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Apps

Apple to allow developers to get payments outside of their apps and the App Store, avoiding Apple’s commission

By Sanuj Bhatia August 31, 2021, 4:00 am
Apple App store featured

Apple, earlier this week, announced that it has reached a proposed settlement in a class-action lawsuit filed by the developers in the United States. Post court approval, the developers in the United States will be able to share information on how to pay for purchases outside of their iOS app or the App Store. Currently, Apple doesn’t allow the developers to directly contact the users informing them about alternate payment methods outside of their apps or App Store — such as PayPal or directly paying via links in the email. However, the Cupertino giant has decided to scrap the policy.

The updated App Store policy will benefit developers as for the people who choose to pay via outside App Store method, Apple will not be able to take the cut of the in-app purchases, which currently sits at 30% or 15% depending on your yearly turnover, and the whole amount will go to the developers.

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Apple is clarifying that developers can use communications, such as email, to share information about payment methods outside of their iOS app. As always, developers will not pay Apple a commission on any purchases taking place outside of their app or the App Store. Users must consent to the communication and have the right to opt-out,” Apple said in a blog post.

The lawsuit was filed by app developers Donald Cameron and Illinois Pure Sweat Basketball back in 2019, who acclaimed that the Cupertino giant engaged in anticompetitive practices.

Apart from letting users use the payment methods the outside App Store, Apple also announced that it will also create a $100 million fund for smaller app developers. Developers who earned less than $1 million a year from June 2015 to April 2021 can claim payouts from as low as $250 to as high as $30,000 from this fund. The developers who’re eligible for the payout can contact Apple via smallappdeveloperassistance.com

Apple is also expanding the pricing tiers available to developers, from fewer than 100 to more than 500. The company also says that it will publish a new annual transparency report that will share information about the app review process, including the details of how many apps are rejected, the number of customer and developer accounts deactivated, and other app review processes details.

Source: Apple

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