Recently, we shared news that Brazil’s antitrust authority, known as “Cade,” has determined that Apple can no longer restrict developers from selling content and distributing apps outside the App Store in Brazil. Unsurprisingly, Apple is appealing this ruling, which the company deems “disproportionate.”
Apple claims that Brazilian regulator’s decision endangers iOS users
According to TeleSíntese (via MacMagazine), Apple lodged an appeal with the Brazilian authority on Thursday in response to a lawsuit alleging that the App Store has illegal anti-steering rules in Brazil. On November 26, Cade announced that Apple would have 20 days to adhere to antitrust regulations, or face a fine of R$250,000 (approximately US$42,000) daily.
Theoretically, Apple would be required to implement changes akin to those introduced in the European Union earlier this year, allowing alternative App Marketplaces to the App Store. In reaction, Apple expressed that the Brazilian regulator’s ruling “significantly threatens” user privacy and security, branding it “arbitrary.”
Apple further indicated that complying with the order within the 20-day timeframe imposed by the regulator would be impossible, as the ruling “is not urgent in any way,” given that the App Store’s business model has remained consistent since 2008. The company insists that additional time is necessary to “execute complex technical modifications” in iOS to facilitate sideloading in Brazil.
The decision on whether to uphold Apple’s appeal remains pending from the Brazilian regulator. Notably, Cade initiated its investigation after Latin American e-commerce titan Mercado Libre accused Apple of compelling developers, selling digital goods or services via their apps, to utilize Apple’s proprietary payment system.
In June, Japan also implemented a new law requiring Apple to permit App Marketplaces for iOS users in the nation. However, no announcements have been made regarding the timeline for these changes. Currently, the EU remains the sole region where Apple has enacted significant alterations to iOS and the App Store operations.
In a related development, Brazil’s Cade is also scrutinizing Google for similar anti-competitive actions regarding Android.
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