Apple $100M Class Action Settlement Over Alleged App Development Monopoly
Apple Inc. has settled a $100 million antitrust class action lawsuit with app developers who claimed the company had a monopoly on app development and engaged in antitrust conduct.
Donald R. Cameron, et al. v. Apple Inc.
On behalf of about 67,000 app developers who earn less than $1 million per year from the sale of their products on Apple’s App Store, a class suit was filed in 2019. If the settlement is accepted, each class member will get between $250 and $30,000 in damages.
As per the lead plaintiff Donald R. Cameron, Apple charged high commissions for transactions made on the App Store. The company has now changed its regulations and now charges a lesser commission on sales of 15 percent as part of the Apple Small Business Program, which was introduced earlier this year.
In a statement to developers, Apple stated that it has committed to maintaining its 15 percent Small Business Program rate for at least the next three years. Also committed to revising its “anti-steering” guidelines, Apple has stated that it will allow the app developers to interact directly with their consumers about alternative payment choices.
Moreover, Apple has committed to implementing and maintaining a number of structural adjustments that will allow developers to more effectively create, distribute, as well as monetize their apps.
$100M App Store Antitrust Settlement, 2021
Apple will contribute $100 million to a Small Developers Assistance Fund, which will provide improved commission and application transaction terms for independent developers. According to the terms of the proposed Apple settlement, the company will also raise the number of price points available to developers from 100 to 500.
On Thursday, the company issued a press release detailing the revisions to the App Store’s policies and procedures, which will be implemented pending acceptance of the settlement.
According to Apple, the parameters of the agreement will contribute to making the App Store a better business opportunity for developers while maintaining the safe and reputable marketplace that customers have come to expect from the company.
Apple made headlines earlier this month when over 90 civil rights groups urged the company to abandon plans to install software that may detect sexually explicit content on children’s phones, highlighting privacy concerns.
Editor’s Note on App Store Antitrust Settlement 2021:
This article is written to inform you of Apple’s class action settlement over the alleged monopoly on app development and antitrust practices. Recently, Amazon has updated its policies to cover $1000 compensation to each customer that got property or personal injury from using Amazon products.
Case Name & No.: Donald R. Cameron, et al. v. Apple Inc., Case No. 4:19-cv-03074
Jurisdiction: U.S. District Court for the Northern District of California
Products/Services: App Store’s monopoly
Allegations: Apple allegedly engaged in an antitrust practice with app developers listed in the App Store
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