Apple will pay $250 to $30,000 in damages to U.S. developers

IT House January 15 news, Apple announced last August plans to pay $100 million to settle a class action lawsuit filed by U.S. developers, starting today, Apple has launched a website for developers to submit claims.

Apple's $100 million will be allocated as part of a "Small Developer Assistance Fund," which developers can claim $250 to $30,000 in damages based on their historical involvement in the App Store. You can now submit a request using the small developer assistance website, which also has tools to estimate the amount of a claim.

Applications that qualify for claims from U.S. developers must meet the following criteria:

It is sold at a non-zero price.

Any other iOS apps or in-app products (including subscriptions) sold through Apple's iOS Store between 2015 and 2021, and any other iOS apps or in-app products (including subscriptions) sold through all relevant developer accounts in each calendar year from 2015 to 2021, earned at or under $1 million through the App Store US Storefront where you have a developer account.

According to the settlement, there are approximately 67,000 qualified developers. Developers with revenues of less than $100 will receive a potential minimum payout of $250, while developers with more than $1 million will be entitled to a $30,000 payout. The minimum payment amount will change based on the total number of claims.

IT House understands that the lawsuit dates back to 2019, when a group of iOS developers accused Apple of using its App Store monopoly to impose commissions that "hurt profits." The lawsuit disputed Apple's 30 percent cut from App Store sales, and Apple largely addressed the problem by announcing the App Store Small Business Program at the end of 2020 to cut the commissions that small developers had to pay to 15 percent.

While paying developers $100 million, Apple agreed to make some other concessions. Perhaps the biggest concession is that Apple will allow developers to share information about payment methods other than iOS apps using communication methods such as email. For purchases that occur outside the App Store, developers will not have to pay commissions to Apple.

Apple is also expanding the number of subscription price points offered to developers, and the company has agreed to maintain the App Store Small Business program and App Store search without making any changes for at least three years. Apple has also pledged to continue to provide developers with the option to appeal app rejection and will create an annual transparency report based on App Store data covering app rejects, apps removed from the App Store, searching for information, and more.

Developers will need to submit a claim by May 20, 2022 to receive reimbursement from Apple, and a final approval hearing will be held on June 7, 2022. The actual payment date will vary depending on whether there are objections, how long it will take to resolve them, and whether the agreement is finally approved by the court.