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In response to the European Union’s mandate requiring Apple to allow third-party payment options within the App Store and to permit users to download and install apps via alternative app marketplaces—or face penalties for violating the Digital Markets Act—governments in other countries have begun following suit, demanding similar adjustments from Apple.
Most recently, Brazil’s Federal Court has ruled that Apple must, within the next 90 days, enable Brazilian users to download apps on iOS through third-party app marketplaces. Furthermore, users must also be allowed to install apps via sideloading, mirroring the regulatory changes imposed by the EU.
Brazil’s Administrative Council for Economic Defense (CADE), the country’s antitrust watchdog, had already issued an order in November of last year prohibiting Apple from restricting developers to distributing their apps solely through the App Store. The ruling also mandated that Apple implement these changes within 20 days or face daily fines exceeding $40,000.
Although Apple subsequently filed an appeal, arguing that modifications to the App Store were neither urgent nor necessary and that such changes could negatively impact its business operations, the Brazilian Federal Court ultimately rejected this stance after gathering opinions through public hearings. The court determined that Apple’s practices were hindering market competition within Brazil and ruled that the company must comply with the required adjustments within 90 days.
Additionally, the court pointed out that Apple has already implemented similar changes in the EU, demonstrating that such regulatory compliance has had minimal impact on its business development and has not resulted in significant harm to the company.
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