Brazil's new App Store terms face backlash from Epic Games and industry advocates

Brazil's new App Store terms face backlash from Epic Games and industry advocates

Apple's new app distribution rules in Brazil impose up to 21% fees for alternative payment systems, mirroring Japan's terms, raising concerns about competition and innovation.

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In Brazil, Apple has introduced new terms allowing app developers to utilize alternative marketplaces and payment methods, following an agreement with CADE, the competition authority. Developers opting to remain within the App Store and use Apple's in-app purchase (IAP) system will incur a 5% processing fee alongside an App Store commission that ranges from 10% to 21%. In contrast, those employing third-party payment systems will face similar commission rates between 10% and 21%, while apps that provide links to external payment options will see fees between 10% and 18%. Additionally, developers distributing through alternative marketplaces will pay a 5% Core Technology Commission on digital goods and services sales.

While Apple claims the revised terms align with those implemented in Japan, critics argue otherwise. The Coalition for App Fairness, which includes companies like Epic Games and Spotify, contends that Apple's policies hinder the creation of a competitive app environment in Brazil, imposing excessive fees and tracking requirements on developers who choose alternative distribution methods. Epic Games echoed these sentiments, asserting that Apple's practices are structured to stifle competition and discourage developers from exploring options outside the App Store.

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