Apple to Allow Alternative App Stores for iOS Users in Brazil

Apple will soon allow alternative iOS app stores in Brazil, the country’s competition regulator announced yesterday. As 9to5Mac reported, this follows an antitrust lawsuit filed by e-commerce company MercadoLibre back in 2022, in which the company complained about Apple abusing its dominant position regarding the distribution of apps for iOS devices.

Yesterday, Brazil’s Conselho Administrativo de Defesa Econômica (CADE) explained in its press release that it has approved a Term of Commitment to Cease (TCC) submitted by Apple. To settle the lawsuit, the iPhone maker has agreed to allow third-party iOS app stores in Brazil and to let developers use external payment systems. The company will also use neutral wording in the warning messages about third-party app stores and external payment systems that iOS users in Brazil will see.

As part of the settlement, Apple has 105 days to implement these changes to avoid a fine of up to R$150 million ($27.1 million). A separate report from Brazilian blog Tecnoblog revealed that Apple will still take a 5% “Core Technology Commission” fee on transactions going through alternative app stores. Additionally, the company will take a 15% cut on in-app purchases for App Store apps when developers redirect users to their own payment systems.

Apple shared the following statement with 9to5Mac to comment on the settlement:

In order to comply with regulatory demands from CADE, Apple is making changes that will impact iOS apps in Brazil. While these changes will open new privacy and security risks to users, we have worked to maintain protections against some threats, including keeping in place important safeguards for younger users. These safeguards will not eliminate every risk, but they will help ensure that iOS remains the best, most secure mobile platform available in Brazil and we will continue to advocate on behalf of users and developers.

Overall, Apple will be doing in Brazil what it has been forced to do in the EU and Japan to comply with local regulations. In the US, Apple has only agreed to allow developers to link external payment methods.