NIXSolutions: App Store In-App Payments Monopoly Drops

Apple will allow developers to specify in-app payment alternatives bypassing its ecosystem, while keeping apps in the App Store. This is part of an upcoming class action settlement against the company that was filed in 2019.


This lawsuit, in turn, was the result of an eight-year litigation that began in 2011, when developers first accused the corporation of monopolizing the distribution channel for iOS applications, as well as an unfairly high 30% sales commission.

As a result of the aforementioned concessions from Apple, it will now be easier for developers to attract customers to alternative payment methods for in-app purchases without the App Store, says SearchEngines.

Apple will also set up a $100 million fund to support small businesses (The Small Developer Assistance Fund). A payment in the amount of $250 to $30,000 will be received by developers whose turnover was less than a million dollars for the year – from June 2015 to April 2021. According to the plaintiffs, 99% of the developers will benefit from this.

NIXSolutions notes that this transaction has nothing to do with Epic Games’ antitrust lawsuit. Both proceedings are being reviewed by Judge Yvonne Gonzalez Rogers. During her testimony, she asked Apple CEO Tim Cook to clarify why the corporation does not allow developers to offer cheaper in-app purchase options outside of its ecosystem. Cook responded that Apple is free to choose a business model based on commissions from app downloads and in-app purchases.