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Apple changes several App Store rules as part of settlement

Apple has confirmed in an official statement that it has reached a proposed settlement regarding its App Store, following the filing of a class action lawsuit by developers in the United States back in 2019.

The proposed settlement is still pending court approval, but features a number of sweeping changes to App Store policy that should benefit developers in the long run.

Among the myriad changes, the most significant might be the ability for developers to contact customers directly regarding payment options, along with suggestion platforms that fall outside of the App Store and therefore Apple commissions on transactions.

“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,” the Apple statement reads.

Another key change will see the number of pricing tiers increase fivefold, with the roughly 100 currently available expanding to 500, giving developers greater options in terms of how they wish to price content in the App Store.

“Apple will also 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 will continue to set their own prices,” the statement notes.

Along with the changes to the App Store, Apple has confirmed that it will create a fund for eligible developers impacted by the pandemic, with the main qualifier being those who earned $1 million or less through the marketplace.

“Apple will also establish a fund to assist small US developers, particularly as the world continues to suffer from the effects of COVID-19. Eligible developers must have earned $1 million or less through the US 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 — encompassing 99 percent of developers in the US. Details will be available at a later date,” the statement explained.

While it is pleasing to see a positive outcome for developers in this class action lawsuit, Apple did have a few passive aggressive words to share on the matter.

“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,” he added.

It will be interesting to see how this case’s outcome will impact Apple’s other App Store-related war with Epic Games.

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