Brazil Orders Apple to Allow Alternative Payments in App Store

Brazil’s antitrust regulator, Cade, has issued a significant ruling requiring Apple to remove restrictions on payment methods for App Store’s in-app purchases, Reuters is reporting.

The decision comes as part of an investigation initiated by a 2022 complaint from Latin American e-commerce leader MercadoLibre, which accused Apple of imposing unfair constraints on app developers.

The tech giant was criticized for mandating the use of its proprietary payment system for transactions involving digital goods and services, such as movies, books, and games. Developers were also barred from directing users to external websites for purchases, limiting competition and flexibility in payment options.

Under the new regulations, Apple must allow developers to integrate tools like hyperlinks within their apps, enabling users to make purchases on external platforms. Additionally, developers must be allowed to offer alternative in-app payment methods alongside Apple’s system.

Apple has 20 days to comply with Cade’s ruling. Non-compliance could result in a daily fine of 250,000 reais (approximately $43,000).

The Brazilian ruling mirrors similar legal and regulatory actions worldwide. In recent years, Apple has faced increasing scrutiny over its app store policies, with critics arguing the company leverages its dominant position to stifle competition.

Antitrust investigations in the European Union, South Korea, and the United States have also challenged Apple’s restrictive payment practices.

Cade’s decision is expected to have a wide-reaching impact on developers and consumers in Brazil. By allowing alternative payment methods, developers can avoid Apple’s steep commission fees, potentially leading to lower costs for consumers.

While Apple has declined to comment, the tech industry is closely monitoring the situation as it could influence similar disputes in other regions.