Apple Pays $100 Million to Settle Developer Lawsuit and Agrees to Multiple App Store Changes

Apple today announced plans to make several changes to the App Store in order to settle a class-action lawsuit that was brought against Apple by developers in the United States.

app store blue banner
Under the terms of the deal, Apple will let developers use communication methods like email to tell customers about payment methods available outside of iOS apps, and it will expand the price points that developers can offer for apps, in-app purchases, and subscriptions. Apple also plans to create a $100 million "fund" for small developers as part of the settlement, and it will release annual transparency reports on the app review process.

Apple says that the settlement will make the ‌App Store‌ an "even better business opportunity for developers" while maintaining the safety of the ‌App Store‌.

"From the beginning, the App Store has been an economic miracle; it is the safest and most trusted place for users to get apps, and an incredible business opportunity for developers to innovate, thrive, and grow," said Phil Schiller, Apple Fellow who oversees the App Store. "We would like to thank the developers who worked with us to reach these agreements in support of the goals of the App Store and to the benefit of all of our users."

To establish a settlement, Apple and the developers involved in the lawsuit have come to an agreement that "identifies seven key priorities shared by Apple and small developers." Apple will implement the following measures, as outlined in court papers:

  • Apple will maintain the ‌App Store‌ Small Business Program in its current structure for the next three years. Businesses earning less than $1 million annually will continue to pay a reduced 15 percent commission, while developers earning over that target will pay the standard 30 percent commission.
  • ‌App Store‌ search results will continue to be based on objective characteristics like downloads, star ratings, text relevance, and user behavior signals. Apple will maintain the current ‌App Store‌ search system for at least three years.
  • Apple will allow developers to use communications like email to share information about payment methods available outside of their iOS apps. Developers will not pay Apple a commission on purchases taking place outside of the app or the ‌App Store‌. Users must consent to the communication and can opt out.
  • Apple will expand the number of price points available to developers for subscriptions, in-app purchases, and paid apps from fewer than 100 to more than 500. Developers had complained about the $0.99 minimum price available in the ‌App Store‌ and the inability to offer price points not ending in $0.99, so that may change.
  • Apple will maintain the option for developers to appeal the rejection of an app based on perceived unfair treatment. Apple will add content to the App Review website to help developers better understand the appeals process.
  • Apple will create an annual transparency report based on ‌App Store‌ data, which will provide meaningful statistics about the app review process, including the number of apps rejected for different reasons, the number of customer and developer accounts deactivated, objective data regarding search queries and results, and the number of apps removed from the ‌App Store‌.
  • Apple is paying $100 million to developers to settle the lawsuit, and the money is being distributed as part of a "Small Developer Assistance Fund." Developers can claim between $250 and $30,000 based on their historic ‌App Store‌ participation. Eligible developers must have earned $1 million or less through the U.S. storefront for all of their apps in every calendar year in which the developers had an account between June 4, 2015, and April 26, 2021, a figure that encompasses 99 percent of U.S. developers. More information will be provided at a later date, and there is a settlement website, but it is not yet working.

The class-action lawsuit dates back to 2019 when a group of iOS developers accused Apple of using its ‌App Store‌ monopoly to impose "profit-killing" commissions. The lawsuit took issue with Apple's 30 percent cut of ‌App Store‌ sales, and was largely addressed with the late 2020 announcement of the App Store Small Business Program that cut the commission that small developers have to pay to 15 percent.

The developers who filed the lawsuit were also unhappy with Apple's minimum $0.99 purchase price for apps and in-app purchases, and they took issue with the $99 Apple Developer fee.

Apple will be implementing these changes pending approval from Yvonne Gonzalez Rogers, who is overseeing the case. Rogers is also handling the ongoing Epic v. Apple lawsuit.

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

cmaier Avatar
42 months ago

Just be fair, Apple. Let developers earn their paycheck what they really deserve.
Sigh.

Exactly how is apple denying developers their paycheck? Do you mind if I set up a store and sell waffles on your front lawn? Or if I did that do you think you should maybe get a cut of the action?
Score: 58 Votes (Like | Disagree)
cmaier Avatar
42 months ago

“"From the beginning, the App Store has been an economic miracle”

It’s been an economic miracle for Apple; not for most developers.
Not every developer deserves to get rich. I made a ton of money selling apps on the App Store, and am thankful to Apple for giving me the opportunity - without their app distribution, ecosystem, sdks, etc., I wouldn’t have made a dime.
Score: 57 Votes (Like | Disagree)
cmaier Avatar
42 months ago

They knew what they was signing up from the start.
exactly. iOS is the best platform to target for developers because ios users actually spend money.

Why? Because the sdks allow developers to create great apps, and because apple makes it easy to avoid getting ripped off. When you buy an app it doesn’t automatically sign you up for email spam. If you subscribe, you can easily cancel your subscription from one place, without having to call a telephone and escalate through three levels of “customer service” who are paid to prevent you from cancelling. And even though there are exceptions, when you buy an app on the App Store you are much less likely to be downloading a scam app than from other app stores. All this means that customers are much more willing to spend their money. It’s perfectly fair for Apple to demand a cut of sales in exchange for access to these customers.
Score: 39 Votes (Like | Disagree)
cmaier Avatar
42 months ago
Sounds like Apple really didn’t agree to do much new here.
Score: 30 Votes (Like | Disagree)
Michael Scrip Avatar
42 months ago

The developers who filed the lawsuit were also unhappy with Apple's minimum $0.99 purchase price for apps and in-app purchases
So wait... do developers think 99 cents for an app or IAP is too high?

Are developers really itching to sell stuff for 49 cents?

Or do they want the minimum price raised?


and they took issue with the $99 Apple Developer fee.
Again... do they think the Developer Fee is too high?

You get a TREMENDOUS amount of value for your $99 yearly fee.

You're getting all the development tools, API access, testing capabilities, storage, e-commerce, worldwide tax calculations, cloud capabilities, etc. It allows anyone to create and sell apps to a billion potential users.

Read more here ('https://forums.macrumors.com/threads/epic-games-unlikely-to-win-injunction-in-ongoing-fortnite-battle-with-apple-jury-trial-possible.2257511/page-10?post=28966869#post-28966869')...

I'm struggling to think of a situation where the $99/year Developer Fee is a barrier to entry.
Score: 23 Votes (Like | Disagree)
mystery hill Avatar
42 months ago
"From the beginning, the App Store has been an economic miracle”

It’s been an economic miracle for Apple; not for most developers.
Score: 22 Votes (Like | Disagree)