Brazil’s antitrust regulator, Cade, has mandated that Apple remove restrictions on payment methods for in-app purchases, marking a significant development in the global push against anti-competitive practices in the tech industry.
This ruling follows a complaint from MercadoLibre in 2022, accusing Apple of unfairly requiring developers to use its proprietary payment system and prohibiting links to third-party digital goods and services.
Key Decisions by Cade
Cade’s decision imposes several requirements on Apple to foster competition and enhance consumer choice.
- Alternative Payment Methods:
Developers can now provide users with alternative in-app payment options, bypassing Apple’s system. - External Purchase Links:
Developers can include links to external websites for purchases, enabling users to transact outside of the App Store ecosystem. - Compliance Deadline and Penalty:
Apple has been given 20 days to comply with these measures. Non-compliance will result in a daily fine of 250,000 reais (approximately $43,000).
The Complaint and Apple’s Practices
MercadoLibre filed its complaint in 2022, alleging that Apple’s practices harmed competition by restricting payment options and monopolizing revenue streams. Apple’s App Store policies currently require developers to use its payment system, which charges commissions of up to 30%, a model that has faced widespread scrutiny globally.
These restrictions have been criticized for limiting innovation and creating barriers for developers seeking to provide cost-effective solutions to users.
Global Implications
This ruling aligns with a broader global trend of scrutinizing tech giants for anti-competitive practices. Apple has faced similar challenges in markets like South Korea, the European Union, and the United States, where regulators have questioned its control over app ecosystems and payment systems.
Brazil’s ruling could set a precedent for other countries in Latin America, potentially triggering a wave of similar actions aimed at curbing the dominance of tech giants.
What’s Next for Apple?
Apple has yet to issue an official statement regarding the ruling. However, it is expected to contest the decision, as it has done in other jurisdictions facing similar rulings.
For now, developers and users in Brazil are poised to benefit from increased flexibility and reduced costs, signaling a win for competition and consumer rights in the digital marketplace.
A Step Toward Fair Competition
Cade’s ruling is a significant victory for developers and a move toward a more equitable digital economy. While Apple’s compliance strategy remains to be seen, this decision marks a turning point in the global effort to ensure fair competition in app marketplaces.
