Apple’s been increasingly battling with developers over how it manages its App Store.
James Martin/CNET
Apple says it has reached a settlement with a group of developers seeking a class action suit against the tech giant over how it manages its App Store. Among the agreements, Apple said it would share more data with app developers, solidify some rules around communication with customers and establish a $100 million fund to help US developers who make less than $1 million.
“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, said in a statement. “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.”
Though this agreement is separate from Apple’s continued litigation with Fortnite developer Epic Games, the proposed settlement will need approval from its judge, Yvonne Gonzalez Rogers. The case is called Cameron et al v. Apple.
Apple’s move to settle its suit with developers marks the latest twist in its ongoing legal battles over the App Store. Apple’s found itself increasingly battling with app developers over the past few years who feel the tech giant too tightly controls its App Store, the only way users are allowed to install programs on their iPhones and iPads.
While Apple’s settlement is an interesting legal twist in that ongoing drama, it comes as the iPhone maker and Fortnite maker Epic await a ruling from Judge Rogers following their battle in her California court room earlier this year. In that case, Epic is accusing Apple of acting a monopoly, using its power over the App Store to force developers to accept high commission fees of up to 30% for in-app purchases. While that all sounds like a petty argument over who makes how much money when we buy things on our phones, the outcome could upend the way Apple does business and change the way we get and pay for apps on our devices.
Apple isn’t the only company that Epic is fighting with over these issues. The Fortnite game maker also sued Google last year in a similar disagreement over the handling of payments. Lawmakers and regulators have joined in too, pushing Apple to justify its commissions and its tight control over its platform, while probing Google’s behavior as well. Epic didn’t immediately respond to a request for comment on the settlement.
In addition to offering more data, creating a $100 million fund for small developers, and allowing more communication with users by email, Apple also promised it would add more features to its developer program. Among them, Apple said it would allow developers to choose from among 500 different price points for apps and in-app purchases, up from less than 100 before. It also promised it wouldn’t change its Apple Store search system or its small business pricing programs “for at least the next three years.”
Though Apple’s proposed settlement does allow developers to communicate with users by email, the company said it will not allow developers to add information in apps that points people to cheaper subscriptions or cheaper alternatives to pay for things off the app store.