Apple and US Developers Agree to App Store Updates

Apple announced a number of changes coming to the App Store that, pending court approval, will resolve a class-action suit from US developers. The terms of the agreement will help make the App Store better business opportunity for developers, while maintaining the safe and trusted marketplace.

The agreement clarifies that developers can share purchase options with users outside of their iOS app; expands the price points developers can offer for subscriptions, in-app purchases, and paid apps; and establishes a new fund to assist qualifying US developers. The updates constitute the latest chapter of Apple’s longstanding efforts to evolve the App Store into an even better marketplace for users and developers alike.

Following a dialogue, Apple and the plaintiffs in the suit reached an agreement that identifies seven key priorities, which has been submitted to the judge presiding over the case for her approval. In a validation of the App Store Small Business Program’s success, Apple and the developers agreed to maintain the program in its current structure for at least the next three years. Businesses earning less than $1 million annually will continue to benefit from the reduced commission, while larger developers pay the App Store’s standard commission on app purchases and in-app payments.

At the request of developers, Apple has agreed that its Search results will continue to be based on objective characteristics like downloads, star ratings, text relevance, and user behavior signals. The agreement will keep the current App Store Search system in place for at least the next three years. To give developers even more flexibility to reach their customers, Apple is also clarifying that developers can use communications, such as email, to share information about payment methods outside of their iOS app.

Apple will also expand the number of price points available to developers for subscriptions, in-app purchases, and paid apps from fewer than 100 to more than 500. Developers will continue to set their own prices. The company will maintain the option for developers to appeal the rejection of an app based on perceived unfair treatment, a process that continues to prove successful. Apple has agreed to add content to the App Review website to help developers understand how the appeals process works.

Apple agreed to create an annual transparency report based on that data, which will share meaningful statistics about the app review process, including the number of apps rejected for different reasons, the number of customer and developer accounts deactivated, objective data regarding search queries and results, and the number of apps removed from the App Store. The company will also establish a fund to assist small US developers, particularly as the world continues to suffer from the effects of COVID-19.