Apple’s App Store Rules Under Fire: Brazil’s Antitrust Body Orders Major Changes

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Apple’s strict App Store policies, which require iOS developers to use its own in-app payment system and charge hefty commissions of up to 30%, are facing significant scrutiny. Brazil’s antitrust regulator, CADE, recently voted unanimously to maintain a provisional measure that demands Apple loosen its restrictions, allowing developers greater flexibility in offering services and managing payments. This decision stems from an investigation launched in 2022 following a complaint from e-commerce giant Mercado Libre. Here’s a deeper look at this ongoing battle and its potential global implications.

Brazil’s antitrust body, CADE, has voted to uphold a provisional measure that demands Apple adjust its App Store policies, specifically those surrounding payment systems and app developer communications. The move follows a 2022 complaint filed by Mercado Libre, Latin America’s e-commerce giant, which highlighted how Apple’s policies hindered competition by forcing developers to use its in-app payment system, taking up to 30% commission. CADE’s technical team concluded that Apple’s restrictions violated Brazilian competition laws by limiting choice and putting developers at a disadvantage.

This ruling not only extends the compliance deadline for Apple from 20 to 90 days but also insists that the company offer more freedom to developers in how they interact with users. CADE’s lead councilor, Victor Oliveira, criticized Apple’s selective enforcement of its policies and its “tying strategy,” where developers were forced into unfavorable revenue-sharing models. He compared the situation to similar cases in the U.S. (Epic Games) and other countries like Japan, the Netherlands, and the UK.

In response, Apple stated that while it values user safety and privacy, it believes CADE’s decision could have negative implications for security, making the App Store a less trusted environment. Apple also emphasized that its platform creates opportunities for developers globally and faces intense competition worldwide.

This ruling is just the latest chapter in the ongoing scrutiny Apple is facing from regulators across the globe. The case not only affects the tech giant’s operations in Brazil but also signals the growing trend of antitrust action against Apple in other regions like the EU and the U.S. where similar concerns about App Store practices are raising alarm bells. Apple’s fight to maintain control over its App Store ecosystem continues, but regulatory pressures appear to be mounting.

What Undercode Says:

Apple’s App Store policies are increasingly under the spotlight as countries around the world scrutinize their impact on competition. Brazil’s CADE ruling is the latest in a series of regulatory challenges that Apple faces, and it highlights a crucial point in the broader debate about the control tech giants have over their ecosystems. For developers, Apple’s 30% commission and restrictive payment policies have been seen as a burden, limiting innovation and adding unnecessary costs.

However, this case is about more than just Apple. It is part of a growing global movement to address the anti-competitive behaviors of major tech companies that control large portions of online commerce. The CADE decision also indicates a shift toward more developer-friendly ecosystems, pushing Apple to open up its platform and give users more freedom of choice. The criticism regarding Apple’s selective enforcement of rules is significant, pointing to the company’s inconsistent approach, which undermines fair competition.

This ruling is unlikely to be the last of its kind. Apple has long maintained that its App Store model ensures safety and trust for its users, but as regulators globally continue to challenge its policies, the company will need to reconsider how its approach impacts both developers and consumers. Apple’s resistance could spark further legal battles, especially with global competition laws becoming more stringent and transparent.

Fact Checker Results:

✅ CADE’s provisional measure aligns with competition law, focusing on developer freedom.
✅ Apple’s argument about privacy concerns does not fully address the anti-competitive nature of its policies.
✅ This decision follows similar cases in Europe and the U.S., confirming a global trend against App Store monopolistic practices.

Prediction:

As regulatory scrutiny continues to intensify, Apple may eventually be forced to overhaul its App Store policies, potentially leading to reduced commissions and more flexibility for developers. This could not only shift the dynamics of the App Store but also influence how other tech giants approach their marketplace ecosystems. Additionally, Apple’s legal battles may set precedents for future antitrust cases in the digital economy.

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Reported By: 9to5mac.com
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