Back in August 2021, Apple agreed to pay $100 million and make changes to the App Store to settle a class-action lawsuit brought against it by developers. Judge Yvonne-Gonzalez Rogers, who oversees the case, said yesterday she planned to approve the settlement, but expressed concern about the amount the lawyers planned to charge.
Rogers said she wanted more on the “math” behind the requested $27 million in attorney’s fees and how the fee would reduce claims by smaller developers. She asked for a mathematical analysis of how much less each class member would get if she awarded $25 million in attorney’s fees instead of $27 million.
Rogers noted that for some developers, the difference can be huge, which is why she wants to “see the numbers.” Apple pointed out back in March that the $27 million fee was higher than the 25% benchmark set by the Ninth Circuit.
Apple called the settlement the Small Developer Assistance Fund and began accepting claims from developers in January. Developers have until May 20 to submit claims through the website, and Apple has provided some reminders. It is reported that developers can apply for compensation ranging from $250 to $30,000 based on their historical engagement in the App Store.
There are roughly 67,000 eligible developers. Developers earning less than $100 will receive a minimum payment of $250, while developers earning more than $1 million will be entitled to higher-end payments. Minimum payments may vary based on the number of total claims.
The settlement stems from a 2019 lawsuit in which a group of iOS developers accused Apple of using its App Store monopoly to impose “profit-killing” commissions. Developers were unhappy with Apple’s 30% commission on App Store sales, an issue that was addressed in the App Store Small Business Program, which reportedly reduced the commission small developers had to pay to 15%.
In addition to paying the $100 settlement, Apple has agreed to allow developers to share information about payment methods other than the App Store using communications such as email, and Apple has expanded the number of price points developers can use for subscriptions.
Apple has also pledged to maintain the App Store Small Business Program and App Store Search — with no changes for at least three years. The company also creates an annual transparency report based on App Store data, which covers app rejections, apps removed from the App Store, search information, and more.
The Small Developer Assistance Fund website says it plans to release funds as soon as possible to developers who submit timely and valid claims.
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