Reportedly, Apple (AAPL) has agreed to make changes to the App Store rules in response to a class-action lawsuit. The iPhone maker will now allow developers to advertise other ways of paying for services that are offered through apps, an option that has been banned on the iPhone until now.
The decision is one of several concessions proposed by the iPhone maker to resolve a class-action suit from US developers and amid investigations by regulators claiming anti-competitive behavior. If a person pays for an app on the iOS store or makes a purchase within apps for digital goods, the firm charges the developers between 15% and 30% on each purchase. But if a customer subscribes outside of the app, for example, any alternate such as on the creator’s website in a web browser, Apple does not charge any percentage.
Until now, developers were not allowed to contact users promoting alternative payment options. Apple said users will have to consent to be contacted by developers and must have the opportunity to opt out.
Meghan DiMuzio, executive director of the Coalition for App Fairness (CAF), stated: “Apple’s sham settlement offer is nothing more than a desperate attempt to avoid the judgment of courts, regulators, and legislators worldwide. This offer does nothing to address the structural, foundational problems facing all developers, large and small, undermining innovation and competition in the app ecosystem. Allowing developers to communicate with their customers about lower prices outside of their apps is not a concession and further highlights Apple’s total control over the app marketplace. If this settlement is approved, app makers will still be barred from communicating about lower prices or offering competing payment options within their apps. We will not be appeased by empty gestures and will continue our fight for fair and open digital platforms.”
Apple plans to make pricing more flexible, in order to appease app makers by increasing the number of price points from less than 100 at present to more than 500 by the end of 2022. Also, Apple will publish a new transparency report revealing the number of apps rejected on the store.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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