Application developers don’t care much for Apple’s new policy of refunding for its App Store. Heavy criticism from developers exploded on the blogosphere and the main idea is that the refunding policy could bankrupt several developers.
Currently, Apple gets 30 percent of any application sold over its App Store, while the developer gets the rest of 70 percent. Apple’s fee covers the advertising and access to the company’s loyal user base. However, this agreement that has worked like a marvel so far is directly threatened by the refunding clause under which developers are required to pay a steep out-of-pocket fee to Apple if an App is returned.
The clause allows Apple to charge back 100 percent of the purchase price to developers for App Store returns and still keep its 30 percent commission. The clause basically means that Apple gets to issue refunds within 90 days with the full price it paid, but will still get to retain its commission. Here’s the full text of the clause:
6.3 In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application. In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end-user.
Although it sounds despicable at the very least, it’s not something to worry about that much. Apple is not known to be a forthcoming company when it comes to refunds. Actually, Apple is exactly the opposite. Under the App Store Terms and Conditions, Apple practically decides if you have the right to refund an app or not. Of course, you may request a refunding, but Apple decides whether you meet the conditions to be granted one. It’s very hard to get refunds from Apple, so app developers don’t have to worry about bankruptcy in this case. The aforementioned clause is just for show. It makes the buyers think they are in control so they are more likely to purchase apps.
