Brazilian regulators have approved a settlement that will require Apple to change how the App Store operates on iPhone in the country, including allowing alternative app stores, expanded payment options, and a defined new fee structure.
In a press release, Brazil's Administrative Council of Economic Defense (CADE), said its court has approved a Term of Commitment to Cease proposed by Apple to resolve an investigation into the company's App Store rules on iOS. The case began in 2022 and examined whether Apple's restrictions on app distribution and payments limited competition in Brazil.
CADE said the investigation focused on Apple's prohibition of third-party app stores on iOS, the requirement that developers use Apple's in-app purchase system for digital goods and subscriptions, and restrictions that prevented developers from informing users about alternative payment options.
Under the settlement, Apple will be required to allow developers in Brazil to link to external payment options and promote offers that take place outside their apps. Developers will also be permitted to offer third-party payment methods within their apps alongside Apple's own in-app purchase system, with CADE requiring that these options be presented next to Apple's payment option.
Apple will also have to allow third-party app stores in Brazil. CADE specified that Apple may still display warnings or informational messages to users, but those messages must be neutral, objective, and limited in scope, and must not introduce extra steps or barriers that make alternative options harder to use.
According to Brazilian technology site Tecnoblog, which said it obtained the details directly from CADE, purchases made through the App Store will remain subject to a 10% or 25% commission under standard terms. Developers who use Apple's payment system would also pay a 5% transaction fee.
If an app directs users to pay outside the app using only static text, with no clickable link or button, Apple will not charge a fee. If the app includes a clickable button or link that sends users to an external website for payment, Apple will charge a 15% fee. Third-party app stores will be subject to a 5% Core Technology Commission.
CADE said Apple will have up to 105 days to implement the required changes once the new rules become binding.
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