Apple Reaches Key Agreement with Class Action App Developers
and Submits to Court
Effectively Allows External Payments
Annual Transparency Reports to Be Published
Establishment of Fund for Small Developers
[Asia Economy Reporter Minyoung Cha] Apple, which has been engaged in legal battles with application (app) developers for several years, has agreed to make its App Store (iOS) operating policies more developer-friendly. The biggest change is the effective allowance of external payments. The agreement also includes provisions such as establishing a fund for small and medium-sized developers and preparing an annual transparency report detailing app approval rejections and deletions.
Agreement on Seven Key Provisions
On the 27th (Korean time), Apple announced through its newsroom that it had reached an agreement with the plaintiffs in the class-action lawsuit, including Cameron, on the "seven key priorities shared by Apple and small developers," and submitted it to the presiding judge. The agreement must be approved by the judge.
iOS developers can share information about payment methods offered outside the app through various communication channels such as email. Developers who use external payments do not have to pay commissions to Apple. Previously, Apple’s in-app payment (using the app market’s own payment system) commission fees reached up to 30%. However, if app developers want to receive user information, user consent is required, and users have the right to refuse.
This is effectively a measure permitting external payments. The IT specialized media The Verge noted, "In the App Store guidelines updated in June, Apple changed the rules to allow developers to communicate with customers outside the app, but using information obtained inside the app to contact users was not allowed," adding, "iOS developers will now be able to contact customers with permission using information collected inside the app."
Report Including Number of Rejected and Deleted Apps Also to Be Prepared
The current structure of the App Store Small Business Program will be maintained for at least three years. Businesses with annual sales under $1 million will continue to receive commission reduction benefits, while larger developers will bear the standard App Store commission fees for app purchases and in-app payments. The App Store search system, based on objective indicators such as download numbers, star ratings, text relevance, and user behavior signals, will also be maintained for more than three years.
Apple plans to expand the number of base prices developers can choose for subscriptions, in-app payments, and paid apps from fewer than 100 to more than 500. This allows developers to continue setting prices directly. Apple will also maintain procedures for developers to appeal if they believe app approval rejections are due to unfair treatment and will provide more detailed guidance on related procedures.
Apple will prepare an annual transparency report based on the App Store information it has provided so far. This report will include objective data such as the number of apps rejected for various reasons, the number of deactivated customer and developer accounts, search queries and results, and the number of apps deleted from the App Store. It will also share meaningful statistics about the app review process.
To support small and medium-sized U.S. developers struggling due to COVID-19 damage, Apple will establish a fund. The target includes developers who held developer accounts between June 4, 2015, and April 26, 2021, and recorded annual sales of $1 million or less from January to December each year in the U.S. App Store. Apple expects that 99% of developers registered in the U.S. App Store will be eligible.
Apple stated, "If the court approves the changes to the App Store, the class-action lawsuit filed by U.S. developers will be resolved," adding, "This agreement will help maintain the App Store as a safe marketplace trusted by users while providing better business opportunities for developers."
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