Apple offers app developers a $ 100 million settlement

Apple has offered app developers a settlement agreement, according to The Verge and The Wall Street Journal. The developers filed a class action lawsuit against the company in 2019 due to the lack of alternative payment methods in the App Store.

Apple is proposing to split the $ 100 million among developers who have earned $ 1 million or less “in each calendar year from June 4, 2015 to April 26, 2021.” Each payment can be from $ 30,000 to $ 250,000. The rest of the payments will be donated to the Girls Who Code Foundation.

In addition, the proposed settlement agreement provides for the possibility of settlements in applications presented in the App Store, outside the Apple ecosystem, specifies WSJ. Apple has also pledged to keep the Small Business Program for three years, which allows developers with less than $ 1 million in revenue per year to reduce payment fees from 30% to 15%, writes The Verge.

Developers are also encouraged to set over 500 price points for subscriptions, in-app purchases, and paid apps. So far, there can be only 100 of them.

The agreement does not apply to Fortnite’s broader antitrust lawsuit, which is expected to be resolved shortly. In May 2021, Epic Games held its first court hearings against Apple. The game developer opposed the rules and the 30% commission on the App Store. At the trial, the game studio provided evidence of Apple’s monopoly – internal letters, presentations and other documents. The dispute between Apple and Epic Games began in the summer of 2020 when the developer added direct purchases to the Fortnite game, bypassing the App Store and Google Play mechanisms. In response, Apple and Google removed Fortnite from their stores, and the developer sued both companies.



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