Apple settlement lets app makers advertise outside payments

 The settlement will include $100 million worth of payments to app makers ranging from $250 to $30,000 per developer

Apple Inc. settled a wide-ranging class action lawsuit with U.S. app makers Thursday, announcing changes to the App Store such as giving developers more flexibility to advertise outside payment methods.

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 who claimed Apple overcharged them fees required for distributing their programs through the iOS App Store. The 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 Inc. 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 can’t ban developers for these communications. It doesn’t, however, let developers advertise outside pricing or payment methods within apps themselves.

The company is “clarifying that developers can use communications, such as email, to share information about payment methods outside of their iOS app,” Apple said in a statement.

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% and 30% in commissions. Apple reduced the cut to 15% for all developers that generate $1 million or less annually last year. On Thursday, it committed to continuing that policy for the next three years.