Apple Wins Last-Gasp Reprieve From Brazil App Store Changes

A Brazilian federal court has overturned an antitrust ruling that would have required Apple to allow third-party payment systems in the App Store within 20 days.

The initial ruling, issued on November 26, came in response to a 2022 complaint from Latin American e-commerce platform MercadoLibre. The regulator had ordered Apple to remove restrictions on alternative payment systems and allow developers to market different payment options for in-app purchases, threatening daily fines of $43,000 for non-compliance.

But Judge Eduardo Santos da Rocha Penteado of the 14th Federal Civil Court on Thursday called the original decision by Brazil's competition regulator (Cade) "disproportionate and unnecessary."

In his decision, Penteado acknowledged that the measures demanded by Cade would "change, in a sensitive and structural way" Apple's business operations. He said that the technical complexity of the required changes and the global regulatory landscape, particularly similar decisions in the European Union, warranted a more thorough discussion.

The decision came hours after reports emerged of Apple appealing the original order, with the company arguing that the required changes were too complex to implement within the given time frame.

While the injunction has been overturned, the broader antitrust investigation into Apple's App Store practices will continue. Cade is expected to appeal the court's decision, and Apple could still eventually be required to implement changes to its App Store policies in Brazil.

The case follows similar regulatory challenges Apple faces globally, including a recent €1.8 billion fine from the European Commission over music streaming app restrictions. Apple has maintained throughout that the Brazilian regulator's demands would threaten user privacy and security.

(Via 9to5Mac.)