Apple has announced a series of slight changes in settlement of a class action by developers, but they don’t seem to go far enough.
Since it introduced the App Store more than a decade ago, Apple has always insisted that payments be primarily made within its ecosystem. Developers have always been able to offer sign-up accounts outside the App Store, of course. But they have not been permitted to email iOS app users to let them know other payment methods exist. This might include an email sent to a customer at the end of a trial period that invites them to sign-up to a service, which they can now do. This presumably means developers can request a person’s email and ask them for permission to receive offers. If they get the go-ahead, they can email offers — but still cannot do so from within their app. Even with these changes, Apple continues to forbid developers from mentioning the existence of alternative payment options on their app description pages. As the legal agreement states: “By informing customers of alternative payment options, developers can avoid paying Apple’s commissions and, moreover, exert competitive pressure on Apple to discipline its pricing.” Apple has also expanded the number of price points it supports in-store. This may help some developers build more resilient businesses, but will also mean consumers must look twice at the prices before buying. There will be over 500 price points. Apple announced a $100 million fund to “assist qualifying US developers.” That means the smallest developers offering apps for sale or subscription will be able to claim $250, scaling up to $30,000 for those making more than $1 million each year. The legal settlement reveals that 85% of Apple’s US developers make $5,000 or less per year via the store. It also reveals that the lawyers will be paid fees of up to $30 million from this fund. The settlement document confirms that Apple announced its small business program as a direct response to the class action.
