Brazilian Antitrust Authority Urges Apple Penalties
The technical body's report highlights Apple's practice of banning alternative in‑app payment options and prohibiting developers from steering users to external purchase methods. CADE observes that these restrictions stifle competition by locking app makers into Apple's ecosystem and preserving the company's dominant position in digital transactions.
Apple has pushed back, warning that the proposed measures could degrade user experience and pose privacy and security risks. The company emphasised its intention to maintain dialogue with CADE while protecting its integrated model for managing apps and payments.
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Cade's scrutiny of Apple is not new. In November 2024, the regulator mandated the company to allow links to external payment sites and alternative in‑app payment methods, threatening daily fines of 250,000 reais for non‑compliance. That ruling remains in effect as part of the ongoing probe.
MercadoLibre, the region's leading e‑commerce platform, spearheaded one of the original complaints. The company argued that Apple's restrictions extended to areas such as music, video games, books and other digital content, effectively forcing consumers to transact through Apple's payment system rather than allowing developers to offer more cost‑effective or region‑specific solutions.
Digital‑economy experts note that Apple's model—mandating its own payment system—has faced growing scrutiny worldwide. The company has encountered comparable legal challenges in South Korea, the European Union and parts of the United States, where accusations of excessive market power have led to legislative changes mandating alternative app packaging and payment options.
In South Korea, Apple bowed to a new law allowing third‑party app stores but continues to impose a commission on transactions—even through alternate stores. Meanwhile, EU regulators have pushed for app‑steering rights, allowing developers to redirect users to external payment methods. Apple is currently appealing a significant EU antitrust ruling, which would cap app‑store commissions and allow developers to provide payment links.
Brazil's move follows this global trend, suggesting mounting pressure on Apple to adapt its App Store policies. Within Latin America, the company's practices are scrutinised amid efforts to promote fair competition and reduce consumer costs. Critics argue that Apple's commission—often up to 30 per cent—raises prices and limits developers' profitability.
Apple has justified its control over in‑app payments by citing benefits to user security, privacy and the integrity of its ecosystem. The company states that its integrated payment system ensures data protection, fraud prevention and consistent user experience. CADE, however, contends that alternatives could offer similar safeguards without undermining competition.
A verdict from CADE's internal tribunal is imminent, with stakeholders anticipating a decision within weeks. Should the tribunal affirm the technical body's recommendation, Apple may face both fines and a directive to alter its platform policies—potentially setting a precedent that affects its operations not only in Brazil but across emerging and developed markets alike.
Observers emphasise that this case reflects a broader shift in digital‑market regulation. Governments—from Seoul to Brussels to Brasília— are increasingly focused on curbing the market power of dominant app‑store operators. How CADE rules could influence Apple's global strategy, with implications for developers, consumers and the future of mobile digital ecosystems.
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Brazilian Antitrust Authority Urges Apple Penalties
Brazil's antitrust regulator CADE technical body has urged the conviction of Apple for what it deems anti‑competitive conduct within its iOS ecosystem. This recommendation, made on 30 June, comes after complaints from 2022, including one by MercadoLibre, alleging that Apple restricts digital‑goods distribution and forces developers to use its proprietary payment system for in‑app purchases. The body has proposed an undisclosed fine and a cease‑and‑desist order, with a final decision now pending before CADE's internal tribunal. The technical body's report highlights Apple's practice of banning alternative in‑app payment options and prohibiting developers from steering users to external purchase methods. CADE observes that these restrictions stifle competition by locking app makers into Apple's ecosystem and preserving the company's dominant position in digital transactions. Apple has pushed back, warning that the proposed measures could degrade user experience and pose privacy and security risks. The company emphasised its intention to maintain dialogue with CADE while protecting its integrated model for managing apps and payments. ADVERTISEMENT Cade's scrutiny of Apple is not new. In November 2024, the regulator mandated the company to allow links to external payment sites and alternative in‑app payment methods, threatening daily fines of 250,000 reais for non‑compliance. That ruling remains in effect as part of the ongoing probe. MercadoLibre, the region's leading e‑commerce platform, spearheaded one of the original complaints. The company argued that Apple's restrictions extended to areas such as music, video games, books and other digital content, effectively forcing consumers to transact through Apple's payment system rather than allowing developers to offer more cost‑effective or region‑specific solutions. Digital‑economy experts note that Apple's model—mandating its own payment system—has faced growing scrutiny worldwide. The company has encountered comparable legal challenges in South Korea, the European Union and parts of the United States, where accusations of excessive market power have led to legislative changes mandating alternative app packaging and payment options. In South Korea, Apple bowed to a new law allowing third‑party app stores but continues to impose a commission on transactions—even through alternate stores. Meanwhile, EU regulators have pushed for app‑steering rights, allowing developers to redirect users to external payment methods. Apple is currently appealing a significant EU antitrust ruling, which would cap app‑store commissions and allow developers to provide payment links. Brazil's move follows this global trend, suggesting mounting pressure on Apple to adapt its App Store policies. Within Latin America, the company's practices are scrutinised amid efforts to promote fair competition and reduce consumer costs. Critics argue that Apple's commission—often up to 30 per cent—raises prices and limits developers' profitability. Apple has justified its control over in‑app payments by citing benefits to user security, privacy and the integrity of its ecosystem. The company states that its integrated payment system ensures data protection, fraud prevention and consistent user experience. CADE, however, contends that alternatives could offer similar safeguards without undermining competition. A verdict from CADE's internal tribunal is imminent, with stakeholders anticipating a decision within weeks. Should the tribunal affirm the technical body's recommendation, Apple may face both fines and a directive to alter its platform policies—potentially setting a precedent that affects its operations not only in Brazil but across emerging and developed markets alike. Observers emphasise that this case reflects a broader shift in digital‑market regulation. Governments—from Seoul to Brussels to Brasília— are increasingly focused on curbing the market power of dominant app‑store operators. How CADE rules could influence Apple's global strategy, with implications for developers, consumers and the future of mobile digital ecosystems.
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