Developers had filed a lawsuit against Apple, claiming the company overcharged them fees for distributing their programs through the iOS App Store.
iOS developers will now be able to inform users about cheaper ways they can pay for digital subscriptions and media. However, they can do so only by emailing their users and not through in-app advertising. The settlement, however, needs to be approved by the judge overseeing the lawsuit.
The settlement allows developers to circumvent Apple’s commission system that generates billions of dollars for the California-headquartered company. Similarly, Apple is also paying $100 million to app makers, ranging from $250 to $30,000 per developer.
However, the iPhone-maker still requires developers to sell apps, in-app items and subscriptions, using Apple’s payment system. This way, Apple will still stake claim to commission cuts ranging between 15% and 30%. The company has committed to continuing the policy for at least the next three years.
[3 minute read]