Apple will allow app developers to educate their users about alternatives to in-app payments for digital and media subscriptions. It seems little, but in its own way it is a revolution, since it is exactly about this that a legal dispute with Epic Games, the company that produces the very popular game, was born Fortnite, as well as an EU antitrust investigation launched by Spotify. The proposal is part of a preliminary agreement for a class-action action initiated in 2019 by app developers Donald Cameron and Illinois Pure Sweat Basketball, who accused the company of anti-competitive practices for allowing iPhone app downloads only through the Internet. ‘App Store. But the judge who deals with it is the same, Yvonne Gonzalez Rogers, so it is not excluded that the agreement may also have repercussions on the Apple vs Epic Games case.
Apple has so far banned iPhone app creators from sending users emails with information on how to pay for services outside of the app, a practice that would have avoided App Store fees. With the current change, a new avenue opens up for developers to encourage users to use other forms of payment (such as Paypal or other proprietary platforms), provided they obtain the explicit consent of consumers, who can at any time choose not to receive more communications. Apple agrees to forgo its share of revenues (between 30 and 15 percent of the proceeds, depending on whether the developer bills more or less than a million dollars), and this could translate into lower prices for users for users. purchases in the app, while for those who produce apps it would be an additional income opportunity.
The Cupertino company thus responds to a concern expressed in the previous hearings of the Epic-Apple trial by Gonzalez Rogers, who asked why it was not possible to provide different payment options within the apps, while physical retailers can accept various credit cards in addition to cash. Apple’s proposal only allows for third-party email and app communications and not in-app notifications, but even so it’s a step forward for developers.
In addition, Apple will expand the pricing options available to developers, from under 100 to over 500, and will publish a new annual transparency report that will share information on the app review process, including the number of rejected apps, the number of deactivated customer and developer accounts, “objective data regarding search queries and results” and the number of apps removed from the App Store.
“Since its launch, the App Store has been an economic miracle; it is the safest and most reliable place for those looking for apps, and an incredible business opportunity for those who develop them to innovate and grow, ”said Phil Schiller, Apple Fellow who oversees the App Store. “We want to thank the developers and developers who worked with us to reach this agreement in support of the goals of the App Store and for the benefit of all our users.”
The bottom
And for that too, Apple will create a $ 100 million fund that will pay thousands of app developers covered by the lawsuit in sums ranging from $ 250 to $ 30,000. The company also announced that it will create a fund for qualified developers in the United States who have earned up to $ 1 million through the App Store. This is 99% of American developers, who will be guaranteed payments ranging from a minimum of $ 250 up to $ 30,000. Also in this case, therefore, the major app producers, such as Epic and Spotify, are excluded, who are leading a coalition of developers trying to overthrow Apple’s so-called walled garden.
Judge Gonzalez Rogers will rule on the agreement proposed by Apple on October 12th; the sentence on the Epic Games case is expected at a later date.
Launch of the News Partner Program
Apple also announced further updates to the App Store with the launch of the News Partner Program. Recognizing the importance of ethical journalism and a free, independent press, the program includes new initiatives to expand Apple’s support for this industry. To participate in the program, publishing organizations must provide customers with access to their content in Apple News using the Apple News Format. Participating businesses will benefit from a 15% commission on eligible subscriptions to their news app. Together with the App Store Small Business Program, this new program will help offer publishers various ways to make their content available to Apple customers while supporting local journalism.
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