The Brazilian authorities have declared Apple’s App Store anti-steering policies illegal, marking another setback for the tech giant in the realm of antitrust regulations. As a result, Apple can no longer prevent developers from directing users to their own websites where they can sell in-app items such as music, books, and games.
This ruling follows similar actions taken in the EU, where Apple has been compelled to allow third-party app stores, and in the United States, where developers can now sell in-app content beyond Apple’s platform.
Brazil joins the ranks of countries accusing Apple of monopolistic behavior in its control over iPhone applications and in-app purchase transactions.
Following EU and US Antitrust Decisions
One of Apple’s most significant losses occurred in the EU, where regulators mandated that third-party app stores be permitted, enabling developers and customers to bypass the official App Store. However, Apple’s response has been characterized by some critics as “malicious compliance,” and further legal scrutiny seems imminent.
In the U.S., the Epic Games lawsuit resulted in a directive that requires Apple to allow developers to create links to external sites for purchasing content. Observers have noted that Apple’s implementation of this directive has not met the expectations set by the judge overseeing the case, with suggestions that Apple may not be acting in good faith.
Anti-Steering Rules Declared Illegal in Brazil
Reuters recently reported on this significant ruling.
Brazil’s antitrust authority, Cade, mandated on Monday that Apple eliminate restrictions concerning payment methods for in-app purchases, as part of an ongoing investigation prompted by a complaint from MercadoLibre, a leading e-commerce firm in Latin America. […]
MercadoLibre’s grievance highlighted Apple’s requirement for developers of digital goods and services to use Apple’s own payment platform, effectively prohibiting them from guiding customers to their own sites for purchases. Cade’s ruling obligates Apple to enable app developers to integrate tools allowing customers to acquire products or services outside the app, such as via hyperlinks to external websites.
Limited Time to Comply, but Fines are Insignificant
Apple has been granted a mere 20 days to conform to this ruling or face daily penalties.
However, the maximum fine that can be imposed is 250,000 Brazilian real (approximately US$43,000), which is a negligible amount for a company of Apple’s size. It remains uncertain whether Apple will meet the compliance deadline.
Photo by Agustin Diaz Gargiulo on Unsplash
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