Brazil Rules Against Apple’s Anti-Steering Rules
Brazilian antitrust regulator Cade said on Monday that Apple must lift restrictions on payment methods for in-app purchases, among other things, as the watchdog moved to proceed with an investigation into a complaint filed by Latin America e-commerce giant MercadoLibre.
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MercadoLibre’s complaint, filed in 2022 in Brazil and Mexico, accused Apple of imposing a series of restrictions on the distribution of digital goods and in-app purchases, including banning apps from distributing third-party digital goods and services such as movies, music, video games, books and written content.
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Cade ruled that Apple must allow app developers to add tools so customers can buy their services or products outside the app, such as through the use of hyperlinks to external websites.
Apple has 20 days to comply or face daily fines of $43,000.
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The Brazilian case mirrors similar antitrust concerns raised in the EU. In March 2024, the European Commission fined Apple €1.8 billion ($1.95 billion) for restricting music streaming apps from informing users about cheaper subscription options outside the App Store.
It would look very silly to me if Apple continues to deal with these consistent findings in country after country after country after country in individualized ways instead of updating its rules globally. Very silly, indeed.
Previously:
- EU Fines Apple $2 Billion Over Anti-Steering Rules
- DMA Compliance: Alternative Payments
- StoreKit Purchase Link Entitlement for United States
- Apple Rejects Spotify Update That E-mails External Purchase Info
- StoreKit External Purchase Entitlement for South Korea
- Netherlands and Apple Reach External Payments Agreement
- App Store External Purchase Fee: 27%
- Apple Opposes Mentions of External Payment Options in Russia
Update (2024-12-06): Tim Hardwick:
A Brazilian federal court has overturned an antitrust ruling that would have required Apple to allow third-party payment systems in the App Store within 20 days.
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The decision came hours after reports emerged of Apple appealing the original order, with the company arguing that the required changes were too complex to implement within the given time frame.
While the injunction has been overturned, the broader antitrust investigation into Apple’s App Store practices will continue. Cade is expected to appeal the court’s decision, and Apple could still eventually be required to implement changes to its App Store policies in Brazil.
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It’s fascinating to see how Brazil is challenging Apple’s anti-steering policies. I’ve always found it frustrating when platforms limit how apps can communicate with users about alternatives. This could set an important precedent for consumer rights. I’m curious to see how this decision impacts other tech giants moving forward.
