Houston Chronicle

Apple OKs deal with app makers in key win

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Apple settled a wide-ranging class action lawsuit with U.S. app makers Thursday without agreeing to major changes to its policies, a victory for a company facing criticism that it wields too much power.

The settlement will include $100 million worth of payments to app makers ranging from $250 to $30,000 per developer, according to law firm Hagens Berman, which represente­d plaintiffs claiming Apple overcharge­d them fees for distributi­ng their programs through the iOS App Store. A new advertisin­g policy, meanwhile, will make it easier for developers to promote alternativ­e pricing plans and ways to pay — without Apple taking a cut.

Apple has long allowed developers to advertise external payment methods — such as Netflix pointing users via email to sign up on its website instead of the app — but has frowned upon the practice. The new policy ensures Apple won’t ban developers for these communicat­ions. It doesn’t, however, let developers advertise outside pricing or payment methods within the apps themselves.

Critically for Apple, the settlement excludes more significan­t App Store changes that were sought by some outside developers and legislator­s. The company is still requiring developers to sell their apps — as well as in-app items and subscripti­ons — using Apple’s payment system, which takes between 15 percent and 30 percent in commission­s. Apple reduced the cut to 15 percent for developers that generate $1 million or less annually last year. On Thursday, it committed to continuing that policy for the next three years.

 ?? Patrick Semansky / Associated Press ?? Apple will let developers of iPhone apps email their users about cheaper ways to pay for digital subscripti­ons and media.
Patrick Semansky / Associated Press Apple will let developers of iPhone apps email their users about cheaper ways to pay for digital subscripti­ons and media.

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