Apple's Plan to Pay $100 Million to Settle Developer Lawsuit Gets Preliminary Approval From Judge

Back in August, Apple said that it would pay out $100 million and make several changes to the App Store to settle a class-action lawsuit brought about by developers, and the settlement offer received preliminary approval yesterday from Judge Yvonne Gonzalez-Rogers, who is overseeing that case in addition to the Epic v. Apple lawsuit.

app store blue banner
Under the terms of the agreement, Apple will create a $100 million "fund," which developers can access based on their historic ‌App Store‌ proceeds. Developers who earned $1 million or less through the U.S. storefront for their apps in every calendar year between June 4, 2015 and April 26, 2021 can receive between $250 and $30,000. Higher payments will be made to those who have participated more extensively in the ‌App Store‌ ecosystem.

Eligible developers will be able to make claims when the settlement receives final approval, and can sign up to be alerted when claims are being accepted through a website created for the lawsuit.

In addition to paying $100 million, Apple agreed to maintain the ‌App Store‌ Small Business Program in its current structure for the next three years, and it will allow developers to use communication methods like email to share information about payment methods available outside of their iOS apps.

Other terms include more ‌App Store‌ pricing options, the publication of an annual transparency report based on ‌App Store‌ data, and tools that allow developers to appeal the rejection of an app. Full details on what Apple has agreed to can be found in our original settlement article.

The lawsuit dates back to 2019, when a group of iOS developers accused Apple of using its ‌App Store‌ monopoly to impose "profit-killing" commissions. The developers were unhappy with Apple's 30 percent cut, an issue that was largely resolved when Apple introduced the App Store Small Business Program and cut commissions to 15 percent for developers making under $1 million in a given calendar year.

Going forward, briefs, papers, and memoranda in support of the final approval of the settlement must be filed by April 29, 2022, and a Fairness and Final Approval Hearing will take place on June 7, 2022. If and when final approval is granted, developers will begin to receive money from Apple.

Top Rated Comments

sw1tcher Avatar
18 months ago

Wow! This is huge!
Not really.

$100 million is only 0.174% of the $57.411 billion in net income Apple took in for fiscal year 2020 ;)
Score: 10 Votes (Like | Disagree)
higgalls Avatar
18 months ago

Another case where Apple could've done the right thing and offer out the "fund" proactively as they have all the sales data. They know who should be getting it yet they wait for people to come forward in the hope they don't. They make them go through a process to put a barrier up. It's poor UX and it shows exactly how money grubbing they've become and the disdain they have for the developers on their ecosystem.
Actually, my guess is that this is probably a legal requirement, because in applying for the fund will probably mean that the developer gives up any legal right to launch their own legal case over apple to try and get a better deal for themselves. These sorts of legal funds happen all the time, and you need to explicitly opt-in. Now I am not a legal expert, so I could be wrong, but that's my guess why this is the case.
Score: 9 Votes (Like | Disagree)
TracesOfArsenic Avatar
18 months ago
Another case where Apple could've done the right thing and offer out the "fund" proactively as they have all the sales data. They know who should be getting it yet they wait for people to come forward in the hope they don't. They make them go through a process to put a barrier up. It's poor UX and it shows exactly how money grubbing they've become and the disdain they have for the developers on their ecosystem.
Score: 6 Votes (Like | Disagree)
firewood Avatar
18 months ago

Apple does in-deed have a Monopoly !
Your opinion doesn't matter to anybody but you. Only the opinion of a trial judge or appeals court with jurisdiction actually might affect Apple, developers, or customers in any way. Latest U.S. court case ruled no monopoly. Under appeal, so you might be right. Or not.
Score: 5 Votes (Like | Disagree)
Wildkraut Avatar
18 months ago
Apple better start repatriating more money... this won't be the last payment they will have to do.
Score: 4 Votes (Like | Disagree)
now i see it Avatar
18 months ago
Compared to the untold billions they’ve made off the App Store, 100 million is a rounding error.
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 16

iOS 16.4 for iPhone Nearing Launch With These 5 New Features

Monday March 20, 2023 11:50 am PDT by
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April. iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
apple park at night 1

Apple 'Tracking Employee Attendance' in Crackdown on Remote Working

Thursday March 23, 2023 3:41 am PDT by
Apple is tracking the attendance of its employees at offices using badge records in order to ensure they are coming in at least three times a week, according to Platformer's Zoë Schiffer. Since April 2022, Apple employees have been operating on a hybrid home/office work policy as part of a gradual return strategy following the pandemic, with staff required to work from the office at least...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Rumor Recap: 10 New Features and Changes to Expect

Thursday March 23, 2023 6:42 am PDT by
While the iPhone 15 series is still around six months away from launching, there have already been plenty of rumors about the devices. Many new features and changes have been rumored for the iPhone 15 Pro and iPhone 15 Pro Max in particular. Below, we have recapped 10 changes rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A1...
dynamic island

iPhone 15 Dynamic Island to Include New Integrated Proximity Sensor

Friday March 24, 2023 12:27 am PDT by
This year, all iPhone 15 models will include Apple's Dynamic Island that unifies the pill and hole cutouts at the top of the display, but there will also be a material change to the feature that wasn't included in the iPhone 14 Pro models. According to a new tweet by Apple industry analyst Ming-Chi Kuo, the proximity sensor on the iPhone 15 series will be integrated inside the Dynamic Island ...
maxresdefault

Nothing Launches $149 Ear (2) Wireless Earbuds to Compete With AirPods Pro 2

Wednesday March 22, 2023 9:48 am PDT by
Nothing today announced the launch of its second-generation wireless earbuds, the Nothing Ear (2), which offer many of the same features as Apple's AirPods Pro 2 at a lower price point. We went hands-on with the Ear (2) earbuds to see whether they're a viable alternative to the AirPods Pro 2 for those who want to save some cash. The Ear (2) earbuds are the successor to the Nothing Ear (1),...
voice isolation

iOS 16.4 Adds Voice Isolation for Cellular Phone Calls

Tuesday March 21, 2023 11:01 am PDT by
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today. Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa. Voice...
TMobile Sprint

Apple Stops Allowing Sprint iPhone Activations, Removes Sprint References From Online Store

Thursday March 23, 2023 12:06 pm PDT by
Apple is no longer allowing customers who purchase an iPhone, cellular iPad, or Apple Watch to activate a device with now-defunct mobile carrier Sprint. Apple has also removed remaining references to Sprint from its online store. When checking out with a new purchase, Sprint is no longer an option for connectivity, a change that Apple appears to have implemented today. Prior to now, Sprint...
airpodsd 3 purple 4

iOS 16.4 Seemingly References New AirPods and AirPods Case

Tuesday March 21, 2023 11:43 am PDT by
The iOS 16.4 release candidate version that was provided to developers today appears to hint at a new set of AirPods that could be coming in the near future. According to @aaronp613, the beta features references to AirPods that have a model number of A3048 and an AirPods case with a model number of A2968. There have been no rumors that new AirPods are on the horizon, and it is early for...