Apple's Move to Permit Third-Party App Stores in Brazil Sparks Market Shift

Apple's Move to Permit Third-Party App Stores in Brazil Sparks Market Shift

Brazil's CADE settles with Apple, mandating third-party payment options and app stores. Apple faces $27 million penalties for non-compliance within 105 days. What does this mean for global tech regulations?

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Brazilian regulators have reached a settlement with Apple following a lengthy investigation into the company's practices related to its App Store fees and restrictions on third-party app stores. The nation's Administrative Council of Economic Defense (CADE) has approved an agreement that addresses allegations of anticompetitive behavior.

This agreement permits the use of third-party payment processing for in-app purchases and allows links to external sites for transactions, which will be displayed alongside Apple's own payment options. Apple must also permit the installation of third-party app stores, although it can issue warnings to users about these stores if the warnings are neutral.

A new fee structure is part of the settlement, stipulating no fees for users directed to outside payment methods via text. However, a 15 percent fee will apply for clickable links to external payment options. Purchases made through the App Store will incur a commission of either 10 percent or 20 percent, with a 5 percent transaction fee for developers using Apple's payment system. Additionally, a 5 percent "Core Technology Fee" will apply to all downloads from third-party app stores.

Under the settlement, Apple has 105 days to comply and may face fines of up to $27 million for non-compliance. This development follows increasing scrutiny from global regulators, including a recent $587 million penalty from the EU for violating its Digital Markets Act, which Apple is currently appealing.

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