Apple agrees to settle a class-action lawsuit and will let developers directly contact customers, inform them about purchase options outside iOS, and more

CUPERTINO, CALIFORNIA Apple today announced a number of changes coming to the App Store that, pending court approval, will resolve a class-action suit from US developers.

Apple 2021-08-27

Context & Ripple Effects

The settlement’s boundary is narrow: contemporaneous coverage described developers using customer contact information to discuss alternative purchase options, while in-app notices about those options remained prohibited. Apple therefore preserves the App Store’s point-of-sale control even as it opens a channel beyond the app.

The commitment moved from settlement term to operating policy when Apple updated its App Store Guidelines to permit those customer communications. That implementation step makes the case an early test of how Apple can alter developer outreach without changing in-app payment flows.

First-order effects

US developers can contact customers they already reach and tell them about purchase options outside iOS, gaining an approved outbound communications channel.
Apple avoids opening in-app prompts for alternative payment methods, retaining control over what customers encounter inside iOS apps.

Second-order effects

Developers with direct customer relationships gain a relative advantage over developers dependent on App Store discovery, because the permitted outreach channel relies on customer contact information.
Apple’s guidelines become the enforcement line for external-payment messaging, shifting developer compliance work from a lawsuit settlement into ongoing App Store policy.

Third-order effects

The later UK class action over App Store fees shows that disputes over Apple’s developer terms can persist across jurisdictions even when Apple grants a limited communications concession in the US.
If this model holds, platform remedies will increasingly separate customer communications outside an app from payment and presentation rules inside it, preserving access-layer control while narrowing developer restrictions.

The trend: App-store disputes are pushing toward targeted limits on platform payment controls rather than wholesale removal of the platform’s in-app gatekeeping.

