Friday, August 27, 2021
Comparison in the subscription dispute
Apple accommodates app developers
Smaller app developers have not had it easy on Apple’s devices so far: all interaction with users takes place via the iPhone manufacturer’s app store. After a comparison, the company at least partially relaxes the strict rules. This also has an impact outside of the United States.
Apple has agreed on minor changes in a court dispute with developers over the company’s role in app sales on the iPhone and iPad. With the concession in the heated debate, a class action lawsuit by the US developers is to be ended. As the US group announced, in the comparison it will give smaller developers the option of sending app users targeted information about subscription deals outside of the app store. However, this must not happen within the app itself, but must run outside the app – for example by email. So far, Apple has strictly refused to display information about alternative subscription options outside of the app store in the applications.
The out-of-court settlement with the smaller developers, which has yet to be confirmed by the court in Oakland, California, is independent of the spectacular proceedings that the game developer Epic is conducting against Apple. However, both proceedings are led by Judge Yvonne Gonzalez Rogers. Therefore, Rogers’ approval of the out-of-court settlement could be seen as an advantage for Apple in the proceedings against Epic. In the current comparison with the class plaintiffs, Apple was able to fend off central claims from the developers, which are also raised by Epic.
Apple is sticking to high revenue sharing
Apple does not have to allow another app store on the iPhone or iPad, nor does it have to reduce its share in sales by up to 30 percent. A verdict on the Epic case is expected this fall. However, Apple complied with the plaintiffs in terms of pricing freedom: The group is increasing the number of pre-defined price points that developers can set for subscriptions, in-app purchases and paid apps from less than 100 to more than 500. All concessions do not apply only for the plaintiffs from the US but are being introduced worldwide.
In the US, Apple will also set up a fund to support small developers in the corona crisis. Eligible beneficiaries may have a maximum of $ 1 million in revenue from all of their apps in the US store in any calendar year since 2015. The grant is up to $ 30,000.
Apple’s app store system is currently under attack. The EU Commission accuses the iPhone group of unfair competition in the business with music streaming apps such as Spotify. With a lawsuit in the US, the game company Epic wants to ensure that it and other providers can operate their own app stores on the iPhone bypassing Apple. Apple emphasizes that the App Store is a lucrative platform for app developers and at the same time protects users from attempted fraud.
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