Brazil's Antitrust Body Takes a Stand: Apple Must Lift In-App Payment Restrictions

The Complaint Against Apple MercadoLibre's complaint, lodged in 2022, accused Apple of enforcing restrictive practices that stifle competition and limit consumer choice. Specifically, the complaint pointed out that Apple prohibited apps from distributing third-party digital goods and services, which encompasses a vast range of content—from movies and music to books and video games. This restriction essentially forced developers to rely solely on Apple’s payment system for in-app purchases, thereby limiting their ability to redirect customers to alternative purchasing options. Cade's Ruling Cade's decision mandates that Apple must now allow developers to include tools that facilitate purchases outside of the app. This includes the ability to use hyperlinks that direct customers to external websites for transactions. Additionally, Apple is required to permit developers to offer various in-app payment processing options, beyond its own proprietary system. This ruling not only empowers developers but also enhances consumer choice, allowing users to explore different payment methods. The Consequences for Apple Failure to comply with Cade's ruling could have significant financial repercussions for Apple. The company has been given a strict deadline of 20 days to implement these changes. If it does not comply, it faces a daily fine of 250,000 reais (approximately $43,000). Such penalties could quickly escalate, underscoring the seriousness of the regulators' demands and the potential impact on Apple's operations in Brazil. Industry Impact This ruling has broader implications for the tech industry, particularly concerning how major platforms manage in-app purchases. As regulatory scrutiny intensifies worldwide, Apple and other tech giants may need to reassess their business models to adapt to evolving legal landscapes. The outcome of this case could set a precedent for similar actions in other countries, influencing how digital marketplaces operate on a global scale.