Antitrust Settlement Reached: Apple (AAPL.US) to Open iOS to Third-Party Stores and External Payments in Brazil

Stock News12-24 14:45

Apple (AAPL.US) and Brazil's antitrust regulator, CADE, jointly announced on Tuesday that the tech giant will permit third-party app stores on iOS devices in Brazil, resolving a three-year antitrust lawsuit. The Brazilian Administrative Council for Economic Defense stated that its internal tribunal had reached a majority decision to accept Apple's proposed settlement terms.

Under the agreement, Apple must not only allow alternative app stores but also enable third-party payment processing or redirects to external websites for in-app purchases. Apple acknowledged in a statement that it would implement changes to comply with CADE's requirements but warned that these adjustments could introduce privacy and security risks for users. The company emphasized maintaining certain safeguards while admitting they "cannot eliminate all risks."

The investigation stemmed from a 2022 complaint by Uruguay-based e-commerce platform MercadoLibre, which accused Apple of restricting digital goods distribution and in-app purchases. CADE imposed precautionary measures against Apple in 2024, and earlier this year, its technical unit recommended an adverse ruling before referring the case to the tribunal for final judgment.

MercadoLibre, which operates across Latin America, acknowledged CADE's efforts to address "competitive challenges" posed by iOS and Apple's App Store in Brazil but noted the settlement "only partially meets the need for more balanced rules."

The agreement between CADE and Apple will remain in effect for three years, starting when the new terms take effect for developers. Apple has 105 days to implement the required changes. CADE warned that non-compliance could result in fines up to 150 million reais (~$27.09 million). Apple also agreed to withdraw its legal appeal against the 2024 precautionary measures.

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