Apple settles lawsuit with $100 million fund for small developers and drastic App Store policy changes

Apple has reached an agreement with small App Store developers following two-year antitrust litigation. As part of the settlement, the company announces massive changes in its storefront policies, along with setting up a fund to support small app developers.

Apple sets up $100 million fund for iOS developers

The Cupertino, California-based tech giant, has revealed the details of its agreement with the plaintiffs of the 2019 case Cameron et al v. Apple Inc. in an official announcement on Thursday. Apple confirmed that it is establishing a “fund to assist small US developers.”

Apple did not mention a specific amount it would allocate for the fund. However, a statement from the Hagens Berman Sobol Shapiro law firm, the appointed lead counsel for the class-action lawsuit, states, “The settlement will result in the creation of a $100 million Small Developer Assistance Fund and important changes to App Store policies and practices.”

iOS app developers who saw an annual earning of $1 million or less from the US App Store between June 4, 2015, and April 26, 2021, will be eligible to benefit from the funding. Apple says this requirement covers more than 99 percent of US iOS developers.

Lawsuit leads to massive changes in App Store policies

Apple has caught some heat over the previous years due to its so-called “anti-steering” policies for developers putting their products on the App Store. Now, the larger part of the lawsuit settlement is leading to massive changes in the App Store policies, specifically with how developers can contact iOS users and how they could collect payments for their apps and other services.

In its statement on Thursday, Apple said it is “clarifying” its rules on how developers can reach iOS users. The tech giant said iOS developers can communicate with customers outside the App Store through other methods, such as email, where they can also discuss “payment methods outside of their iOS app.” Apple also reiterated it would not collect a commission for any app transactions made outside the App Store.

The iPhone maker stated that the developers will still be allowed to set pricing for their apps and services. “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,” Apple added.

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