Apple Loosens App Store Payment Rules In Lawsuit Settlement

Apple has agreed to let developers of iPhone apps email their users about cheaper ways to pay for digital subscriptions and media by circumventing a commission system that generates billions of dollars annually for the iPhone maker.

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The concession announced last week, which covers emailed notifications but does not allow in-app notifications, is part of a preliminary settlement of a nearly 2-year-old lawsuit filed on behalf of iPhone app developers in the U.S. It also addresses an issue raised by a federal court judge who is expected to soon rule on a separate case brought by Epic Games, maker of the popular video game Fortnite.

Apple announced the news in a “background” briefing with reporters in which it insisted on anonymity for participating executives and would not allow any direct quotations.

Under long-standing Apple rules, makers of iPhone apps were forbidden to email users with information on how to pay for services outside the app, which would circumvent Apple commissions of 15% to 30%.

The concession now opens one way for app developers to more aggressively encourage its users to pay in other ways, so long as the companies obtain consumer consent.