Apple Agrees To Let Developers Inform Users Of Alternative Payment Methods

Apple has made several concessions to its App Store payment policies in order to settle a class-action lawsuit filed against the company by small US-based developers back in 2019. Note that this is a different lawsuit than the one filed by Epic Games last year but is presided over by the same judge, Judge Yvonne Gonzales Rogers.

One of these concessions is to allow developers to actively inform their users of alternative payment options available to them, such as sending emails to encourage users to pay directly through their website. Apple will still earn commissions from any purchases made directly through the app but not through alternative payment methods. The users, however, must opt-in to these emails and have the option to opt-out should they choose to do so.

Apple will also be launching a $100 million assistance fund for small developers as part of the agreement. To qualify for assistance, their annual earnings from all their apps on the US App Store must not have exceeded $1 million in every year between June 4, 2015 and April 6, 2021. The fund will only be available to US developers at the moment since it was established in response to a lawsuit filed in the US. Apple says they’re thinking about creating a separate assistance fund down the line for small developers in other regions.

The agreement also states that Apple will reduce their commissions from businesses that earn less than $1 million per year as part of their Small Business Program and that they’ll continue to run the program for at least three years. The company will also ensure that their search results continue to be objective-based and that they’ll significantly expand their price points for in-app purchases, paid apps, and subscriptions by the end of next year.

In addition, Apple will also continue to accept appeals for apps rejected based on what developers perceive to be “unfair treatment” and will add more information to the App Review website to help developers better understand the process. They will also be required to present “meaningful statistics” on reviewed apps for transparency.

The agreement has been submitted to Judge Rogers for approval. Meanwhile, we’re still waiting on her final verdict on the Epic Games vs. Apple antitrust lawsuit which concluded in-person trials back in May.