Apple’s $100M Class Action Settlement With App Developers Gets Green Light, Includes Major App Store Changes

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Apple App Store Developers Class Action Settlement Overview:

• Who: Developers sued Apple, alleging the company monopolized the app market in the app store and charged them too much commission.
• What: Apple has agreed to pay $100 million to developers to end the class action, and to change its app store policies, including reducing its commission for small developers.
• Where: The settlement is being considered in a California federal court but will apply to developers nationwide.

A $100 million class action settlement deal made between Apple and small developers who make apps for the App Store has been given the green light, with developers each set to get payouts of between $250 and $30,000.

A California federal judge gave an initial nod to the settlement in an order filed Nov. 16. 

The deal would settle claims filed against Apple, Inc. by plaintiffs Donald R. Cameron, maker of a baby naming app, and Pure Sweat Basketball Inc., a basketball training company, alleging Apple monopolizes the market for apps distributed on its devices.

US District Judge Yvonne Gonzalez Rogers preliminary approval follows more than two years of litigation and five million documents produced during discovery, the order states.

Apple Charged Outrageous Fees, Claimed App Developers’ Class Action 

The app developers had claimed that Apple’s anti-competitive behaviors had ensured its App Store was the only place iPhone users could get apps. It then proceeded to charge 30 percent commission on all in-app purchases. 

The developers are representing a Class of “small” developers who make some revenue, but less than $1 million per year on the App Store. There are about 67,000 of these developers in the United States, the order states. 

All Class Members would get at least $250, with the highest payout being $30,000.

As well as the payout, Apple has agreed to change some of its app store policies. Moving forward, it would allow for a 15 percent commission for US developers who enroll in its Small Business Program. The 15 percent rate would last three years following the signing of the settlement.

Developers would also in the future be able to communicate with their customers about making payments outside the app if the settlement goes ahead.

The class action settlement comes as Apple faces antitrust claims from other parties who use the app store. 

In October, Apple appealed a California federal judge’s ruling that would require the tech giant to update its App Store policies that currently prohibit app developers from using non-Apple payment systems — and the target of the Epic Games lawsuit. 

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The developers are represented by Steve W. Berman, Robert F. Lopez, and Ben M. Harrington of Hagens Berman Sobol Shapiro LLP. 

The Apple Developers Class Action Settlement 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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