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Of course they have to pay the customer refunds.

The developers accepted a contract agreeing to refund money in certain circumstances, the circumstance have occurred, it is time for them to uphold their end of the contract.

The sales have been rolled back, the customers' money is in the developers account (as sympathetic as "pocket" sounds, if they can carry the money in their pocket then this is about very little money at all), the customers get their money back.

I think perhaps everyone that learns this lesson does it the hard way. Understand the contracts you enter into.

(I learned mine at the hands of Digital Equipment Corporation. For "good will" reasons I agreed to supply a specific key person for a specific nearly completed project until it was finished for a specific sum. All good, until it became in Digital's best interests to not complete the project on time and get more money from the customer for another year's work. I'm sure the Digital managers had many a good laugh that year.)




It's not just about the refunds. The real issue is that they deny developers apps and give them no more than an up or down vote. And when you try and talk to somebody, they don't even give you the courtesy of a real conversation. Apple is nothing without its legions of fans. Those fans start with a kernel of developers and tech enthusiasts. You think my mom would have bought an iPhone if her geeky son didn't harass her for months that it's the only phone worth having? You think my sister-in-law wouldn't have bought a Mac if I hadn't convinced her that it isn't this scary OS that's so different from Windows?

I understand Apple has business contracts. I understand they are out to make money. All we're asking is that they stop being such profound douchebags in the process. All we're asking is that they stop shitting on the very people who helped build their success. All we're asking is they stop FREAKING people out with their man-behind-the-curtain/NDA-siging/cyborg-talking dev program.


I agree 100% with this. Apple's geek core is at least part of the reason they're growing. It's not easy to convince a barely computer-literate person to leave behind the environment they 'know', but I've converted my wife, my mom, my brother.

This s#@t is leaving a bad taste in my mouth though, and I'm not even a developer.


> The customers' money is in the developers account

It gets worse: some 30% of that money is in Apple's pocket, but 100% of the refund comes from the developer.

Apple gets to keep their cut even after the refund, as per the developer contract, even though the reason for the refunds is because of Apple blocking further deployments from the developer.

Harsh circumstances.


I think you are misinformed. Some people read the developer agreement this way and trumpeted loudly, and it is a fair interpretation, but as I understand it Apple only retrieves the 70% they paid the developers from the developers.

See http://news.cnet.com/8301-13579_3-10205293-37.html and skip down to the "Updated 4:00 p.m." at the bottom of the article where the journalist adds the response from Apple's representative.

Are there sources where developers document being charged 100%?


That does sound much more sane, good to know.

I guess any increase in returns from this Google Voice palaver will get highlighted if more than the 70% is taken from the developer's account.


I agree, contracts are legally binding. However, there are judgments against contracts in civil court cases merely because the contract is ludicrous. E.g. Apple approved the application, then breached the values of the contract (despite it not being written in the contract) by rejecting the application although the application did not drastically change during it's life-cycle. (The argument may fall better under lacking competency to manage the App Store.) With this FCC ruling, I think an application developer would be insane not to sue for breach of contract by Apple.


Or to put it more succinctly: Apple cannot retain the 30% if it was the cause of removal for an otherwise rules-abiding application. It's known as the doctrine of unclean hands (or possibly may even just be a plain ol' breach of contract).


Does anyone actually document Apple keeping 30%? It is my understanding that this is from a 3rd party interpretation of the contract and that Apple only retrieves the 70% they paid the developers.


If anyone takes this one to court, I'm sure Apple's legal team will try to paint that 30% they take as just a 'fee' to cover the infrastructure costs and that the infrastructure was still used to make the sale even when the customer is asking for a refund. (Not that I agree with what they are doing)




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