Earlier today, a report emerged regarding Apple’s appeal against a ruling from a Brazilian antitrust regulator concerning the App Store. Subsequently, on Thursday night, Brazilian courts decided to rescind the injunction that would have mandated Apple to permit sideloading on iOS for users in Brazil within 20 days.
Apple obtains additional time to respond to Brazilian regulator’s App Store ruling
A recent report from Valor Econômico indicates that a judge from a Brazilian Federal Court deemed Cade’s decision, the Brazilian regulatory authority, as “disproportionate and unnecessary.” The judge noted that the imposed measures would significantly and structurally alter Apple’s operations.
On November 26, Cade declared that Apple was to comply with antitrust regulations within 20 days or face a fine of R$250,000 (approximately US$42,000) for each day of non-compliance. Apple had previously contested this, arguing that the required adjustments were overly complicated and time-consuming, making the 20-day deadline unfeasible.
The judge emphasized that the “technical complexity of the alterations and the worldwide regulatory consequences of comparable actions in regions like the European Union, highlight the necessity for more thorough discussions regarding these changes.”
In essence, Apple would be required to implement modifications in Brazil that mirror those it enacted in the European Union earlier this year, including the introduction of alternative App Marketplaces to the App Store. Apple responded by asserting that the regulatory decision posed a “drastic threat” to user privacy and security, labeling it “arbitrary.”
Cade’s inquiry began following accusations from Latin American e-commerce giant Mercado Libre, which alleged that Apple compelled developers providing digital goods or services within their apps to utilize Apple’s payment system. Cade is also scrutinizing Apple for its practice of “tying,” which involves imposing anti-competitive conditions on iOS.
Despite the judge lifting the injunction, the Brazilian regulator retains the right to appeal, and investigations will persist, meaning Apple may still ultimately be required to enable sideloading in Brazil, although the company has been granted additional time to manage the situation.
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