Apple settles lawsuit and allows for payments outside of the App Store

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Apple settles lawsuit and allows for payments outside of the App Store

The class-action settlement also includes the creation of a developer fund and the commitment to a more transparent app review process.

On August 26, Apple announced that it finally brought an end to a two-year class action settlement and it will now allow app developers to implement payment systems outside of the App Store, as well as communicate directly with their customers about new payment options. 

The settlement also includes a new scale of pricing tiers and several new changes that will provide developers with more transparency when it comes to the app review process, while lifting the neverending uncertainty regarding the reasons behind app removal.

Learn all the facts:

  • Developers can now communicate with their customers via e-mail and other communication services to share information about payment methods outside of their iOS app. 
  • Users will have to consent to receiving developer’s communications and have the right to opt out of them. 
  • Apple will expand to 500 the number of price points available to developers.
  • To increase transparency, the company will publish an annual report that will shine a light on the app review process, customer and developer account deactivation and apps removed from the App Store.
  • Apple is working towards the creation of a US$100 million fund for qualifying developers in America. Those who submit valid applications will benefit from US$250 to US$30,000. 
  • Apple will maintain its 30% in-App Store purchase commission. However, along with the developer fund, Apple announced in December 2020 it would reduce its commission to 15% for small businesses and for a 3-year period only.

The margin increase available as well as the advances in data democratisation not only favour developers and software development companies, but most importantly will allow entrepreneurs, startups and companies interested in building tech products to create the best versions of their apps, by finally allowing them the choice to choose between different options for their business, something that Apple isn’t very keen of doing.

At December Labs we build user-centric and state-of-the-art mobile apps for up-and-coming businesses, established startups and growth-stage companies. Our mission is to go beyond building products and share our knowledge, advise on the latest trends, technologies and discuss opportunities for their business models. 

Marcelo Cordini
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