Discussion

@rjonesy Ryan Jones on x
16. Annnnd there it is: The lawyers will get paid OUT OF THE SMALL DEVELOPERS ASSISTANCE FUND. $30M of $100M of the SMALL DEVELOPERS ASSISTANCE fund goes to the lawyers. 🤣😆😭 I can't. This is just too good. https://twitter.com/...
@benedictevans Benedict Evans on x
Ooh. Apple will now (settling a lawsuit) allow developers to tell users about other payment methods. This is a BIG change. https://www.apple.com/...
@tapbot_paul Paul Haddad on x
App Store search won't change for 3 years? FML! https://twitter.com/...
@starfire2258 Sean Hollister on x
@drbarnard Apple's previous change to the App Store guidelines specifically said you still couldn't contact customers using info you collected inside your app. That changes now. I covered the old change in here. https://www.theverge.com/...
@markgurman Mark Gurman on x
As part of this settlement, Apple keeps its revenue cut, still bans alternative payment methods inside apps, still doesn't allow apps to steer to the web to complete transactions, still bars third party App Store and side loading. A total victory for Apple - if it holds.
@sarthakgh Sar Haribhakti on x
Wow Apple caved! “...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” https://www.apple.com/.…
@jacknicas Jack Nicas on x
All in all, Apple made this minor change, agreed to keep its commission rates flat for at least three years, and paid $100 million to make a potentially large legal headache go away. Seems like a great deal for the richest company in the world. https://www.nytimes.com/...
@jacknicas Jack Nicas on x
I really disagree with the framing around the tech press tonight that Apple's new settlement with developers represents a big concession. I don't see how this changes much. Some companies pretty much already do what Apple says it is suddenly allowing. https://www.nytimes.com/...
@chockenberry Craig Hockenberry on x
So who do I contact at Apple to get the email addresses for our joint customers? https://twitter.com/...
@reckless Nilay Patel on x
Look I hate to be a relentless cynic but *settling a lawsuit* is not “longstanding efforts to evolve the App Store” like this was all part of the plan. Without the lawsuit, there are no changes! https://www.apple.com/... https://twitter.com/...
@rsgnl Joe Rossignol on x
This is a major news publication getting this wrong. Developers can already collect payments outside of the App Store—i.e. Netflix letting customers subscribe through its website. Apple is simply letting developers email their iOS app users to advertise this payment option. https…
@drbarnard David Barnard on x
WHAT?!!! Apple changed nothing and is getting credit as if it was a major concession?! Come on. They used the word “clarify” in that section for a reason. They only clarified what was already possible. https://twitter.com/...
@rjonesy Ryan Jones on x
7. OK so that was Apple's press release. - all clarifications, no changes - Apps can email their users with offers (duh?) - Small Business Program (that we wish would improve) not change for 3 years - pay devs $100M (voluntary self punishment) HUGE nothing-burger so far.
@matthewstoller Matt Stoller on x
I read this settlement differently. It really does nothing meaningful to constrain Apple. On the other hand, class action attorneys did get a $30 million check. https://twitter.com/...
@marcoarment Marco Arment on x
It's so funny watching Apple PR's song and dance, embarrassingly patting itself on the back, after yielding basically zero ground on the App Store's most anticompetitive rules. You know this changes nothing. We know this changes nothing. Who are you performing for?
@joshconstine Josh Constine on x
Get ready for every iPhone app to beg you to pay through its website. Our new UX hell
@drbarnard David Barnard on x
I don't know if I can tear it apart without cussing and getting myself in trouble, but that whole press release was mind bogglingly terrible. Zero actual news other than the developer fund, which they didn't even give details about. https://twitter.com/...
@matthewstoller Matt Stoller on x
@wendyndavis So Apple agrees to doing what it's already doing now, and still does not let them tell customers about different payment options through the app, which is what matters. A big nothing.
@drbarnard David Barnard on x
Wait, I apparently totally misunderstood due to Apple's PR spin. The $68M isn't a program to assist developers similar to the TikTok creator fund. It's the amount the court is forcing them to pay out to class members?!
@rjonesy Ryan Jones on x
3. And final substantive sentence from Apple's press release, they're gonna establish a “fund to assist qualifying US developers”. OK so that's basically just for self “punishment”. $100M Also... pretty sure that's so the class action lawyers can a healthy cut. 🙄 https://twitter.…
@markgurman Mark Gurman on x
This is a massive win for Apple - especially if it sways the judge (the same one as in this class action suit) its way in the Epic trial. They're basically changing nothing of importance and paying “only” $100 million.
@benedictevans Benedict Evans on x
The interesting question to me, when all the dust settles, is whether changing the app store rules is a wealth transfer from Apple to a dozen big game companies (plus Spotify) or whether is it unlocks a whole new wave of apps that weren't possible before. https://www.ben-evans.co…
@drbarnard David Barnard on x
@rsgnl @keleftheriou Even worse, it's really just rescinding the most recent anti-steering rule where Apple tried to prevent developer from emailing customers using emails collected in-app. https://twitter.com/...
@mattbirchler Matt Birchler on x
@TimothyBuckSF That's baffling. Not mentioning it in your app distributed on the App Store is one thing, but preventing it in your emails makes no sense. Especially since you can clearly show lower prices on your website 🙃
@matthewstoller Matt Stoller on x
Not cynical enough. This is plaintiff and defense attorneys colluding to pay off class action law firms for a small amount of money to undermine their clients, in return for which Apple gets some nice headlines. Really gross. https://twitter.com/...
@_inside Guilherme Rambo on x
Apple's PR has been messing up a lot lately. Yet another announcement made with confusing information, causing... confusion https://twitter.com/...
@benedictevans Benedict Evans on x
Important clarification not explicit in the Apple release: only applies in the USA and only applies outside the app. https://www.hbsslaw.com/... https://twitter.com/...
@chad_hurley Chad Hur on x
Looks like @Apple only needs to pay $100M to get out of jail? Monopoly is a great game.
@backlon Dieter Bohn on x
OMG Apple has finally done it. It has decided to let developers tell customers that in-app purchases is not the entirety of how people buy digital things. “Clarifying” tho. Okay. https://www.theverge.com/... https://twitter.com/...
@drbarnard David Barnard on x
