The deal includes changes in how all developers can
communicate with customers, an issue highlighted by the judge herself in the
"Fortnite" case.
A group of smaller software developers brought the lawsuit
in 2019, alleging that Apple broke antitrust laws with practices such as
charging commissions of up to 30%. The Cupertino, California-based company said
it has reached a proposed settlement that covers U.S. developers that made $1
million a year or less under which the developers release all claims that
Apple's commissions were too high.
Apple is waiting for a decision in the much higher-profile
antitrust case filed by "Fortnite" creator Epic Games. The proposed
settlement on Thursday will need approval from Judge Yvonne Gonzalez Rogers of
the U.S. District Court for the Northern District of California, who is
expected to hand down a decision in the Epic case.
As part of the Thursday deal, Apple said it will make
changes to the App Store, including extending for three years a change made
last year that lowers commissions for smaller developers to 15%.
Developers have long been able to take other forms of
payment outside of their apps to avoid commissions to Apple, and some, like
Netflix Inc eschew Apple's in-app payment system.
But Apple maintains strict rules against developers using
contact information gleaned from customers who sign up via the App Store to
later tell those customers about alternative payment methods, which are often
priced lower because they do not require fees to Apple.
Smaller developers without Netflix's name recognition have
long objected that Apple's restrictions prevented them from establishing direct
billing relationships with customers.
During the Epic-Apple trial in May, Gonzalez Rogers had
criticized Apple's rules, even though Epic had not made them a centerpiece of
its case.
"Apple's hiding of that information in a way that is
not directly reflected to the consumer seems to be anticompetitive," she
said.
Apple said the changes will apply to all developers
globally, not just the class of smaller developers in the United States covered
directly by the settlement. The company will also create a $100 million assistance
fund for small developers.
Steve Berman, managing partner of Hagens Berman, which
represented the developers in the case, said the settlement would bring
"meaningful improvements."
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