Inside the Clash Between Brazil and Apple’s App Store

Brazil is pressuring Apple to open up its App Store, threatening severe penalties if the tech giant fails to comply.

Brazil Mandates Changes to Apple’s App Store

Global digital landscapes are shifting as countries increasingly tweak the operations of Apple’s renowned App Store. Brazil has stepped up as the latest country to enforce changes. The nation’s antitrust regulator, the Conselho Administrativo de Defesa Economica (CADE), has issued a stern ultimatum to the tech giant.

A Daily Ultimatum of 250,000 Real

The CADE has given Apple a 20-day deadline to implement changes that would allow third-party developers to sell apps without using Apple’s platform, under threat of a daily fine of 250,000 Real (about $43,000). This amount is significant but minor compared to Apple’s daily revenues.

Opening Up Competition

Specifically, Apple is required to enable third-party developers to direct users to alternative purchasing venues for their products or services. Developers should be able to include buttons, external links, and other calls to action that offer users different ways to access their products, beyond just the App Store. Additionally, developers should have the option to use alternative in-app purchasing systems (Apple currently takes a 30% commission) and to distribute their apps outside the App Store. This decision follows a complaint filed by e-commerce company MercadoLibre in 2022, which accused Apple of limiting distribution and purchasing methods.

A Global Movement

This Brazilian ruling aligns with broader shifts seen earlier this year. The European Union, for instance, required Apple to allow developers to process payments and distribute apps outside of the App Store through its Digital Markets Act. Similarly, in the United States, Apple faced pressures to change its policies following a lawsuit by Epic Games.

It appears that the era of Big Tech’s dominance over the digital market may be waning.