Love that @StarFire2258 already updated the headline on @verge to be less generous to Apple. Also... “Apple's press release spins the entire settlement as a generous offer to developers” 🔥 (hint, it's not)
@ballmatthew Matthew Ball on x
@drbarnard @Lucas_Shaw Yeah. It's ultimately pretty marginal and is definitely an attempt to ward away the Epic v Apple judge who suggested she'll enable overt, in-app steering to web
@rsgnl Joe Rossignol on x
P.S. The judge who oversaw this class action lawsuit is Yvonne Gonzalez Rogers, the same judge who presided over the Epic Games v. Apple. Apple strategically increasing its chances of a favorable ruling in the Epic Games trial? (In a press briefing tonight, Apple denied this.)
@adamkovac Adam Kovacevich on x
It scales back Apple's anti-steering rules, which were one of Judge YGR's big concerns at the Epic trial. Taking that issue mostly off the table prob ⬆️ odds of her upholding Apple's ability to set its own app store rules and rates.
@rsgnl Joe Rossignol on x
As part of its class action lawsuit settlement, Apple is “clarifying” that developers like Netflix can email users to let them know about (cheaper) payment methods outside of their iOS app, but still NOT allowing fine print within the app indicating this. https://www.apple.com/..…
@sarthakgh Sar Haribhakti on x
Only Apple can make news by letting devs *email* their customers about other payment methods *outside* of the apps. Their policies around in-app alternative payments or in-apps comms of alternative payments outside of the app remain unchanged
@fnbrunreleased @fnbrunreleased on x
Apple just announced that it's planning to allow App Developers to use their own payment methods, meaning they might get ready to settle with Epic Games in court! https://twitter.com/...
@caseynewton Casey Newton on x
Feels like a desperate bid to hang on to that 30 percent take rate as long as possible https://www.theverge.com/...
@rsgnl Joe Rossignol on x
“Apple will also establish a fund to assist small US developers, particularly as the world continues to suffer from the effects of COVID-19.” This makes Apple sound so charitable, when it's actually the result of fed-up developers suing the company.
@timothybucksf Timothy Buck on x
@mattbirchler Yep, it was an explicit rule: https://twitter.com/...
@brianroemmele Brian Roemmele on x
“Apple will allow developers to email customers to bypass App Store billing”- CNBC A massive shift in Apple billing and platform procedures. No doubt brought about via worldwide investigation of Antitrust. https://apple.news/...
@rsgnl Joe Rossignol on x
Apple agreed to a $100 million settlement to end this lawsuit. Apple calls this a “fund” to assist developers. I think that's just PR spin. Apple didn't just cheerily decide to give developers free money. They got sued. https://twitter.com/... https://twitter.com/...
@jason_kint Jason Kint on x
Hard to tell at this point. Their reduced revenue sharing announcement earlier today was a slight of hand. I need to see everything they're up to because it reads more like a PR offensive to gaslight and I'm not sure where they're hiding the ball but it's there somewhere. https:/…
@newsynick Nick Turner on x
Apple's big settlement with App Store developers wasn't much of a settlement, critics say: “This offer does nothing to address the structural, foundational problems facing all developers, large and small.” https://www.bloomberg.com/... via @markgurman
@patrickmoorhead Patrick Moorhead on x
This changes nothing definitely on: -Epic vs Apple -global antitrust scrutiny of Apple It's a settling of a class action lawsuit and now allows... ISVs to actually communicate... with their own customers... on alternative payment methods. Thanks Apple, so kind! 🤠 https://twitter.…
@timsweeneyepic Tim Sweeney on x
Here's an article that links to the court's .pdf document with the full proposed settlement terms. Developers should read this original source to see exactly what was agreed. It's all there in the pdf. https://www.zdnet.com/...
@rjonesy Ryan Jones on x
1. Apple's press release says “clarifies”, not “changes”. 🤔 This part *sounds* like Apps can use non-App-Store purchase options - but no. It just says Apps can email offers to the customers. Like this example email. That's literally all this says. https://twitter.com/...
@mgsiegler M.G. Siegler on x
Uh, massive Thursday night news dump? https://twitter.com/...
@sarthakgh Sar Haribhakti on x
@kyurieff Apple always let developers accept payments outside the app store. The only minor change here it now allows apps to tell their customers outside of the apps that there are other payment methods. It's mostly a PR stunt. Letting devs email their users wasn't allowed befor…
@tim_stevens Tim Stevens on x
Amazing what the looming threat of legislation can do. https://twitter.com/...
@_inside Guilherme Rambo on x
Apple PR has been doing confusing announcements recently lol You still can't link to other payment methods in-app, only email customers about them. https://twitter.com/...
@iansherr Ian Sherr on x
Interestingly, although it's separate from Apple's legal battle with Epic, the same judge — YGR — will need to approve the settlement. It also very clearly attempts to answer some concerns about steering raised during trial. Tip @Techmeme https://www.cnet.com/...
@jake_k Jake Kastrenakes on x
man, this is just not a real win for developers. you can *maybe* communicate with your users about alternate payment options, but you still can't do any of this in the app! https://www.theverge.com/... https://twitter.com/...
@benedictevans Benedict Evans on x
This is also inevitable, and it won't stop here. The whole 30% requirement is going away.
@benedictevans Benedict Evans on x
But this ‘no solicitation’ rule is in all the antitrust proposals and an important part of the Spotify case - the Spotify iOS app isn't allowed to tell you how to get an account.
@benedictevans Benedict Evans on x
Apple claims they are ‘clarifying’ this rule. That doesn't look like a ‘clarification’ to me. https://twitter.com/...
@keleftheriou Kosta Eleftheriou on x
How does “clarifying” translate to more flexibility?? “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,” https://…
@benbajarin Ben Bajarin on x
Exactly 👇and why steering within the app is a likely remedy coming. Although only a handful of apps can pull that off and get customers to not use IAP. https://twitter.com/...
@bizcarson Biz Carson on x
This is one of those headlines where it's remarkable that it wasn't allowed in the first place: https://www.protocol.com/...
@quinnypig Corey Quinn on x
It's worth pointing out that last quarter Apple's profit was ~$230 million. Per day. https://twitter.com/...
@ourielohayon Ouriel Ohayon on x
Some nuance. You apparently cannot have the alternative payment option in the app (eg bitcoin). You have to email the user and route him outside of it. Clunky. But first step. https://twitter.com/...

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