Tim Hardwick
Brazil's antitrust regulator has ordered Apple to lift App Store restrictions on third-party payment systems and allow developers to offer alternative payment options for in-app purchases. Apple has 20 days to comply or face a daily fine of $43,000.
The ruling by the Economic Defense Council (Cade) comes in response to a 2022 complaint filed by MercadoLibre, Latin America's largest e-commerce platform. The company accused Apple of abusing its monopoly position by requiring developers to use Apple's own payment system and preventing them from redirecting users to external payment options.
Under the new requirements, Apple must allow app developers to implement tools that allow customers to make purchases outside the Apple ecosystem. This includes allowing hyperlinks to external websites and allowing developers to promote third-party products and services in their apps.
The Brazilian case reflects similar antitrust concerns raised in the EU. In March 2024, the European Commission fined Apple €1.8 billion ($1.95 billion) for restricting music streaming apps from informing users about cheaper subscription options outside the App Store. The ruling follows a complaint by Spotify in 2020.
MercadoLibre’s original complaint, filed in both Brazil and Mexico, argued that Apple’s restrictions particularly hurt smaller competitors while benefiting large, integrated digital companies. The e-commerce giant’s senior vice president and general counsel, Jacobo Cohen Imah, criticized Apple’s practice for creating an “artificial bias toward integrated ecosystems.”
(Via Reuters.)
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Tags: Apple Antitrust, Brazil[ 78 comments ]
