Brazil’s antitrust regulator, Cade, has instructed Apple to eliminate restrictions surrounding in-app purchase mechanisms. The company has been given a 20-day deadline to comply, and if it fails, it will incur a daily penalty of 250,000 reais (approximately $43,000). This directive stems from an investigation into allegations of anti-competitive practices lodged by Mercado Libre in 2022. Mercado Libre, a top e-commerce firm in Latin America, says Apple prevents apps from selling their goods and services freely. This includes banning apps offering links to buy items like books, films, games, or music from outside the App Store. Apple also forces apps to use its own pay system, which often adds fees to each purchase.
Cade’s Orders
Cade now requires Apple to provide developers with additional options. Firstly, apps must be permitted to include links directing users to external websites for purchases. Secondly, developers should have the freedom to implement alternative payment methods within apps, instead of relying solely on Apple’s system.
Gizchina News of the week
This decision adds to the growing global scrutiny Apple faces. Regulatory bodies in regions such as the United States, the European Union, Japan, and South Korea have also mandated the inclusion of third-party payment systems. These actions underscore concerns about the potential harm Apple’s policies inflict on developers and consumers alike.
Both Apple and Mercado Libre have stayed quiet on this ruling. Apple has not said if it plans to appeal or comply, and Mercado Libre did not reply to media questions outside its normal hours. This is a big move for app creators in Brazil. It could help reduce costs for users and give apps more freedom. Cade’s steps may push for fairer rules in digital stores and boost competition. Apple’s next steps could shape the future of app pay systems, not just in Brazil but in other places where similar cases are ongoing. Many will watch to see if the tech giant changes its stance or sticks to its rules despite rising pushback.
