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Update:
- U.S. District Judge Yvonne Gonzalez Rogers approved a $100 million class action settlement with Apple to resolve app developers’ claims the tech giant committed antitrust violations.
- Apple reached the agreement with around 6,700 app developers last year to end antitrust claims against the company in 2019, according to court documents.
- The developers claimed Apple had made it so its App Store was the sole place an iPhone user could buy an app.
- Developers further claimed Apple imposed what they claimed to be anticompetitive 30% commission fees on all purchases made while in the app, the lawsuit states.
- Some app developers may reportedly receive between $80,000 and $123,000 from the settlement.
Apple class action settlement overview:
- Who: Plaintiff Donald R. Cameron reached a settlement agreement with Apple Inc. for himself and around 67,000 other app developers.
- Why: Cameron alleged Apple was monopolizing the distribution of apps on its devices, including its App Store.
- Where: The class action lawsuit was filed in a California federal court.
(Aug. 30, 2017)
Apple Inc. has agreed to a $100 million class action settlement with software developers who accused the company of monopolizing the market for app development and engaging in anticompetitive practices.
The class action lawsuit was filed in 2019 on behalf of around 67,000 app developers who make less than $1 million per year by selling their applications on the company’s App Store. Class members will receive between $250 and $30,000 each if the settlement is approved.
Apple charged exorbitant commissions for purchases made on the App Store, according to lead plaintiff Donald R. Cameron. Apple has since adjusted its policies and charges a lower commission of 15 percent on sales, as part of its Apple Small Business Program, which it launched earlier this year.
“Apple has committed to maintain the Small Business Program’s 15 percent rate for at least another three years,” developers say. “Apple has also committed to revise its ‘anti-steering’ Guidelines to permit app developers to communicate directly with their customers regarding alternative payment options. Apple has further agreed to institute and maintain a range of structural reforms that will enable developers to better create, distribute, and monetize their apps.”
Apple to pay $100M in antitrust class action settlement with app developers
The tech giant will distribute $100 million into a Small Developers Assistance Fund, which will give independent developers better conditions for commissions and application transactions. The company will also increase the number of price points for developers from 100 to 500, according to details of the proposed Apple settlement.
The company sent out a news release Thursday announcing the changes to the App Stores policies and procedures, pending the settlement’s approval.
“The terms of the agreement will help make the App Store an even better business opportunity for developers, while maintaining the safe and trusted marketplace users love,” Apple said.
Apple was in the news earlier this month after more than 90 civil rights groups asked the company to abandon its plans to install software that could detect sexually explicit material on children’s phones, citing privacy concerns.
Do you believe the new guidelines in the proposed Apple settlement will improve the App Store? Let us know in the comments!
The developers are represented by Steve W. Berman, Robert F. Lopez, Ted Wojcik, Shana E. Scarlett, Benjamin J. Siegel and Ben M. Harrington of Hagens Berman Sobol Shapiro LLP.
The Apple App Store antitrust class action lawsuit is Donald R. Cameron et al v. Apple Inc., Case No. 4:19-cv-03074, in the U.S. District Court for the Northern District of California.
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