Apple will finally allow app developers to use a payment gateway of their choosing and not mandate the iOS App Store’s payment option. A press release by the company has said that it has authorized app developers to inform users that they can now use alternate payment methods for in-app purchases, thus circumventing the massive cut that the company takes.
Before this policy update, Apple did not allow developers to use any other payment option besides the one on the App Store. This resulted in the company taking 30 percent of any transactions made towards the app.
According to Ars Technica, this change comes as a proposed settlement of a lawsuit filed by two developers in 2019. Apple as well as the plaintiffs have allegedly filed motions urging a federal judge to approve the settlement, calling it a “win-win” situation. The change in guidelines now makes available up to $100 million for developers who claim to have lost income due to the policies.
“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 Apple Fellow and App Store overseer, Phil Schiller. “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.”
However, Epic Games and the Coalition for App Fairness group is not convinced by this settlement. According to the group, the settlement does not address the structural problems that affect app developers worldwide.
“Apple’s sham settlement offer is nothing more than a desperate attempt to avoid the judgment of courts, regulators, and legislators worldwide,” said Meghan DiMuzio, Executive Director of the CAF in a statement. “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.”