 500 price points,  the current App Store system to be in place for at least the next three years, and the addition of an unspecified amount and type of additional information about the app appeals process to the App Review website.

  • Published Date: August 27, 2021 3:15 PM IST
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