Apple has now announced that developers in the US can now accept payments outside of the App Store. This will make it easier for them to keep in-app prices less because now developers don’t have to give Apple their cut, commonly known as the “Apple Tax”. Apple is in the middle of a legal crisis against Epic Games and they have decided to settle the case by implementing this.
Apple in its recent statement said, pending court approval, this will resolve a class-action suit from the US developers. Apple claims that they are “Providing More Flexibility and Resources for Small Developers”.
“From the beginning, the App Store has been an economic miracle; it is the safest and most trusted place for users to get apps, and an incredible business opportunity for developers to innovate, thrive and grow,” said Phil Schiller, who oversees the App Store. “We would like to thank the developers who worked with us to reach these agreements in support of the goals of the App Store and to the benefit of all of our users.”
Here are the 7 key App Store priorities that Apple sent to the judge, and are pending court approval:
- Developers can now reach out to consumers and share information about the payment methods outside the App Store, without giving Apple any commision.
- Apple is now also offering more price points for developers to choose from, taking it from under 100 previously, to now over 500.
- Apple will also make a fund for developers who earned less than $1 milllion between June 4, 2015, and April 26, 2021. They claim that this encompasses over 99% of their developers.
- Apple has also agreed to create a “annual transparency report” which will showcase data about their App review process, 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.
- Apple will still continue to take it’s revenue cut though, but with a lower commision from businesses who earned less than the $1 million threshhold.
- Apple will maintain the option for developers to appeal the rejection of an app based on perceived unfair treatment. They have agreed to outline a few more details on their App review website to help out developers.
- 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.
All this means that Apple is helping out its developers but is also taking a huge part out of its earnings, which will make its earning reports even more anticipated.