Tech giant Apple will pay $100 million and has agreed to multiple App Store changes to settle a class-action lawsuit that was brought against the company by developers in the US.
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. It will expand developers’ price points for apps, in-app purchases, and subscriptions.
The tech giant also plans to create a $100 million “fund” for small developers as part of the settlement. It will release annual transparency reports on the app review process, reports MacRumors.
The company said that the terms of the agreement would help make the App Store an even better business opportunity for developers while maintaining the safe and trusted marketplace users love.
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“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. He oversees the App Store, in a blog post on Thursday.
“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,” Schiller added.
According to the blog post, in a validation of the App Store Small Business Programme’s success, Apple and the developers agreed to maintain the program in its current structure for at least the next three years.
Businesses earning less than $1 million annually will continue to benefit from the reduced commission, while larger developers pay the App Store’s standard commission on app purchases and in-app payments.
The company 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.