Apple’s strict rules on the App Store are increasingly the subject of controversy globally. Finally, Brazil’s anti-monopoly regulatory authority, Conselho Administrativo de Defesa Econômica (CADE), issued an important warning to Apple. The institution gave Apple 20 days to allow third-party application developers to freely use payment and distribution methods. If the necessary arrangements are not made at the end of this period, Apple may have to pay 250 thousand reals (1 million 491 thousand 338 TL) every day.
This decision was made as a result of a lawsuit filed by e-commerce platform MercadoLibre against Apple in 2022. MercadoLibre claimed that Apple imposed restrictions on developers regarding in-app purchases and app distribution.
Among the regulations CADE is demanding is that Apple grant developers the freedom to use alternative payment systems and distribution methods. Accordingly, application developers will be able to inform their users that they can purchase their products from platforms other than Apple. In addition, users will be able to access alternative payment systems through external links, buttons and other guidance tools in the applications.
Apple’s current payment system charges developers a commission of up to 30 percent. While this situation increases costs for many developers and platforms, Brazil’s new decisions aim to break this monopolization. At the same time, this decision may also change the obligation to distribute applications only through the App Store.
Apple faces similar pressures in Europe and the US
Brazil’s decision follows regulations Apple has faced in other regions. The European Union forced Apple to relax App Store rules within the scope of the Digital Markets Act, which came into force this year. With this law, developers were given the right to offer their applications and payment systems outside of Apple’s platform.
In the USA, Apple is under intense pressure, especially with the lawsuit filed by Epic Games. Epic Games had argued that Apple’s in-app purchase policies prevented competition. As a result of this lawsuit, Apple was forced to allow external payment systems under certain conditions, but far-reaching changes have not yet been made.
The regulations requested by Brazil could cause radical changes in Apple’s business model. The new freedoms to be granted to developers could significantly affect Apple’s revenues from payment systems. On the other hand, this could mean more options and lower costs for users.