Apple Park
0 Facebook x.com Reddit
Apple has just 20 days to open in-app purchases or face a $43,000-a-day fine if it fails to comply with a ruling from Brazil's antitrust regulator.
In 2022, online retailer MercadoLibre filed an antitrust complaint with Brazilian regulators. The complaint was accepted for review in 2023 by the antitrust regulator Conselho Administrativo de Defesa Economica (CADE), and a ruling was issued on Monday.
According to Reuters, CADE ruled that Apple must remove restrictions on in-app payment methods and redirects to external websites. The company has 20 days to comply or face a fine of about $43,000 per day.
Apple's antitrust practices have been criticized by many countries for years. The most high-profile case was heard in the United States in Epic v. Apple, but EU antitrust laws have forced Apple to develop an entirely new fee system.
The EU’s success and the slow erosion of Apple’s rules in the US have prompted more antitrust regulators to try to achieve similar results. Now that Apple has a system for removing antitrust rules or changing its in-app purchase system, it can adapt them to other countries.
The App Fairness Coalition congratulated Brazil’s CADE on its decision, calling it a turning point.
“This is a turning point in the global effort to create a more competitive mobile app ecosystem,” the press release said. “Brazil joins a long list of bold jurisdictions seeking to reform app store practices to benefit consumers and developers. CADE’s decision reflects a growing global consensus that meaningful government intervention can create fair and competitive digital markets.”
Apple may have to completely overhaul the way it monetizes the App Store if more global regulators ask it to remove the rules from their guidelines. Regulators hope the action against Apple will help spur competition and give users choice, while Apple argues it increases risk to consumers and gives developers free access to Apple's user base.
Follow AppleInsider on Google News
