Apple has cut a $25 million settlement to put an end to a class action lawsuit accusing the company of not clearly explaining how subscriptions for third-party apps worked with Family Sharing, reports MacRumors.
Plaintiffs for the case “Walter Peters v. Apple Inc.,” Case No. 19STCV21787, leveled allegations against company officials of inaccurately labeling apps listed on the App Store as compatible with Family Sharing when “the vast majority” of subscriptions were not compatible with the feature.
“As a result of Apple’s deceptive and misleading practices, Plaintiffs and the Class Members were induced to purchase subscription-based Apps for which Apple receives hefty fees, believing that those Apps could be shared with up to six family members,” the ligation reads, “when in fact they were available only to the single user who set up the subscription.”
The litigation specifically mentions plaintiffs who subscribed to Brainwell and YouTube Red on the App Store. The defendants say both of the apps’ store pages contained labels stating that the app was compatible with Family Sharing. The graphic referenced in the case, however, does not specifically state the subscription itself would be compatible with the feature.
Company officials continue to deny wrongdoing. Agreeing to the settlement allows Apple to avoid the costs of going to trial.
Apple has faced increased scrutiny in the U.S. in recent years over its App Store practices. Epic Games famously sued Apple after the Cupertino company pulled Fortnite from its App Store for skirting its in-app payment system, calling the company a monopoly. The judge ruled in favor of Apple on all but one count, which Apple is appealing. Epic sought to force Apple to comply with the changes immediately, but the request was denied. Google just lost in a similar case also filed by Epic Games.
Apple is facing App Store challenges abroad as well. Under the Digital Market Act, the European Union has designated the App Store as a “gatekeeper” service, which may require the company to open up iOS to third-party app stores and billing services. Apple is planning to appeal, arguing that only specific parts of the App Store should be subject to the act.
As part of the Family Sharing settlement, many customers of Apple in the United States will be eligible for a part of the settlement. Anyone who purchased a subscription to an app through the App Store while part of a Family Sharing group with another member between June 21, 2025, and January 30, 2019, can sign up to receive a payment. The site details other legal rights available to those affected.
