Apple Faces Daily Fines in Brazil Over App Store Payment Restrictions

Brazil's antitrust regulator has ordered Apple to remove App Store restrictions on third-party payment systems and allow developers to market alternative payment options for in-app purchases. Apple has 20 days to comply or face daily fines of $43,000.

The ruling by the Council for Economic Defense (Cade) comes in response to a 2022 complaint filed by MercadoLibre, Latin America's largest e-commerce platform. The company accused Apple of abusing its monopolistic position by requiring developers to use Apple's own payment system and preventing them from redirecting users to external payment options.

Under the new requirements, Apple must permit app developers to implement tools allowing customers to make purchases outside the Apple ecosystem. This includes enabling the use of hyperlinks to external websites and allowing developers to market third-party products and services within their apps.

The Brazilian case mirrors similar antitrust concerns raised in the EU. In March 2024, the European Commission fined Apple €1.8 billion ($1.95 billion) for restricting music streaming apps from informing users about cheaper subscription options outside the App Store. That ruling followed a complaint by Spotify in 2020.

MercadoLibre's original complaint, filed in both Brazil and Mexico, argued that Apple's restrictions particularly harm smaller competitors while benefiting large integrated digital companies. The e-commerce giant's SVP general counsel, Jacobo Cohen Imach, criticized Apple's practices as creating an "artificial tilt towards integrated ecosystems."

(Via Reuters.)

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