Apple Begins Paying Developers After Reaching $100 Million App Store Settlement

Apple recently started sending payments to select App Store developers as part of a $100 million settlement it reached in the lawsuit Cameron et al v. Apple Inc., which alleged that Apple had a monopoly on the distribution of iOS apps and in-app purchases. Apple referred to the settlement as a "Small Developer Assistance Fund."

iOS App Store General Feature JoeBlue
Eligible developers were expected to receive a payment between $250 and $30,000 from Apple depending on their total App Store earnings, but actual payments are higher since not all developers submitted a claim, thus increasing each developer's share of the settlement. Only developers in the U.S. who had App Store earnings between June 4, 2015 and April 26, 2021 and submitted a claim by the May 20, 2022 deadline will receive payment.

According to court documents, approximately 67,000 developers were eligible to submit a claim. It's unclear how many claims were submitted.

Apple denied all of the allegations and the settlement is not an admission of wrongdoing by the company. Developers receiving a settlement can no longer sue Apple individually for the same claims brought in the class action lawsuit, including any claim that they were overcharged by Apple as a result of the App Store's fee structure.



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 lawsuit took issue with Apple's standard 30% fee for ‌‌App Store‌‌ purchases, and was largely addressed with the late 2020 announcement of the App Store's Small Business Program that cut the commission that small developers have to pay to 15% going forward.

As part of the settlement, Apple also updated its App Store Review Guidelines to allow developers to use outside-of-app communications like email to share information about payment methods available outside of iOS apps. As always, developers are not required to pay Apple a commission on purchases that take place outside of the ‌App Store‌.

Apple also agreed to maintain the ‌App Store‌'s Small Business Program without any changes for at least three years and made a few other concessions.

In related news, Apple also recently started sending payments to eligible retail employees as part of a $30.5 million settlement to end a long-running lawsuit over employee bag checks. The lawsuit involved nearly 15,000 employees in California who were subjected to off-the-clock unpaid bag searches between July 25, 2009 and August 10, 2015.



Apple claimed that its bag searches ensured employees were not hiding stolen electronics in their personal belongings, and that employees who did not want to be subject to searches could leave their bags at home, but that argument was unsuccessful and a court ordered Apple to pay the employees for the time they had spent in bag searches.

Top Rated Comments

TheYayAreaLiving ? Avatar
6 weeks ago
Funny thing is all that money is going right back to Apple… New iPads, new USB-C Apple Pencil Charging adapter.
Score: 10 Votes (Like | Disagree)
iDarth_Betar Avatar
6 weeks ago

Yeah, screwing over working-class retail employees is exactly like parking your car in the wrong place.
Calm down there, Jumpy. It was a joke based on how little that effects Apples Wallet (pun intended), not against why they have to pay.

I’m all for them paying up.

???
Score: 9 Votes (Like | Disagree)
Apple Knowledge Navigator Avatar
6 weeks ago
Small Developer Assistance Fund? That’s about as believable as a “Special Military Operation” baha!
Score: 8 Votes (Like | Disagree)
iDarth_Betar Avatar
6 weeks ago
Apple having to pay another parking ticket.
Score: 7 Votes (Like | Disagree)
zapmymac Avatar
6 weeks ago
In today’s economy, every bit helps. Death by a thousand cuts, probably won’t really Apple change their ways though. Every bit helps.
Score: 7 Votes (Like | Disagree)
TheWatchfulOne Avatar
6 weeks ago

30% for that alone? Seems really high and greedy. Apple is not a cash-strapped company. They benefit by having developers use their App Store through a non-contentious relationship. They can do that by reducing their requirement of commission.
For that alone? Do you know the cost of such an endeavor?

You have to either rent server space or build your own data centers. I'm guessing Apple does or has done some of each. Amazon web services are expensive.

I know they've built their own data centers. They have to keep those up and running 24/7. That's extremely expensive.

And if as a developer you make less than $1M, they only charge you 15%.

And if you offer your app for free, they eat the cost and don't charge the developer anything.
Score: 5 Votes (Like | Disagree)

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