District Judge Yvonne Gonzalez Rogers repeatedly raised while presiding over the high-profile Epic-Apple trial. The compromise addresses a concern that U.S. App developers will get more flexibility to set different prices within their apps, expanding the options from about 100 to 500 choices. 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.Īpple will also set up a US$100 million fund to pay thousands of app developers covered in the lawsuit sums ranging from $250 to $30,000.
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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%. 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.Īpple 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. The concession announced late Thursday, 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. While some European countries have banned loot boxes as a form of illegal gambling, legislative efforts to regulate the practice in some US states (and the US Senate) have by and large stalled after gaining some momentum in 20.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. "This is why today we only offer X-Ray Llamas that show you the contents before you purchase them in 'Save the World'" (and similarly transparent blueprints in Rocket League). "We believe players should know upfront what they are paying for when they make in-game purchases," Epic wrote in a tweet announcing the move today. Minors in California who purchased a loot box "with own money and without parental permission" will also be eligible for a cash refund of up to $50 if they submit a claim. Those cash payments (of up to $50 per claimant) will only be available to players who submit an active claim form establishing that they think their purchase constituted "consumer fraud" or breach of contract. Advertisementįurther Reading Meet the legislator trying to do something about video game loot boxesIn addition to the virtual currency, Epic will also be providing "up to $26.5 million in cash and other benefits to U.S.-based Fortnite and Rocket League players" to settle the claims. That suggests a rough valuation of over $78.3 million in digital reward payouts as part of the settlement. A marketing bargain?Įpic estimates roughly 6.5 million Fortnite players and 2.9 million Rocket League players will receive the automatic virtual currency payments, according to The Verge.
Players of both games won't have to do anything to claim the benefit, which will appear in their accounts in the coming days. Rocket League players will similarly receive 1,000 credits (worth roughly $9.10) if they bought a randomized Event Crate or key in that game before Epic stopped offering them in October 2019 (just months after it purchased Rocket League developer Psyonix). Even though it's settling a US lawsuit, Epic says this same deal will apply to all Fortnite players globally. Under a proposed settlement for that suit, which Epic says has achieved preliminary approval, all players who purchased a loot llama at any time will be rewarded with 1,000 V-Bucks (worth roughly $8). Shortly after ending the practice, Epic was faced with a class-action lawsuit alleging, among other things, that it had "psychologically manipulate its young players into thinking they will 'get lucky.'"
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Further Reading Fortnite puts an end to random loot box purchasesWhile Epic never offered loot boxes in Fortnite's mega-popular battle royale mode, it let "Save the World" players purchase "loot llamas" full of random items until early 2019 (amid international outcry about the randomized loot-box business and its similarity to gambling).
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